Aggregator is a system used to aggregate liquidity from several liquidity providers.   Retail aggregators packet small retail trades into larger trades that can be handled conveniently by banks. Some retail aggrega

In this post, we will discuss the cutting-edge world of portfolio optimization, and the star of the show is none other than Artificial Intelligence. Moving past the traditional approaches, there's a whole new world o

An algorithm is a sequence of unambiguous instructions to obtain a required output for any legitimate input within a finite amount of time. Algorithms have a defined beginning where the input data is processed using a de

Algorithmic trading, also known as black-box trading in some cases, or simply algo trading, is the process of placing orders in the market based on a certain trading logic via online trading terminals, which execute the

A trading platform is a software where there is live streaming of market prices of various financial products. The traders can open or close trading positions as per the requirements on the algorithmic trading platform.

An AON order is an order to buy or sell a stock with instructions that the order can be executed completely or not at all. However, unlike the FOK orders, AON orders are those that need not be necessarily executed immedi

Alpha is the measure of an investment’s performance compared to a certain benchmark. The excess return of the portfolio over the benchmark index is the portfolio’s alpha. If alpha is positive the investment h

An alternative hypothesis is contrary to the null hypothesis, usually that the observations are the result of a real effect. Alternative hypothesis is the hypothesis that we actually test for in the hypothesis testi

An alternative investment is an investment in an asset that is not conventional. Examples of conventional investments are bonds, cash, and shares. Alternative investments may include real estate, private equity, hedge fu

An American option is an option contract that can be exercised anytime on or before its actual expiration date. It is relatively more valuable than its European counterpart as the contract offers flexibility, as it can b

Arbitrage is the process of simultaneously transacting in multiple financial securities to make a profit from the difference in prices. This can be done in various ways such as the purchase and sale of same securities in

Arbitrageur is an investor who attempts to make a profit from price inefficiencies in similar financial instruments. In simple words, Arbitrageur is an individual or an organization who engages in arbitrage. Spottin

Introduction In this topic, you are going to learn how to forecast time-series using the ARIMA model. The results of the forecast (prediction in red vs actual in blue) using ARIMA model is shown below:   As you

It is the science and engineering of making intelligent machines, especially intelligent computer programs to calculate, reason, learn from experience, adapt to new situations and solve complex problems. Artificial Intel

Artificial Neural Network is an information processing paradigm which is used to study the behaviour of a complex system by computer simulation. It is inspired by the biological way of processing information by the human

An Asian option is an exotic option and is also called average-price option or average option. In Asian option, option payoff is dependent on the average price of the underlying asset, over a prespecified period, during

Ask price or offer price is the price that a seller is willing to accept to sell a security.

Ask size is the number of shares that are being offered to sell at the ask price.   Example If the ask in the market is $20*3000, this means the seller is willing to sell 3000 shares i.e ask size at a price of $20

A call or put option is said to be at-the-money when the strike price is equal to the current price of the underlying asset (i.e. spot price = strike price). An at-the-money option has no intrinsic value but it may have

Augmented Dickey Fuller test is the augmented version of dickey fuller test. The Augmented Dickey Fuller Test (ADF) is a unit root test for checking stationarity.   The hypotheses for the test: The null hypot

Automated trading refers to the complete automation of the trading process, which involves automation of decision making, order creation, order submission and order execution. It also includes quantitative modeling, risk

You can do paper/ live trading in Alpaca using Blueshift. Blueshift is a backtesting and live trading platform with institutional class infrastructure wherein you can code your strategy in Python and deploy it in live ma

Python and MT5 are great tools for automating your trading strategies. Python has powerful libraries for analysing data and developing trading strategies, while MT5 supports automated trading with Expert Advisors and oth

Autoregression is a time series model used in statistical analysis, which uses past observations as input to predict future values.   An AR(p) model is an autoregressive model where specific lagged values of yt ar

Average daily traded volume is the average number of individual shares traded in a day over a specified period of time. When the average daily trading volume of a security is high, it is traded more actively and typicall