What is High-Frequency Trading? High-Frequency Trading (HFT) refers to a method of trading used by investors. This method involves using computer software to buy or sell large numbers of stocks or securities in a short time. Due to this characteristic, it gets the name high-frequency trading. Investors can use algorithmic …

What is the Volume-Weighted Average Price? The volume-weighted average price (VWAP) represents a stock’s average price, weighted based on the total trading volume. Usually, investors use it to determine the average price that the stock has traded on the stock market for a day. The volume-weighted average price considers two …

Investors that are active in the stock market will come across two types of stocks. These include value and growth stocks. Both of these stocks provide varying risks and rewards. On top of that, there are several other differences that set these stocks apart. While there are no specific definitions …

What are Valuation Multiples? Valuation multiples are a group of ratios or multiples used to evaluate a company. For investors looking to compare between various investments, these multiples provide a comparison method. Valuation multiples consist of several tools to evaluate a company using financial metric comparisons. These multiples include assessing …

The use of different types of orders to mitigate risks is prevalent among investors. Through these, investors can manage or limit the potential losses they make in the market. Investors can use one of two tools to do so. These include stop-loss and stop-limit orders. However, these are both different …

The term portfolio refers to a collection of investments. These investments may include items from several asset classes, such as stocks, bonds, real estate, mutual funds, commodities, etc. Usually, investors aim to develop a portfolio that focuses on maximizing their returns. However, investors also have to face some risks with …

What is Value at Risk? Value at Risk (VaR) refers to a financial metric used in finance that investors use to estimate the risk of their investments. It involves measuring and quantifying the level of financial risk within investors’ portfolios for a specific period. However, it doesn’t only apply to …

Investors with varying risk tolerances will select different investing strategies. Some of these strategies promise higher returns. However, these also come with higher risks. On the other hand, some strategies may come with low risks and rewards. Similarly, investors may also choose strategies based on the time it takes for …

Every investor in the market has an investing strategy that helps them maximize their returns. These strategies are usually flexible and differ according to the investor’s risk tolerance, financial situation, budget, etc. Investors can either use a single strategy or a combination of various strategies to achieve their goals. One …

What are commodities? Commodities represent basic goods available in the market. These goods are interchangeable with other goods of the same type. Similarly, investors can also buy and sell them on dedicated markets. Some examples of commodities include precious metals, food items, oil, natural gases, etc. Usually, these goods come …