Algorithmic Trading - algorithmic trading or automated trading, also known as algo trading and black-box trading is the automated generation of trading orders by a computer program. Widely used now by institutions to small traders, mainly used by the institutions to manage large orders, high frequency trading of market inefficiencies, market making and arbitrage. Tools are now available for small traders to automate their own strategies or lease algo systems from vendors.

Arbitrage -The most common form of this is when an asset is quoted on two different exchanges, arbitrage systems will take any opportunity of mis-pricing and automatically buy the same asset on one exchange and sell on the other. This has the effect of forcing the price on one exchange to match the other.

Buy and Hold - Buy and hold is a long term investment strategy based on the view that in the long run financial markets give a good rate of return despite periods of volatility or decline. This viewpoint also holds that short term trading does not work for small, or unsophisticated, investors so it is better to simply buy and hold.

Contrarian - a contrarian seeks opportunities to buy or sell specific investments when the majority of investors appear to be doing the opposite, to the point where that investment has become mispriced.

Emerging Markets - developed markets are those countries that are thought to be the most developed and therefore less risky. Emerging markets are supposed to provide greater potential for profit, but also greater risk from various factors.

Merger arbitrage - Mergers and Acquistions, the acquirer proposes to purchase the shares of the target company for a certain price in cash or shares or both. Until the acquisition is completed, the stock of the target company typically trades below the purchase price since the merger may fall through. Opportunities exist in this situation for traders, and again if the merger fails.

Momentum - momentum trading can be observed by rising asset prices that have a tendency to rise further.

Portfolio - a portfolio is a collection of investments held by an institution or an individual. By diversifying investments in a portfolio the overall risk is reduced if a big enough mix of assets are held

Trend Following - Traders who subscribe to a trend following strategy do not aim to predict market direction; they simply jump on the trend and ride it.

Value Investing - value investing generally involves buying shares in companies that appear undervalued by some form of fundamental analysis, Warren Buffett is the most well known value investor.




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