logo
logo
Sign in

WHAT IS QUANTITATIVE TRADING? MAJOR COMPONENTS OF QUANTS TRADING?

avatar
jessica
WHAT IS QUANTITATIVE TRADING? MAJOR COMPONENTS OF QUANTS TRADING?

Quantitative trading is a modern style of trading that is based on research and historical data. Traders can change their ideas into strategies through quants trading systems. This article consists of details about quantitative trading. First, check here the key components of quants trading. Then, learn the difference between quantitative finance and manual trading. Here we also talk about quantitative trading strategies and systems. 

Quantitative trading slowly became popular in the financial markets. It is a holistic method of trading efficiently in a quick and dynamic market. This article teaches how to use quants trading strategies to perform trade more efficiently to earn remarkable profits. It is better than manual trading. In the modern era, traders prefer speed execution and automated trading in place of manual trading. 

What is quantitative trading?

Quantitative trading is used for moving long and short financial instruments while their price is not available as we are thinking. Apart from manual trading, the decision-making process is done manually, and trade will be executed automatically through machines. 

For example, If the images of Walmarts provided by satellite showing an increment in the ratio of parked cars (which indicates the rise in shoppers ), the costs of Walmart will increase. On the other hand, if the cost doesn’t increase, traders purchase the stock in the hope that it will rise in future (mainly during the following quarterly earnings declaration).

Where can we use Quants Trading? 

We can apply quantitative trading while predicting the market opportunities that it shows, again and again, a similar trend. Traders use manual trading in case the market opportunities are not determined.

The reason why we need Quantitative Trading

We can use quants trading when we need to:

  • Collect a large amount of data (web scraping)
  • Analyse large amounts of data
  • Fire many trades in a short time
  • Analyse data fastly
  • Analyse images or text (through machine learning)
  • Fire a trade where you need a precise price
  • Fire a trade with lightning-quick reactions

Read To Know More

collect
0
avatar
jessica
guide
Zupyak is the world’s largest content marketing community, with over 400 000 members and 3 million articles. Explore and get your content discovered.
Read more