Badhan Sen
Bio
Myself Badhan, I am a professional writer.I like to share some stories with my friends.
Stories (2116)
Filter by community
Understanding volatility and VIX
Volatility is often seen as an indicator of risk and uncertainty in the market, as higher volatility typically signals larger price swings, which can be perceived as more risk for investors. Understanding volatility is crucial for traders, investors, and analysts who seek to navigate the unpredictable nature of financial markets.
By Badhan Sen11 months ago in Chapters
Global macro investing
The goal is to exploit these trends to achieve returns by analyzing the macroeconomic environment, including factors like inflation, interest rates, economic growth, currency movements, and geopolitical events. This investment strategy is distinct from others because it looks at global economic conditions rather than focusing on individual companies or industries.
By Badhan Sen11 months ago in Chapters
Market-neutral investing explained
The primary goal is to make profits regardless of whether the broader market is trending up or down. This type of strategy is often employed by hedge funds, institutional investors, and sophisticated traders, as it requires a high level of skill, market knowledge, and a sound understanding of risk management.
By Badhan Sen11 months ago in Chapters
Tactical asset allocation
Tactical asset allocation, strategic asset allocation, which focuses on long-term goals and a fixed asset mix, TAA aims to exploit market conditions in the near term by making short-term shifts in the portfolio's asset allocation. The goal is to outperform a passive, long-term strategy by responding to economic indicators, market trends, and macroeconomic data.
By Badhan Sen11 months ago in Chapters
Risk parity investment strategy
The traditional portfolio management, where capital is allocated across different asset classes based on expected returns or other factors, risk parity allocates assets based on their risk contribution. The goal is to ensure that each asset class contributes equally to the total portfolio risk, leading to a more balanced and less volatile investment experience over time.
By Badhan Sen11 months ago in Chapters
Quantitative investing methods
These methods rely on data analysis and a systematic approach to investment decisions, as opposed to qualitative analysis, which often includes subjective judgment and intuition. Below are some common quantitative investing methods.
By Badhan Sen11 months ago in Chapters
Hedge funds vs. mutual funds
Both are pooled investment vehicles where money from multiple investors is pooled together to create a large portfolio of assets. However, they differ significantly in terms of their strategies, investor requirements, risk levels, and regulatory environments. Below is a breakdown of each, followed by a comparison to help you understand the key differences.
By Badhan Sen11 months ago in Chapters
Understanding credit default swaps
They are a form of insurance that protects investors from the risk of default by a borrower. In simple terms, a CDS allows one party to buy protection against the possibility of a loan or bond issuer (the reference entity) failing to meet its obligations. The buyer of the CDS makes periodic payments, called premiums, to the seller in exchange for a guarantee that the seller will compensate them if the reference entity defaults.
By Badhan Sen11 months ago in Chapters
Pairs trading strategy
This approach involves simultaneously buying one asset and short-selling another, typically within the same sector or industry. The goal is to profit from the relative movement of the two assets, rather than the overall market direction. The strategy is based on the concept of mean reversion, which suggests that the price ratio between two correlated assets will revert to its historical average over time.
By Badhan Sen11 months ago in Chapters
Algorithmic trading basics
These algorithms are designed to follow predefined rules or strategies, often based on technical indicators, price movements, volume, and other market data. The main goal of algorithmic trading is to generate profits at high speeds, reduce human error, and increase market efficiency.
By Badhan Sen11 months ago in Chapters
Convertible securities explained
These securities are primarily issued by companies to raise capital, offering attractive features for investors, especially in terms of potential upside from stock price appreciation, alongside the stability of debt-like features such as fixed interest payments.
By Badhan Sen11 months ago in Chapters
Arbitrage opportunities in markets
Arbitrage refers to the practice of exploiting price discrepancies in different markets to make a profit without risk. The fundamental idea behind arbitrage is that an identical or similar asset can be bought at a lower price in one market and sold at a higher price in another. These opportunities arise from inefficiencies in the pricing of assets, often due to factors like differences in demand, supply, or transaction costs between markets.
By Badhan Sen11 months ago in Chapters
