FAQ

Artificial intelligence (AI) is the ability of a computer or machine to perform tasks that would normally require human intelligence, such as learning, problem solving, decision making, and natural language processing.

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Machine learning is a type of artificial intelligence (AI) that allows software applications to become more accurate at predicting outcomes without being explicitly programmed to do so. Machine learning algorithms use historical data as input to predict new output values.

In other words, machine learning algorithms are designed to recognize patterns in data and use these patterns to make predictions or decisions without being explicitly programmed to do so. Machine learning is an important subfield of AI that has numerous applications in a wide range of industries, including finance, healthcare, and e-commerce.

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A trading bot is a software program that uses algorithms to analyze market data and execute trades automatically. They are designed to help traders make informed decisions about when to buy or sell assets in financial markets, such as stocks, bonds, currencies, and commodities.

Some trading bots use simple algorithms to execute trades based on pre-determined rules, while others use more advanced machine learning techniques to make decisions based on market trends and patterns. Some traders use trading bots to supplement their own trading activities, while others use them as a way to fully automate their trading strategies.

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An actively managed certificate (AMC) is a financial product that combines the features of a traditional certificate of deposit (CD) with the investment strategies of an actively managed fund. AMCs are issued by banks and other financial institutions and offer investors the opportunity to earn higher returns on their money through professional asset management.

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The risk/reward ratio is a measure used by investors to evaluate the potential reward of an investment relative to the risk of losing capital. It is used to assess the expected return and risk of a particular trade or investment opportunity.

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A limit order is a type of order that allows an investor to specify the price at which they want to buy or sell a stock. There are two types of limit orders: a buy limit order, which specifies that the order should be executed at the limit price or lower, and a sell limit order, which specifies that the order should be executed at the limit price or higher.

A stock, also known as a share or equity, is a type of security that represents ownership in a company. It can be bought and sold on the open market through stock exchanges, and these transactions are regulated to protect investors. In other words, a stock is a financial instrument that represents a share of ownership in a company.

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Day trading is a financial trading strategy that involves buying and selling financial instruments, such as stocks, within the same trading day. Day traders aim to capitalize on short-term price movements and typically hold their positions for a few hours or less.

Day traders may use various strategies and techniques, such as technical analysis and chart patterns, to make informed trading decisions. Day trading can be risky, as it involves taking on significant amounts of leverage and requires close monitoring of the markets. It is important for day traders to have a solid understanding of the financial instruments they are trading and to carefully manage their risk. Day trading is not suitable for everyone and can be very risky, especially for inexperienced traders.

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Quantitative Finance is a field that uses mathematical models and large datasets to analyze financial markets and securities. It involves finding the value of financial instruments, managing risk in investment portfolios, and making investment decisions based on computational simulations.

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A fintech company is a financial technology company that uses technology to improve financial services and processes. Fintech companies typically operate in the financial sector, but they can also be found in other sectors that use financial technology, such as retail, healthcare, and government.

These companies often use innovative technologies such as artificial intelligence, blockchain, and big data to create new products and services or to improve existing ones. Some examples of fintech companies include online lending platforms, payment processors, financial management software, and cryptocurrency exchanges.

MA Titan is a data finance company that focuses on developing trading algorithms using artificial intelligence. The company is headquartered in the United States.

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Behavioral finance is a branch of behavioral economics that suggests that psychological factors and biases play a role in the financial behaviors of investors and financial professionals. These influences and biases may be responsible for unusual market trends, particularly in the stock market. Given the importance of behavioral finance in investing, the Securities and Exchange Commission has dedicated staff to this area.

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Algorithmic trading, also known as automated trading, black-box trading, or algo-trading, involves using a computer program to execute trades based on a set of predetermined instructions or an algorithm.

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Investments are products that are purchased with the expectation that they will produce income or profit, or both, and there are three types. Ownership investments, such as stocks or real estate, are the most volatile and profitable class.

Cash equivalent investments can quickly be converted into cash. And lending investments are generally less risky.

• The money market is a short-term lending system. Borrowers tap it for the cash they need to operate from day to day. Lenders use it to put spare cash to work.
• The capital market is geared toward long-term investing. Companies issue stocks and bonds to raise money to grow their businesses. Investors buy them to share in that growth.
• The money market is less risky than the capital market while the capital market is potentially more rewarding.

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Liquidity refers to the ease with which an asset or security can be converted to cash in the market. It is an important concept in finance, and there are two types of liquidity risk: funding liquidity or cash flow risk, and market liquidity risk, also known as asset/product risk.

Understanding these risks is critical for financial institutions and investors to manage their exposure and make informed investment decisions.

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A stop-loss order is a type of order that is placed with a broker to buy or sell a specific stock when it reaches a certain price. The purpose of a stop-loss order is to limit an investor's potential loss on a security position. For example, if an investor buys Microsoft (MSFT) at $20 per share and then enters a stop-loss order for $18, their shares will be sold at the prevailing market price if the stock falls below $18.

This limits their potential loss to 10%. Stop-limit orders are similar to stop-loss orders, but they have a limit on the price at which they will be executed. In a stop-limit order, there are two prices specified: the stop price, which triggers the order to be converted to a sell order, and the limit price, which is the maximum price at which the sell order will be executed. If the stock price falls below the stop price, the order becomes a limit order that will only be executed at the limit price or better.

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Effective risk management is an essential part of trading. It helps to minimize losses and protect traders' accounts from being wiped out completely.

There are several strategies that traders can use to manage risk, including setting stop-loss and take-profit points, diversifying investments, and hedging positions. By being strategic and objective in their approach to risk management, traders can stay focused and keep their emotions in check, increasing the chances of success in the market.

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Robo trading is a type of systematic trading that relies on predefined rules and algorithms to execute trades. It is designed to minimize the role of human emotions in the trading process and reduce the likelihood of errors caused by human intervention. Because it is automated, robo trading can often be completed more quickly and with greater accuracy compared to manual trading.

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Indicators are numerical values that are used to assess current conditions and forecast future trends in the financial or economic markets.

Economic indicators, in particular, are statistical metrics that measure the overall performance or specific sectors of an economy. In the context of technical analysis, indicators are mathematical calculations based on a security's price or volume that are used to predict future prices.

Additionally, key performance indicators (KPIs) are quantifiable measurements that are used to evaluate a company's progress towards a specific goal or objective. Some commonly used indicators of a company's profitability include gross margin, operating margin, net margin, and return on equity (ROE).

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Copy trading is a method in which traders follow and replicate the trades of other successful investors in the financial markets. It differs from mirror trading in that it involves copying specific trades rather than entire strategies.

Copy trading can be useful for traders who do not have the time to analyze the markets themselves, and it is often focused on short-term trading using assets such as foreign exchange and contracts for difference.

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AI trading is a computerized system that uses artificial intelligence and sophisticated algorithms to execute trades and manage investments according to preset rules. These rules can be established by investors and traders to automate and streamline the investing process. By removing the emotional element of investing, AI trading can help ensure that decisions are based on logic and data rather than on subjective factors. 

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Buying on margin is a method that enables traders to trade without having the full amount of cash on hand. By borrowing money from a brokerage firm, traders are able to purchase more than they have in cash, paying back the difference plus interest.

When this method is applied to day trading, the inherent dangers become even greater. Due to the increased risk, there is the possibility of high returns, but there are no guarantees.

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There are many reasons why an algorithm might be considered a better trader than a human:

1. Speed and efficiency: Algorithms can process and analyze large amounts of data much faster than humans can, allowing them to make trading decisions more quickly and efficiently.
2. Consistency: Algorithms follow a set of predetermined rules and do not get tired, emotional, or make mistakes, so they can execute trades consistently and without error.
3. Objective decision-making: Algorithms do not have personal biases or emotions, so they can make decisions based solely on data and market conditions, rather than being influenced by subjective factors.
4. Risk management: Algorithms can be programmed to follow risk management strategies and stop trading when certain thresholds are reached, helping to mitigate potential losses.
5. Cost-effectiveness: Algorithmic trading can be more cost-effective than manual trading, as it does not require the same level of human resources and can be run on low-cost computers.

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Stockholders are given a portion of ownership in a company through stocks, which are also referred to as "equities.

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The stock market is a system of exchanges where shares of publicly traded companies are bought and sold, both on formal exchanges and through over-the-counter (OTC) markets that are regulated. The terms "stock market" and "stock exchange" are often used interchangeably.

In the stock market, traders purchase or sell shares on one or more of the stock exchanges that make up the larger stock market. Two of the most well-known stock exchanges in the United States are the New York Stock Exchange (NYSE) and the Nasdaq.

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Here are the trading hours for some of the world's largest stock markets. (All times listed here represent normal business hours, Monday through Friday, and are in Eastern time.)

• Toronto Stock Exchange (TSX): 9:30 a.m. to 4 p.m.
• Mexico Stock Exchange (BMV): 9:30 a.m. to 4 p.m.
• London Stock Exchange (LSE): 3 a.m. to 11:30 a.m.
• Euronext Paris (EPA): 3 a.m. to 11:30 a.m.
• Frankfurt Stock Exchange (FRA): 3 a.m. to 11 a.m.
• Switzerland Stock Exchange (SIX) 00:00 a.m to 4:00 p.m. A clearing day lasts from 08:00 to 18:15 (CET).
• Tokyo Stock Exchange (TSE): 8 p.m. to 10:30 p.m., 11:30 p.m. to 2 a.m.
• Shanghai Stock Exchange (SSE): 9:30 p.m. to 11:30 p.m., 1 a.m. to 3 a.m.
• Shenzhen Stock Exchange (SZSE): 9:30 p.m. to 11:30 p.m., 1 a.m. to 3 a.m.
• Hong Kong Stock Exchange (HKG): 9:30 p.m. to 12 a.m., 1 a.m. to 4 a.m.

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