Machine Learning (ML) is a type of Artificial Intelligence (AI) that provides computers with the ability to learn without being explicitly programmed. It focuses on the development of computer programs that can access data and use it to learn for themselves. The process of learning begins with observations or data, …

Options are contracts that allow traders to buy or sell a security at a predetermined price. Options give the holder the right, but not the obligation, to buy (call option) or sell (put option). They are traded on exchanges like stocks and have their own ticker symbols. Options can be …

Would you rather choose a trading system that wins small amounts most of the time but when it loses, the loss is big? Or would you rather choose a trading system that loses small amounts most of the time but when it wins, the gain is big? In this blog …

It is generally accepted that commodity prices can have an impact on equity markets, as the prices of commodities can affect the profitability and performance of companies in various sectors. For example, a rise in the price of oil may benefit companies in the energy sector, while a decline in …

In the financial markets, the momentum anomaly is a phenomenon in which financial assets that have had recent positive returns tend to continue performing well, while those with recent negative returns tend to keep declining. It is also known as the ‘momentum effect’ and has been observed in stocks, commodities, …

A butterfly option position is an advanced trading strategy that requires a combination of calls and/or puts with three different strike prices of the same maturity. It’s a non-directional options trading strategy that is commonly used when an investor believes that the underlying asset’s price will remain relatively stable in …

Credit risk is the probability of loss from a borrower or counterparty. It is also known as default risk and refers to the potential that an entity may not be able to meet its obligations when due. Credit risk can arise from various sources including individual borrowers, companies, government entities, …

A technical trading system is a set of rules that define how to enter, exit, and manage trades in the financial markets. It is based on technical analysis which seeks to identify trends and patterns by analyzing past price movements. It includes precise criteria for when to buy or sell …

A trading system is a set of rules that define when to buy or sell a security. The purpose of a trading system is to take the emotion out of trading and help the trader make objective decisions. There are many different types of trading systems, but all systems have …

A recession is a significant decline in economic activity spread across the economy, lasting more than a few months. It is visible in industrial production, employment, real income, and other measures of economic activity. A recession generally occurs when there is a widespread drop in spending (an adverse demand shock). …