Press release
What is meant by pair trading and its advantages ?
Pair trading is a trading strategy which matches a long position with a short position in pair of two highly correlated stocks, commodities, currencies, etf's or options. Pair trading trades are not affected in any market direction (bearish or bullish) or gets less affected by it.Reason behind it is that while using this type of trading strategy we take long position with one commodity/stock and short position with other making trade neutral.This is why it is also called as neutral market trading strategy.Experts suggestions on option trading tips are often used by traders to trade in more risk free manner using this strategy.Some advantages of pair trading strategy are discussed below :
Profit in different market conditions
This strategy does not depends upon the market movements, it only depends on the the relation between the two stocks/commodities/currencies.In other trading strategies long traders gets benefited when market is rising and short traders are benefited when market is falling.For pair traders market direction is no matter of concern, only the stocks or commodities which are part of pair determines the outcome of each trade. This is one of the most attractive feature of pair trading.
Limited risk
Risk is always limited and known with pair trading.The concept of pair trading strategy revolves around matching a long position with short position in related stocks or commodities which automatically creates a hedge because of which risk is limited and controlled.
Predictable
Traders can predict two commodities for example gold, silver that have shown good historical correlation will converge again or not after a divergence easily. The most important step with this strategy is making a choice of good pair among all.
Market's volatile nature is no more an obstacle
Traders often fear to trade in market because of its volatile nature. At times it becomes really difficult to handle frequent market fluctuations.With pair trading, volatility will be your best friend. When prices between pairs diverge and converge many times offer traders with great possibilities of earning profit.
Traders with good market knowledge and trading experience can perform really well using this strategy. In commodity pair trading, mcx tips can be used for getting more positive trade results. Apart from above discussed advantages there are some disadvantages of pair trading as well which traders should be aware of. Commission and fees charged at the time of trading gets double with this strategy . Under normal trading strategy charges are to be paid one time but here two times commission have to be paid to enter and exit each trade.A good research work and proper interpretations of results is required to identify truly correlated pairs which can offer good trading opportunity.
Epic Research Limited is a supreme level financial advisory services provider firm .We have designed services for different investors as per their needs like equity tips , ncdex tips, stock tips and many more to serve our clients. We offer regular services for investors with less capital and premium services for massive investors looking for higher returns on investments with bigger targets.
Want to take a FREE TRIAL? Visit our site link below and become a part of our Epic family. Happy trading.
http://www.epicresearch.co/
or
mail us @ info@epicresearch.co
Also you can Whatsapp us at :7049084664
Our Office:411 Milinda Manor, 2 RNT Road, Indore 452001 .
This release was published on openPR.
Permanent link to this press release:
Copy
Please set a link in the press area of your homepage to this press release on openPR. openPR disclaims liability for any content contained in this release.
You can edit or delete your press release What is meant by pair trading and its advantages ? here
News-ID: 551425 • Views: …
More Releases from Epic Research
Epic Research Daily Agri Commodity Report Of 28 August 2018
Multi Commodity Exchange of India Ltd (MCX) has signed a Memorandum of Understanding (MoU) with Indian Cotton Federation (ICF).The MoU with MCXNSE 1.18 % will enable ICF’s members to effectively participate in the exchange’s knowledge-sharing initiatives to understand the benefits, techniques and strategies of risk management using cotton futures contracts. The agreement is further designed to facilitate potential collaboration in areas such as organising awareness events for cotton value chain…
Epic Research Daily Agri Commodity Report Of 27 August 2018
Rapid heavy rain and floods in Coffee growing areas in Kerala have worsened the shortage of robusta beans, hitting hard exporters and local producers. The production of robusta, which accounts for majority of Coffee exports from the country and is the chief ingredient for instant Coffee, was last year 10-20% short of the Coffee Board’s projection of 2.21 lakh tonnes. The inclement weather is expected to pull down the crop…
Epic Research Daily Agri Commodity Report Of 24 August 2018
The Directorate General of Foreign Trade (DGFT) has allowed import of yellow peas up to 125 tonnes, covering advance payment made early this year to sellers abroad. Importers traditionally make advance payment of up to 10 per cent of the value for contracts to be executed in the future. This got stuck with DGFT suspending all import of yellow peas without a Letter of Credit (LC), by an April 25…
Epic Research Daily Agri Commodity Report Of 21 August 2018
India's Palm Oil imports are likely to fall 15% in 2017/18 from the year before to their lowest in six years, hit by a hike in import taxes, a weaker rupee and tighter credit for would-be buyers, industry sources said. Local prices moved up due to higher import tax and depreciation in the rupee. The price rise moderated demand for imports, the Solvent Extractors' Association of India (SEA) said. India…
More Releases for Traders
Resiliencez: Trading signals and analytics for traders
Trading signals, analytics for traders and investors worldwide using top level artificial intelligence expert systems – This is Resiliencez
"Trading signals, analytics for traders and investors worldwide using top level artificial intelligence expert systems – This is Resiliencez"
* What is Resiliencez and what’s your mission?
Resiliencez is a software company in Singapore dealing specifically with trading signals, analytics for traders and investors worldwide using top level artificial intelligence expert systems. We are…
Pinterest: the perfect picture for Libertex traders
Following the recent incorporation of Lyft to its platform, Libertex continues to expand the list of assets for its clients. Today, the Libertex trading platform announces the launch of CFDs (contracts for difference) for Pinterest (PINS), valued at $10 bn after the IPO that took place this April 17th, 2019.
The IPO price, initially set at a range of $15 to $17, quickly moved on to $19, proving the interest of…
Ear Drops Market 2017 – Manufacturers, Suppliers & Traders
Qyresearchreports include new market research report 2017-2022 Ear Drop Report on Global and United States Market, Status and Forecast, by Players, Types and Applications to its huge collection of research reports.
The report “Ear Drop”, recently featured on QYResearchReports.com, provides key insights on the global market Ear Drop with a focus on the state of the various elements of the market. The report provides a comprehensive outlook of the global Ear…
Tokyo Bay Traders Announces Environmental Policy
Tokyo Bay Traders announced today that it has adopted a comprehensive policy that applies high environmental standards to the firm's global business activities.
Tokyo, Japan, October 10, 2011 -- Tokyo Bay Traders announced today that it has adopted a comprehensive policy that applies high environmental standards to the firm's global business activities. As part of a broad commitment, the firm has adopted principles and guidelines that promote environmental and social responsibility…
Introducing Stock Traders Talk
The website which has been designed so users can participate in discussions and join their penny stock chat room to build a reputation within the trading and investing industry.
What is making the new website so unique is that after extensive research within the trading industry they have included a number of unique functions that are not typically available on any other website and they include real-time message boards, ticker dedicated…
Tokyo Bay Traders- The Emerging Asian Markets
For several years now we have been preaching and re-instating that The New Normal is where Asia and the Emerging Markets Drive Global Economic Growth with the U.S. and Europe trailing behind. Investors should focus on Companies that are plugged into Asia and the Emerging Markets..
Tokyo, Japan, October 01, 2011 -- For several years now we have been preaching and re-instating that The New Normal is where Asia and the…
