Exploring the Technical Architecture of Trading Platforms
In today’s complex financial ecosystem, trading platforms undoubtedly occupy a central and critical position. They function like bustling financial marketplaces, where a wide range of assets—from traditional stocks, bonds, and futures to emerging digital currencies—are constantly exchanged. Trading activities continue around the clock, and the annual trading volume of well-known global platforms often reaches trillions…
How to Spot a Strong Quant Backtest
#1 Stable Returns Stable returns are one of the key indicators for evaluating the quality of a quantitative strategy. They represent the strategy’s ability to consistently generate profits during the backtest period. A truly robust quantitative strategy should not rely on a single market environment or specific opportunities, but rather be capable of delivering steady…
How to Prepare for Quantitative Trading in Stocks
Quantitative trading has become an increasingly popular and widely adopted modern investment approach in the global financial markets. By leveraging mathematical models, statistical analysis, and computer algorithms, it transforms vast amounts of market data into executable trading strategies, helping investors make more rational and precise decisions in a complex and ever-changing market environment. Compared to…
Stock Volatility Trading Strategies
In the stock market, volatility is an indicator that measures the degree of price fluctuation. It reflects how much a stock’s price has risen or fallen over a period of time. The higher the volatility, the greater the price movement; conversely, lower volatility means relatively smaller price changes. Volatility is critically important for stock trading…
Chinese Stock Code Formats and Trading Rules
China has several major stock exchanges: Stock code formats in China vary by exchange and stock type. Typically, you can identify the type of stock based on the prefix or structure of its code. Below are common coding rules and the corresponding stock types: Stock Type Code Format Exchange A-shares Starts with “6” or “0”…
Average Directional Index (ADX) Explained
Whether you’re trading stocks, futures, forex, or cryptocurrencies, you’ve probably heard people talking about market trends. But the question is: how strong is a trend, exactly? Is there an indicator that can quantify the strength of a trend? The answer is yes—and that’s what we’re covering today: the ADX indicator (Average Directional Index). Simply put,…
What is a CFD (Contract for Difference)?
A Contract for Difference (CFD) is a type of financial derivative. It is essentially a wager between two parties facilitated by a CFD platform, where the platform matches buyers and sellers with opposing market views. For example, if you believe the price of gold will rise, you can buy a gold CFD. The CFD platform…
A Complete Guide to the Order Matching Engine
The order matching engine is the heart of any trading system. It consists of several key components, including matching algorithms, data management, and communication interfaces. Its core function is to match buy and sell orders from market participants, execute trades, and generate transaction records. Every day, vast amounts of liquidity flow through financial markets, and…
What is Position Trading?
Everyone has a different investment style, but broadly speaking, investors usually have two options: they can focus on short-term trades to profit from price fluctuations, or concentrate on long-term investments to earn returns from trends. The concept of a “position” is typically refers to long positions—assets you’ve actually purchased and own—whereas “position” can refer to…
Futures Hedging Strategies: From Beginner to Advanced
Futures hedging is a common investment strategy that helps manage risk and generate stable returns. By simultaneously establishing opposite positions in the spot and futures markets, investors can hedge against price volatility and lock in asset value. Whether you’re a novice investor or an experienced trader, understanding and mastering the principles and techniques of futures…
