What is Mean Reversion?

Mean reversion is a theory used in finance that suggests asset prices and returns eventually reverts to their long-term mean or average.To put in similar terms, mean...

Basket trading is often thought of as a tool for investment firms or hedge funds. However, the retail trader can also benefit from taking advantage of this active form of trading. Before we get...

If you listen to the media reports, it can feel like the stock market is a force of nature separate from human intervention, with rises and crashes as capricious as the winds themselves. However,...

Thanks to all who participated in our challenge! We plan to run this again on a much bigger scale, so this was our first attempt, and your involvement has been greatly appreciated.

The...

Prior to 1991, US stock markets were only open between 9:30am and 4pm (EST) and that no-one was able to trade outside of those regular trading hours (RTH), also known as standard hours or day...

The ability to work from home, set your own hours and use your money to generate further income are all big drivers for people to learn how to become a day (active) trader on the stock market....

We recommend reading What is Pair Trading before the rest of this article.

We think of the combined stocks as a “unit”.  We can either be Long or Short the unit or the pair....