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Advanced Topics
This page is for you experts. We will cover various advanced
topics. Let
us know if there are any topics you would like to see included.
Beginners might feel more comfortable here.
Links
- AIMR (Association for
Investiment Management and Research) -the place to go to become
a CFA (Certified Financial Analyst)
- Anomalies
- a great list of market anomalies collected by Investor
Home. Addresses questions such as is the market truly random?
If it is then Technical Analysis can't work. The
random walk theory says that the market is very efficient and
any inefficiency will get acted upon by smart money to increase
returns, which will return the market to the random state. The
book Random
Walk Down Wall Street does its best to try to explain
this concept.
- Autex -
Send and receive indications of interest directly with counterparts
using AutEx®. AutEx is the investment industry's preferred
electronic database and online real-time network for trade order
indications and executions for Listed, NASDAQ/OTC, ADR, Ordinary
and Convertible securities. AutEx offers global access to liquidity
to over 3,000 investment managers and broker/dealers worldwide.
AutEx enables its subscribers to find the other side of the trade
quickly and effortlessly. Every day, more than 400,000 messages
are transmitted between buyers and sellers, making AutEx an integral
part of today's volatile market place.
- Block
Trades - are recorded trades which are greater than 10,000
shares. This trades are usually done by institutions
- Clearing
and Settlement - this is how the
stock actually changes hands when you make a trade.
- CMT - Chartered
Market Technician - Get certified that you know your Technical
Analysis stuff from the MTA - Market
Technicians Association
- Curbs -
There are various trading limits that take effect on certain
price movements in the NYSE.
On CNBC when you see "Curbs"
it means, the Dow has been up or down 170 points from the previous
colse, index-arbitrage orders on the S&P 500 are stabalized
until the market moves to a level 80 points from the previos
close.
- Efficient
Market Hypothesis - Is the stock market just random
- Fair Value
- learn the how and whys of Fair Value as an index arbitrage
tool.
- Fix
- an electronic messaging format that allows computerized
system to automated the sending and processing of trades
- Foreign
Exchange - is the trading of currencies for profit. Recently
Europe has gone to the unified currency of the Euro. Find out
more about the Yen, the Euro and the Pound here.
- Fixed
Income - better known as bonds, contains links to sites that
service the bond market
- Futures
- here are some links to sites which deal with futures, commodities,
currencies
- Hedge
Funds - are basically very risky mutual funds which use any
or all strategies to including shorting, using margin, options
to maximize performance. Don't confuse this with hedging,
which could be used to reduce currency risk in a stock.
- Ibbotson
Research ($) -
company that authors advanced investment papers
- Indexers
- they've given up on beating the market since they believe
that it's random and has beaten 80% of all fund managers in the
process.
- Instinet
- their not just for pre-market trading they're the biggest
and first ECN.
- International
- we've included some sites which cater to the international
investor
- Index arbitrage is defined as the purchase or sale of a basket
of stocks in conjunction with the sale or purchase of a derivative
product such as stock-index futures, to profit from the price
difference between the basket and the derivative product.
- LiquidNet
- Launched in April 2001, Liquidnet is the fastest-launching
alternative trading system (ATS) for buy-side institutions in
the United States. Liquidnet's unique model brings natural buyers
and sellers together and enables them to anonymously negotiate
trades among each other, without intermediaries or information
leaks. Liquidnet's institutional Members trade large blocks of
small-, mid- and large-cap stocks easily, efficiently and with
little to no market impact costs.
- Market
Markers - These are the bookies of the stock market.
- Market
Timing - here are some sites and information to help with
timing the market
- Nasdaq
Level II Tutorial -
Nasdaq Level II, allows you to display the bid-ask of all the
market makers and ECNs, not just the inside quote
- NYSE
Market Info - The New York Stock Exchange supplies some interesting
information here on Research Papers, Data Library, Tick data,
Program trading and bond information
- Options
- here are some links to the options markets. Options,
can be used for speculation or for hedging. There is a whole
separate language for options and we've tried to help you get
through the maze here.
- Posit -
is an intraday matching system run by ITG
- Program
Trading - includes many -trading strategies which involves
buying or selling a basket of at least 15 stocks with a total
value of $1 million or more. Program trading is calculated as
the sum of the shares bought, sold and sold short in program
trades. The total of these shares is divided by total reported
volume.
- Quantitative
Analysis - these are the guys with the statistics and the
models that are trying to beat the market
- Risk Premium
- this is the perctage you pay to own stocks above hold a
"safe" investment
- Statistics
- there is a huge field of using statistics in trading. If you
want to make a living in the market it pays to know your stuff.
- The
Fed
- Alan Greenspan is the quarterback. Find out what the team
does.
- Tick
Data - is the actual trades that take place on the exchanges.
This data consists of trades and quotes. The quotes
are the inside bid-ask and their sizes. This data can be purchased
from the NYSE.
- Transaction
Costs - are the measurement of trading costs, including commissions,
taxes, market impact, opportunity costs
- Underwriters
- These are the people who find the investors for issuance new
stocks
- VWAP
- Volume Weighted Average Price is the weighted average price
which a stock trades at for some time period.
- Volatility
- a measure of how risky a stock is, usually quoted via Beta
also known as standard deviation
Top Risk Sites
Top Transaction Costs
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