In a previous post, we discussed how the dynamics of assets are priced in the options prices. We recently came across a newly published article that explored the same topic but from a different perspective that does not involve options. The conclusion of the new article is consistent with …

A collateralized debt obligation (CDO) is a security backed by a pool of assets, such as mortgages, credit card debt, or other types of loans. The issuer of a CDO assembles different types of debt instruments and sells ownership stakes in the CDO to investors. Because the underlying assets are …

DeFi, which stands for Decentralized Finance, is a growing sector in the world of finance. It refers to financial applications that are built on top of blockchain technology, and it offers a number of advantages over traditional finance. DeFi is still in its early days, but it is quickly gaining …

Human psychological bias affects us in many different ways. We have recently discussed how recency bias influences our trading. In this post, we’re going to talk about selection bias. Selection bias occurs when a statistical sample is not representative of the entire population. This situation arises, for example, when a …

Could There Be a #Bitcoin Crash Next Year?#BTC #SPYhttps://t.co/tU4VpwLJKV — Harbourfront Technologies (@DerivValuation) December 28, 2021 2021 was a meteoric year for crypto, with bitcoin looking to end the year almost 70% up from its January starting value, the first big crypto company (Coinbase) going public in April, and the …

The stock markets are unlikely to continue their bull run of the past year in 2022 with investors eying other opportunities as interest rates rise, according to Wharton finance professor Itay Goldstein. Federal Reserve officials last week projected at least three quarter-percentage-point rate increases next year, signaling their concern over …

A leveraged exchange-traded fund (ETF) is a financial instrument that offers the return of an underlying index multiplied by a given leverage factor. The fund usually uses borrowed money, futures, swaps, and other derivatives to amplify the daily price movements of the underlying index. Investing in these exchange-traded funds involves …

Publication of the Canadian dollar offered rate (CDOR), Canada’s primary interest rate benchmark, should end after June 2024, the working group helping to transition Canadian financial markets to risk-free benchmark interest rates said on Thursday. The Canadian Alternative Reference Rate working group (CARR) recommends that Refinitiv Benchmark Services (UK) Limited …

Analyzing intermarket relationships between assets can help identify trends and predict returns. Traditionally, analysts use commodity, currency, and interest-rate data to predict the direction of the stock market. In this regard, reference brings a fresh new perspective. It utilized price ratios of gold over other assets in order to …

Trading is a difficult endeavor, and the main reason most traders fail is that they don’t have an edge. The expectation value of most trading strategies is zero before commissions and slippage. Taking commissions and slippage into account, trading is a negative-sum game. Even with a positive expectancy trading system, …