High-Frequency Trading: The Tricks of the Trade
The bid/ask spread is the amount by which the lowest offer to sell stock exceeds the highest bid to buy stock.
Equity exchanges are marketplaces where equity securities are traded.
An exchange-traded fund is a security that tracks a market or segment of a market and trades daily on a securities exchange.
Correlation measures how closely two securities trade in relation to one another .
Put options provide the owner with the right to sell a specified amount of a security at a specific price and at a specific time.
A Note about Risk: Investing involves risk, including the possible loss of principal. The value of investments in equity securities will fluctuate in response to general economic conditions and to changes in the prospects of particular companies and/or sectors in the economy. Investments in small companies involve greater risks not associated with investing in more established companies, such as business risk, significant stock price fluctuations, and illiquidity. No investing strategy can overcome all market volatility or guarantee future results.
The opinions in the preceding commentary are as of the date of publication and subject to change based on subsequent developments and may not reflect the views of the firm as a whole. This material is not intended to be relied upon as a forecast, or research or investment advice regarding a particular investment or the markets in general, nor is it intended to predict or depict performance of any investment. This material is being provided as general information only and is not intended to be legal or tax advice. Investors should not assume that investments in the securities or sectors described were or will be profitable. This document is prepared based on information Lord Abbett deems reliable; however, Lord Abbett does not warrant the accuracy or completeness of the information. Investors should consult with a financial advisor prior to making an investment decision.