Our knowledge posts provide valuable insight into the world of artificial intelligence, trading and finance. 

You can learn about the latest developments in AI and how it is being used in the trading  and financial industry. 

Through our posts we try to cover important topics in the field, helping you to improve your knowledge and expertise in these areas. 




Knowledge Hub - Knowledge for Trading, Technology and Investment

Knowledge Hub

Tading Skills

What Is the Risk/Reward Ratio? The risk/reward ratio is a measure used by investors to compare the potential return of an investment to the risk of losing capital. It is often used by traders to decide which trades to take, and is calculated by dividing the potential loss (the risk) by the expected profit (the reward).

The Risk and Reward Ratio: What It Is and how Stock Investors Use It

Risk/Reward Ratio: What It Is and how Stock Investors Use It

Traders are individuals who buy and sell financial assets in financial markets for themselves or for others. They differ from investors in that they usually hold assets for shorter periods of time, seeking to profit from short-term trends, while investors tend to have a longer-term perspective.

What is a trader?

What Is a Trader and What Do Traders Do?

Artificial intelligence

Artificial intelligence (AI) is the science and engineering of creating intelligent machines, specifically intelligent computer programs, and understanding human intelligence through the use of computers. It is related to the task of using computers to understand human intelligence, but AI does not have to adhere to methods that are biologically observable, according to a definition provided by John McCarthy in a 2004 paper.

Artificial intelligence explained

What is artificial intelligence?

A stock represents a share of ownership in a company. It is different from a bond, which is a loan made by creditors to the company in exchange for regular payments. Companies issue stock to raise money from investors for new projects or to grow their business operations. The type of stock, either common or preferred, held by a shareholder determines the rights and privileges of ownership.

What is are stocks?

What is a stock?

An actively managed certificate (AMC) is a financial product that combines the features of a traditional certificate of deposit (CD) with the investment strategies of an actively managed fund. AMCs are issued by banks and other financial institutions and offer investors the opportunity to earn higher returns on their money through professional asset management.

Actively managed certificate

What is an AMC - Actively managed certificate?

Risk management is an important aspect of trading that helps traders minimize losses and protect their accounts from being wiped out. Proper risk management can allow traders to increase their chances of making money in the market.

Risk Management Trading Techniques

Trading Risk Management Techniques

Fintech

Fintech is the use of technology to improve and automate financial services. It covers a wide range of industries, including education, retail banking, fundraising, investment management, and cryptocurrencies like Bitcoin. While fintech has gained attention in recent years, the traditional global banking industry still holds a significant market capitalization.

Fintech or Financial Technology

What Is Financial Technology or Fintech?

Machine learning (ML) is a form of artificial intelligence (AI) that enables software applications to improve their accuracy at predicting outcomes without being explicitly programmed to do so. This is achieved by using historical data as input to predict new output values.

Machine learning explained

What is machine learning?

A trading bot, or robot, is a software program that uses market price movements to signal traders when to buy or sell a specific product or derivate at a given point in time. These systems can be automated and can be integrated with online brokers or exchange platforms.

What are trading bots?

What is a trading bot?

Day trading refers to the practice of buying and selling financial instruments, such as stocks, within the same trading day. This involves opening and closing positions within a single day, rather than holding them overnight. Day traders aim to take advantage of short-term price fluctuations in the market in order to generate profits.

Day trading

Whats is day trading?

An algorithm is a step-by-step set of instructions for solving a problem or performing a computation. It can be implemented in either hardware or software and is widely used in the field of information technology. In mathematics and computer science, an algorithm is typically a small procedure that solves a common problem. Algorithms are also used to perform data processing and are an important part of automated systems.

An algorithm can be used for simple tasks like sorting numbers or for more complex ones like suggesting content to users on social media. It begins with initial input and instructions for a specific computation, and when the computation is completed, it produces an output.

Algorithms explained

What is an algorithm?

A stop-loss order is a type of order that is placed with a broker to buy or sell a specific stock when it reaches a certain price, and it can be a useful tool for limiting potential losses. Nearly everyone can benefit from using a stop-loss order in their investment strategy, so it's worth considering when making a stock purchase decision.

Stop-Loss Order

The Stop-Loss Order

Behavioral finance is a branch of behavioral economics that suggests that psychological factors and biases play a role in the financial behaviors of investors and financial professionals. These influences and biases may be responsible for unusual market trends, particularly in the stock market. Given the importance of behavioral finance in investing, the Securities and Exchange Commission has dedicated staff to this area.





Behavioral Finance

What Is Behavioral Finance?

Investing Basics

Knowing how to calculate the percentage gain on your investment is essential for any investor. It's a simple process: just subtract the original purchase price from the selling price to find the gain or loss. If you don't have the original purchase price, you can ask your broker for it.

Investment's Percentage Gain or Loss

How to Determine an Investment's Percentage Gain or Loss

The money market and the capital market are two separate components of the global financial system. 

The money market involves the trade of short-term debt, typically between governments, corporations, banks, and financial institutions, with terms ranging from overnight to a year. 

The capital market, on the other hand, encompasses the trade of both stocks and bonds, which are long-term assets bought by a variety of financial actors, including institutions, brokers, and individual investors. 

Money Market vs Capital Market

Money Market vs Capital Market: What's the Difference?

The global financial crisis (GFC) of 2008 brought renewed focus on the importance of understanding liquidity risk, which refers to the risk that a financial institution or market will be unable to meet its financial obligations when they come due.

Liquidity Risk

Understanding Liquidity Risk

Algorithmic trading, also known as automated trading, black-box trading, or algo-trading, involves using a computer program to execute trades based on a set of predetermined instructions or an algorithm.

Algorithmic trading & Algo Trading

The basics of algorithmic trading

Trades made by other investors in the financial markets can be copied by traders. There are various methods for copying another investor's trades. A trader may, for instance, clone every transaction, including trade entries, take-profit orders, and stop-loss orders. As an alternative, users might manually duplicate the transactions after receiving trade notifications.

Copy trading

What is copy trading?

AI trading, also known as algorithmic or automated trading, is a computerized system that allows investors to simplify the investing process by using artificial intelligence and complex algorithms to execute trades and manage investments. These systems are programmed with specific rules for determining §when to buy or sell a security, as well as for establishing entry and exit points.

What is AI trading?

AI trading

Indicators are statistics that are used to assess current conditions and forecast future trends in financial or economic markets. 

In the world of investing, indicators often refer to technical chart patterns based on the price, volume, or open interest of a particular security. 

Technical indicators, such as moving averages, MACD, RSI, and OBV, are commonly used to analyze securities and make investment decisions. 

In economics, indicators are typically pieces of economic data that are used to measure the overall health of the economy and predict its direction. Examples of economic indicators include the CPI, GDP, and unemployment figures.

Trading indicators?

What are indicators?

Deep learning and machine learning are often used interchangeably, but there are some key differences between the two. Both are subfields of artificial intelligence, with deep learning being a subfield of machine learning. 

Depp learning and machine learning explained

Deep learning vs. machine learning

The financial market is constantly evolving, and so is the way that trading is conducted. Many traders,  are turning to algorithmic trading methods such as robo trading and algo trading to make informed financial decisions. These methods, which use computer programs to execute trades, can be more cost-effective than human, financial advisors and are popular among inexperienced investors.

Robo trading

What is robo trading?

In quantitative finance, math and large data sets are used to understand financial markets and securities. This can involve finding the value of financial instruments like options, and managing risk in investment portfolios. People who work in this area are known as "Quants."

Quantitative Finance

What is quantitative finance?

Margin trading can be a useful tool for traders looking to increase their buying power and take on larger positions. By borrowing money from their broker, traders are able to trade in larger sizes and potentially amplify their returns. However, it's important to keep in mind that margin trading also increases potential losses.


Trading on Margin

Some of the most successful money managers in the world, often referred to as the greatest investors, have amassed wealth and helped others do the same through their consistent ability to outperform the market. These individuals may approach investing in a variety of ways, ranging from innovative analysis to instinct-based decision making. Despite their different approaches, they have all achieved significant financial success.

The World's Greatest Investors

Short selling is a strategy where an investor borrows a security and sells it on the open market with the intention of buying it back at a lower price later. The investor is betting on the price of the security dropping and stands to profit from this decline. In contrast, long investors aim to profit from a security's price increasing. Short selling carries a high risk of loss, as the potential for losses is theoretically unlimited due to margin calls. However, it also has the potential for large profits.

What is Short Selling?

Fundamental analysis of a stock involves evaluating its key metrics, such as cash flow and return on assets (ROA), to assess its value. This analysis is typically performed by analysts who examine data that is expected to affect the stock's price. Stock fundamentals refer to these key metrics that are used to evaluate a company.

What are stock fundamentals

What are stock fundamentals?

An ETF is a type of investment vehicle that pools together assets such as stocks, bonds, or commodities, and trades on a stock exchange like a single stock. ETFs can be designed to track a variety of assets, indices, or investment strategies. They operate similar to mutual funds, but can be bought or sold on the stock exchange throughout the trading day.


An ETF may hold a large number of stocks from a range of industries, or it could be focused on a specific sector or industry. Some ETFs invest only in U.S. securities, while others have a global perspective. For instance, an ETF that focuses on the banking industry would contain stocks of various banks.




What Is an Exchange-Traded Fund - ETF?

Stockholders are given a portion of ownership in a company through stocks, which are also referred to as "equities. There are several reasons why investors may purchase stocks, some of which include:

the potential for the stock to increase in value (capital appreciation)receiving regular income in the form of dividends, which are a portion of the company's profits distributed to shareholdershaving a say in the company's decision-making process through voting rights on shareholder proposals.

What are stocks?

A mutual fund is an investment vehicle that brings together money from multiple investors to create a diverse portfolio of securities, such as stocks, bonds, and short-term debt. These combined holdings are referred to as the mutual fund's portfolio. Investors can participate by purchasing shares in the fund, with each share representing a proportional ownership stake and a share in the income generated by the fund's investments.

What are Mutual Funds?

CFDs, or contracts for differences, are financial derivatives in which gains and losses are based on the difference between the opening and closing trade prices, and are settled in cash rather than with the delivery of physical assets or securities.

CFDs, or Contracts for Differences, are a sophisticated trading technique employed by seasoned traders and it is prohibited in the United States.

What are CFDs?

A commodity futures contract is a legally binding agreement to either buy or sell a specific amount of a commodity at a predetermined price at a specified date in the future. These contracts can be for a variety of commodities such as metals, agricultural products, and even financial instruments like currencies. A commodity futures contract is a legally binding agreement to either buy or sell a specific amount of a commodity at a predetermined price at a specified date in the future. These contracts can be for a variety of commodities such as metals, agricultural products, and even financial instruments like currencies.



What are commodities?

The term "stock market" refers to the various exchanges where shares of publicly traded companies are bought and sold. These financial transactions take place on formal exchanges and through over-the-counter (OTC) markets that are subject to a set of regulations.

What Is the Stock Market

What Is the Stock Market?

A long position is when an investor buys a security or derivative with the expectation that its value will increase. An investor establishes a long position by purchasing securities such as stocks, mutual funds, or currencies, or derivatives such as options and futures, with the expectation that the value will rise. This is a bullish view, and the opposite of a short position.

What is a Long Position?

After-hours trading refers to the buying and selling of securities that takes place outside of regular stock exchange hours, typically from 4 p.m. to 8 p.m. Eastern Time. This type of trading is typically conducted through electronic communication networks (ECNs) and typically sees less trading activity than during regular hours.

What Is After-Hours Trading?

While it is true that the stock market has regular trading hours, trading does not cease when major exchanges close. Except for stock market holidays, the regular trading hours for the U.S. stock market, which includes the Nasdaq Stock Market (Nasdaq) and the New York Stock Exchange (NYSE), are 9:30 a.m. to 4:00 p.m. There are also several days, such as Christmas Eve, when the stock market closes early at 1 p.m., typically around other holidays (All times Eastern unless otherwise indicated.)

Stock Market Trading Hours: What Time Is the Stock Market Open Today?

A bull market is a period in which the price of an asset or security rises continuously on the financial markets. The conventional definition of a bull market is when stock prices increase by 20% after two consecutive 20% declines. To profit from bull markets, traders employ a variety of strategies, including increased buy-and-hold and retracement. A bear market is the opposite of a bull market, in which prices trend downward.