I’m going to say it right up front…you don’t need any special knowledge to use Statistical Arbitrage, also known as StatArb. All it is, is a fancy name for pairs trading. But even that term, pairs trading, makes some traders unsure. It has too many moving parts, and people struggle to understand how one profits […]
Crude oil (CL) is one of the more active commodities to trade. It has tremendous volatility and excellent liquidity. Oil is affected by global economic and political conditions, almost to the same extent as US Treasuries. The price of crude oil affects the price of many other assets, including stocks, bonds, currencies and even other […]
The BoB spread is a type of yield curve spread, it depicts a spread between the very longest maturity treasuries, the 30-year Bond and the 30-year Ultra Bond. So, what’s the difference, and why is this such a good trading vehicle? Here’s the part of the yield curve that the BoB spread represents, indicated by […]
Spread or pairs trading is a very effective way to hedge your risk exposure to the movements of the broader market. With pairs trades you can make profits through simple and relatively low-risk positions. The trade is market-neutral, which means the direction of the overall market does not affect profit or loss…it’s the change in […]
