Category: Foreign Exchange

Political market making

It is challenging to understand how to model external shocks when trading financial markets. However, in recent years, it has become particularly notable that these risks, such as Brexit, the election of Trump, or coronavirus can greatly impact markets. Hence, we need to have a way to model them. In this paper we investigate the…

Correlations and trading

Correlation not causation. Ok, we’ve heard that thousands of time before. The difficulty is that we cannot simply ignore correlation if we are trading financial markets. The relationships between different assets and other data is often crucial to forecasting the market. If we were forced to ignore it, you’d end up ignoring so much data…