Understanding evaluation of the risk-to-reward for the pairs
Being able to read the market
Long vs. Short position sizing and management
Low Priced Stocks
Exact Trades - Entry, Target, Stop with 80% Accuracy
Traders have hundreds of technical tools and price action strategies to help them take advantage of price trends and ranging markets, but pairs trading is something completely different. Pairs trading uses correlations and divergences between two stocks in an attempt to capture a profit. While it isn't riskless, by understanding how pairs trading works, how you control risk and how you manage profits, it's a great tool to add to your trading arsenal because the strategy isn't dependant on market direction.
Pair trading is a market neutral strategy which enables traders to be profitable in all market conditions such as uptrend, downtrend or sideways movement. This strategy involves statistical arbitrage of two highly correlated stocks preferably in the same segment having the same macro dynamics, which has temporarily diverged i.e. one stock moves up while the other moves down, the pairs trade would be to short the outperforming stock and to long the underperforming one, betting that the pair would converge. The divergence in the pair could be caused by temporary supply/demand changes, large buy/sell orders for one stock, reaction for important news about one of the companies, and so on.
Pairs trading is a market-neutral strategy in its most simple form. The strategy involves being long (or bullish) one asset and short (or bearish) another. If properly performed, the investor will gain if the market rises or falls. Pairs Trading reveals the secrets of this rigorous quantitative analysis program to provide individuals and investment houses with the tools they need to successfully implement and profit from this proven trading methodology. Pairs Trading contains specific and tested formulas for identifying and investing in pairs, and answers important questions such as what ratio should be used to construct the pairs properly.
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A practical approach for pair trading & analysis
Our courses offer students the opportunity to customize their learning experience, engage socially and intellectually, and achieve academic excellence.
Trading concept and charts are explained with interactive audio video lectures. Each module will enhance your knowledge to understand the concept under the guidance of our experts with scheduled online class-room and doubt clearing sessions.
Live Doubt Clearing Sessions and practical sessions as per current market scenario also scheduled time to time. Where students can disucess with teacher and students that create very good interactive sessions. All sessions are also available in recording format for life time.
The course is easy accessible with time flexibility as it is available in your laptop or desktop 24*7 by DVDs (No Internet Access required). There is no waiting for the class and you get lifetime access on our learning portal to join live classes and recordings.
You get lifetime access to the Learning Portal. The Class recordings and presentations can be viewed online from the learning portal. Also, your login will never get expired.
Our course content is designed by industry experts who have decades of real trading experience keeping in mind the basic requirement of a trader or a broker.
The potential return on investment is significant. The course will add value in their trading decision and one can easily recover their invested money during their course period.
Our 24x7 expert support team will be available to help through email, phone or Live Support for any issues you may face during the Lab Hours.
There are continuous assessments throughout the course duration. Such assessments are in the form of quizzes and assignments & will encourage constant learning and self assessment. We certifies you based on the Assignments & Quizzes review by our Expert.
Pairs trading is a market-neutral strategy that boasts several advantages:
In Pair Options trading the overall market movement does not affect your trade and your profit only depends on the relative performance of the stocks. If you correctly predict which stock within a stock pair will expire in the money, it does not matter even if the market went down. Pair Trading significantly reduces the market risk and enables you to focus on the stocks and not the markets, which is especially important in today's volatile and unpredictable markets.
Pair Trading has only three parameters to choose from: position, option duration and investment amount. There are only two possible results: "In the money" or "Out of the money". If you are right about the better performing stock, you will receive the predetermined payout. If the other stock in the pair performs better than the one you chose, only the initial deposit on the stock pair will be deducted from your account. Payout amounts are known before you place an order.Once you purchase an option, you will see your position payout in real time.
Another attractive feature of pairs trading is the ability to profit whether the market is going up, down or sideways. This is because the strategy does not depend on market direction, but on the relationship between the two instruments. To clarify, long-only traders (who are bullish) can only profit from rising markets. Short-only traders (who are bearish) profit when the markets are falling. To a pairs trader, the market direction does not matter; it’s the relative performance of the two instruments that determines each trade’s outcome.
Directional risk involves exposure to the direction of price movements. For example, a long position is exposed to the risk that stock prices will move down. In pairs trading, a second instrument acts as a hedge against the first, thereby removing the directional risk. Because profits depend on the difference in price change between the two instruments, rather than from the direction in which each moves, directional risk is removed.
In Pair Trading, options come in two distinct "categories": Fixed Pair Options and Floating Pair Options. With Floating Pair Options you can close your position before the option expires and take early profits or stop your loss. Each type of option has a different performance value based on the start time and market conditions. There are 50 pairs to choose from on stock exchanges worldwide.
Pair Options rate of returns for each stock is correlated with the inherent risk in the position. Therefore, a higher return rate results in a higher payout if your trade expires in the money, but with a higher risk. When you open a Floating option position there will be a higher rate of return for the stock that is out of the money and a lower rate of return for the "leading" stock that is already in the money. If you want to lower your risk you may choose the stock that is in the money. However, if you prefer a higher risk and the chance for a higher return you may pick the stock which is out of the money.
Trading in Pair Options offers a fixed reward and great choice: risk is always limited and known. For each trade, only the amount you invest in the trade may be deducted from your account if your option expires out of the money. Additionally, you can earn high returns when the markets are lower as well as higher.
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Here you will find the videos for basic option trading learning, course descriptions, testimonials, risk managements, company profile etc. even more faster and easy. These videos help you to understand terminology used in Technical Analysis and Option Trading.
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