Blog by PriyaSahu

Deep learning helps high-frequency trading (HFT) by using advanced computer models to quickly analyze market data and make fast decisions. It improves trade speed, accuracy, and prediction of price movements. This gives traders an edge to make profits from tiny price changes that happen wi...

Delta hedging in options risk management is a way to protect your portfolio from price changes in the stock market. It reduces the impact of stock price movement on your options position by taking an opposite trade. This strategy helps traders control risk and avoid big losses when the mar...

Delta hedging is a method used by traders to protect their options positions from price movements in the underlying asset. It helps reduce the risk of loss if the stock price moves up or down. By adjusting the number of shares or contracts based on the delta value, traders can keep their p...

Dispersion trading in equities is a strategy where traders bet on the price difference between individual stocks and a stock index. It means you expect some stocks to move differently than the overall index. This is done by buying or selling options on the index and the stocks. It helps in...

Divergence in trading is when the price of a stock or asset moves in the opposite direction of an indicator like RSI or MACD. This gives traders a signal that the current trend may be losing strength and a reversal could happen soon. Divergence is useful to spot early changes in market dir...

Divergences in technical analysis are used to spot early signs of a trend change. They happen when the price of a stock moves in the opposite direction of an indicator, like RSI or MACD. This shows that the current price trend may be weakening and could reverse soon. Traders use divergence...

Diversification across uncorrelated assets means putting your money into different types of investments that do not move in the same direction. This helps in reducing risk. If one asset goes down, the other may stay stable or go up, helping you avoid big losses in your total investment.

Dividend aristocrats are companies that have increased their dividend payments every year for at least 25 years. These companies are considered stable and financially strong. Including dividend aristocrats in your portfolio can help you earn steady income and reduce risk, especially during...

Dividend stripping is a strategy where investors buy shares just before the company pays a dividend, and sell them right after receiving the dividend. The goal is to earn the dividend income. It is mostly used to take tax benefits or earn short-term profits, but it must be done carefully d...

Dividend yield shows how much income you earn from a stock in the form of dividends, compared to its price. It is important in stock selection because it helps you know which stocks give regular returns, apart from price growth. A good dividend yield means steady income, which is helpful f...

A Doji candlestick pattern is a type of chart pattern that indicates indecision in the market. It forms when the opening and closing prices of a stock are almost the same, creating a small body with long wicks or shadows. The Doji pattern is often seen as a sign that the current trend may ...

The downside capture ratio is a performance metric used to measure how well a mutual fund performs during market downturns. It shows how much of the market’s negative returns a mutual fund captures when the market is declining. A lower downside capture ratio indicates that the fund perform...

Downside deviation is a crucial measure in evaluating the performance of mutual funds, specifically focusing on the negative side of returns. It helps investors understand the potential risks involved, highlighting the extent of potential losses a fund might experience during downturns. By...

Downside deviation is a key metric used to measure the risk of a mutual fund, specifically focusing on the volatility of negative returns. It only takes into account the negative performance of the fund, highlighting how much a fund's value is expected to drop below a minimum threshold (us...

Downside protection refers to the strategies used by mutual funds to reduce the risk of significant losses during market downturns. This is important because it helps protect investors from large declines in value, especially in volatile or bearish market conditions. Funds with good downsi...

Drawdown analysis is a measure used to assess the decline in the value of a mutual fund from its peak to its lowest point over a certain period of time. It helps investors understand how much they could lose during a market downturn. This analysis is significant because it shows the risk l...

Dual listing is when a company’s stock is listed on more than one stock exchange, often in different countries. This allows the company to reach a larger group of investors. For international stocks, dual listing increases visibility, access to capital, and liquidity, which can be benefici...

Duration is an important factor in bond mutual funds because it shows how much the value of a bond fund will change when interest rates go up or down. The duration of a bond fund is like a measuring stick for interest rate risk. A longer duration means that the fund’s value is more sensiti...

Duration is an important concept in debt mutual funds as it helps investors understand the sensitivity of the fund’s price to changes in interest rates. In simple terms, it shows how long it will take for the bond fund to repay its initial investment through its cash flows. The higher the ...

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is an important financial metric used to assess a company's profitability and financial performance. It helps investors analyze the core operations of a business, excluding the effects of financing and accounting deci...