Learn Institutional Level Trading part 6Institutional trading involves the buying and selling of financial instruments for large organizations and entities, like mutual funds, pension funds, and insurance companies, on behalf of their clients or members. These entities trade large volumes, potentially influencing market prices and liquidity.
Technical
Learn Institutional Level Trading part 3Trading institutions operate through entities which combine multiple investment funds from investors to invest in financial markets. These firms operate differently from people who maintain brokerage accounts since they oversee massive asset portfolios while their market-shaping trading volume defines their operations.
PCR Trading Strategy part 2Typically, a put-call ratio is a derivative indicator. It is designed to enable traders to determine the sentiment of the options market effectively. This ratio is computed either by factoring in the open interest for a given period or based on the volume of options trading
PCR Trading Strategy part 1The Put-Call Ratio (PCR) is a technical indicator used by traders to gauge market sentiment and identify potential trend reversals. It's calculated by dividing the total open interest of put options by the total open interest of call options. A high PCR (above 1) suggests bearish sentiment, while a low PCR (below 1) indicates bullish sentiment. Traders often use PCR as a contrarian indicator, meaning they might look to buy when the PCR is high, anticipating a reversal, or sell when it's low, expecting a downturn.
Option and Database TradingIn financial terms, "option trading" and "database trading" refer to distinct activities. Option trading involves buying and selling contracts that grant the right, but not the obligation, to buy or sell an underlying asset at a specific price within a certain timeframe. Database trading, on the other hand, is not a standard financial term. It likely refers to trading or managing data within databases, which could include activities like data analysis, querying, or manipulation.
RSI and RSI Divergence RSI: Divergence appears when the RSI's highs or lows diverge from price. For example, if the price makes new lows but the RSI bottoms at higher levels, it signals bullish divergence; if the price makes new highs but the RSI peaks at lower levels, it signals bearish divergence.
Institution Trading Strategies part 5Institutional traders incorporate strategies that emphasize both long-term value and diversification in their trading practices. They leverage significant amounts of capital to build portfolios diversified across multiple assets, which helps reduce risk while seeking improved market prices.
Institution Trading part 4Institutional trading involves the buying and selling of large quantities of financial assets, typically conducted by institutional investors like hedge funds, mutual funds, and pension funds. These entities manage money for others and trade in securities, including stocks, bonds, and derivatives.
Basic to Advance Trading The very best way to get into trading is to find a platform you trust, learn as much as you can about trading beforehand and then practise to get your skill, technique and strategies right. Thereafter, all that remains to be done is to create a trading plan and open a live account.
Divergence Trading Divergence occurs when the stochastic oscillator's peaks or troughs disagree with the price. For instance, if the stochastic makes lower highs while the price is rising, it indicates a bearish divergence. Likewise, higher stochastic lows against lower price lows indicate a bullish divergence.
Price Action Trading Price action trading is a strategy where traders make decisions based on the movement of an asset's price, without relying heavily on technical indicators. It focuses on understanding price patterns, trends, and key levels like support and resistance to anticipate future market direction.
Put and Call RatioThe put-call ratio (PCR) is a technical indicator in options trading that reflects the overall sentiment of the market. It compares the volume of put options traded to the volume of call options traded. Put options give the holder the right to sell an asset at a specific price, while call options give the right to buy it.
Management and Psychology Trading psychology refers to the emotional and mental state influencing a trader's decisions. It involves managing emotions like fear and greed, which can impact rational judgment and risk-taking, thus affecting trading outcomes. A disciplined mindset helps traders make logical decisions under pressure.
Class for Advanced Trading part 2A trade advance, also known as a trade loan, is a form of financing that facilitates international trade by providing liquidity to businesses. It helps businesses manage their cash flow during international transactions by offering access to funds before or during the payment cycle.
MACD ( Moving Average Convergence Divergence)When To Use And How To Read The MACD Indicator - short for Moving Average Convergence Divergence, is a popular momentum indicator in technical analysis used to identify trends and potential reversals in stock prices. It's a tool that helps traders understand the strength, direction, and duration of a trend by analyzing the relationship between two moving averages.
Technical Conpet"Technical Concept" refers to a specialized knowledge or understanding of technical aspects, often within a particular field like engineering, computer science, or a specific industry. It's not a standardized term with a single, fixed meaning, but rather a concept that can be interpreted in various ways depending on the context.
Option TradingIn trading, an option is a contract that gives the holder the right, but not the obligation, to buy or sell an underlying asset (like a stock, ETF, or commodity) at a predetermined price (the strike price) before a specific date (the expiration date). There are two main types: call options (the right to buy) and put options (the right to sell).
Support and Resistance part 1In stock market technical analysis, support and resistance are certain predetermined levels of the price of a security at which it is thought that the price will tend to stop and reverse. These levels are denoted by multiple touches of price without a breakthrough of the level.
Support and Resistance part 2Support is a price point below the current market price that indicate buying interest. Resistance is a price point above the current market price that indicate selling interest. S&R can be used to identify targets for the trade. For a long trade, look for the immediate resistance level as the target.
Institutional Trading Part 4Institutional trading involves the buying and selling of securities by large financial institutions on behalf of clients or for their own account. These institutions include hedge funds, mutual funds, pension funds, insurance companies, and banks. They often engage in larger-scale trades and have access to more complex financial instruments than retail investors.