Hellow guys, Welcome to my website, and you are watching Pairs trading strategy - The Secret to Cashing Profits. and this vIdeo is uploaded by The Diary of a Trader at 2020-01-30T11:31:12-08:00. We are pramote this video only for entertainment and educational perpose only. So, I hop you like our website.
| Name | Pairs trading strategy - The Secret to Cashing Profits |
| Video Uploader | Video From The Diary of a Trader |
| Upload Date | This Video Uploaded At 30-01-2020 19:31:12 |
| Video Discription | Pairs trading strategy - The Secret to Cashing Profits Best + Low Spread Broker: https://cutt.ly/9Q9HaCi (instant withdraw) Top Broker + 100% Deposit bonus: https://cutt.ly/FVmlUFM What Is a Pairs Trade? A pairs trade is a trading strategy that involves matching a long position with a short position in two stocks with a high correlation. Understanding Pairs Trade Pairs trading was first introduced in the mid-'80s by a group of technical analyst researchers from Morgan Stanley. The concept uses statistical and technical analysis to seek out potential market-neutral profits. Market-Neutral Arbitrage Market-neutral strategies are a key aspect of pairs of trade transactions. Market-neutral strategies involve long and short positions in two different securities with a positive correlation. The two offsetting positions form the basis for a hedging strategy that seeks to benefit from either a positive or negative trend. Pairs Trade Strategy A pairs trade strategy is based on the historical correlation of two securities. The securities in a pairs trade must have a high positive correlation, which is the primary driver behind the strategy’s profits. A pairs trade strategy is best deployed when a trader identifies a correlation discrepancy. Relying on the historical notion that the two securities will maintain a specified correlation, the pairs trade can be deployed when this correlation falters. When pairs from the trade deviate, an investor would seek to take a dollar matched the long position in the underperforming security and sell short the outperforming security. If the securities return to their historical correlation, a profit is made from the convergence of the prices. Pairs Trade Benefits When a pairs trade performs as expected, the investor profits and also mitigate potential losses that would have occurred in the process. Profits are generated when the underperforming security regains value, and the outperforming security’s price deflates. The net profit is the total gained from the two positions #paritrading |
| Category | Education |
| Tags | Pairs trading strategy | pairs trading | market neutral strategy | finance | pair trading strategy | stock pair trading strategy | pairs trading strategy model | pair trading strategy india | futures pairs trading strategy | option pair trading strategy | stock pairs trading strategy | cointegrated pairs trading strategy | forex pair trading strategy | intraday pair trading strategy | tested trading strategy | forex strategy | hedge day trade | how to make money online | forex | trading | how | to | learn |
