Author: Daniel Chang
Daniel Chang
Daniel Chang's passion for finance and technology has driven his career in the financial markets. With a background in both quantitative analysis and market strategy, Daniel excels at breaking down complex market movements into actionable insights. He has worked with leading financial institutions and trading platforms, where he has contributed to the development of innovative trading tools and educational content.
Introduction Statistical arbitrage (Stat Arb) is a trading strategy that uses quantitative models and statistical relationships to exploit price inefficiencies between currency pairs. Unlike traditional arbitrage, which relies on direct price differences, statistical arbitrage takes advantage of historical price correlations and deviations. In forex markets, where currencies often move in pairs, traders can use statistical models to identify short-term mispricings and profit from mean reversion or divergence strategies. This guide explains how statistical arbitrage works, key trading strategies, and how to apply it in forex trading. What is Statistical Arbitrage? Statistical arbitrage involves using historical data, mathematical models, and algorithms to identify pairs of currencies that usually…
Breakout trading is one of the most effective strategies for capturing strong price movements in financial markets. It’s used in forex, stocks, crypto, and commodities to identify opportunities when the price moves beyond key levels. This guide will cover everything from the basics to advanced strategies, helping traders understand how to master breakout trading. What Is Breakout Trading? Breakout trading is a strategy that involves entering a trade when the price “breaks out” of a defined support or resistance level. When this happens with momentum, it can signal the start of a new trend. The goal is to enter early…
The U.S. government is moving to cut off Cambodia-based Huione Group from the American financial system, citing serious concerns over its alleged involvement in laundering billions of dollars tied to cybercrime and online fraud schemes. In an announcement made Thursday, the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Treasury Department, labeled Huione Group as a “primary money laundering concern.” As part of the proposed action, American banks and financial institutions would be barred from establishing or maintaining any correspondent accounts with the firm. This proposal has now entered a 30-day public review period before it can be…
In early Asian trading on Monday, crude oil prices took a sharp hit, sliding more than $2 per barrel. The drop follows fresh developments from OPEC+, which has decided to accelerate its plans to ramp up oil production raising alarms over potential oversupply in the global market. By 2240 GMT, Brent crude had plunged $2.04, or about 3.33%, settling at $59.25 a barrel. Meanwhile, U.S. West Texas Intermediate (WTI) crude fell even further, dropping $2.10 or 3.60%, to land at $56.19 per barrel. Both benchmarks hit their lowest levels since April 9 as trading kicked off Monday. This latest slump…
The U.S. dollar has seen a mild recovery recently, lifted by renewed optimism surrounding trade discussions that could shape the next phase of the Trump administration. However, deeper concerns about the dollar’s long-term stability and America’s financial reliability are expected to keep the greenback from gaining too much ground, according to a recent analysis from Macquarie. While upbeat headlines about trade have sparked some short-term positivity, analysts at Macquarie caution that underlying fears about the U.S. being a financial risk particularly as a counterparty are far from resolved. “A significant part of the dollar’s recent weakness, especially through March and…
Tesla stock saw a modest uptick on Thursday morning after the electric vehicle giant publicly denied a report that it was actively searching for a replacement for CEO Elon Musk. The Wall Street Journal had published a story suggesting that the board was exploring leadership alternatives earlier this year, but Tesla swiftly pushed back against the claim. Robyn Denholm, Tesla’s chairwoman, issued a statement on the company’s official X (formerly Twitter) account, clarifying that Musk remains firmly at the helm. “Elon Musk is the CEO of Tesla, and the Board is fully confident in his leadership and his ability to…
U.S. stock markets saw slight upward movement on Monday, with the Dow Jones Industrial Average and S&P 500 closing with small gains, while the Nasdaq slipped just a bit. Investor sentiment was shaped by recent remarks from U.S. Treasury Secretary Scott Bessent and anticipation ahead of earnings reports from America’s largest tech giants, which collectively hold a market valuation of roughly $20 trillion. The Dow finished the session up by 114 points, or 0.28%, and the S&P 500 edged higher by 3 points, or 0.06%. Meanwhile, the Nasdaq Composite dipped by 17 points, marking a modest decline of 0.1%. Optimism…
Standard Chartered has adjusted its view on the U.S. dollar, forecasting a weaker trajectory than initially expected. The multinational bank, known for its strong presence in Asia, now anticipates the EUR/USD pair will climb to 1.16 by the conclusion of the second quarter in 2025. This marks a significant increase from its previous forecast of 1.06. StanChart also expects the euro to maintain that level through the end of next year, revising its prior year-end estimate from 1.04. This upgraded outlook is based on a broader trend of U.S. dollar softness against other major currencies in the G10 group. The…
WASHINGTON – U.S. Treasury Secretary Scott Bessent on Sunday refrained from confirming President Donald Trump’s recent claims that discussions over tariffs with China are actively happening. Bessent also indicated he was unaware if Trump had directly spoken with Chinese President Xi Jinping. Last week, the Trump administration hinted at a willingness to ease tensions in the ongoing trade war between the United States and China, a conflict that has stoked global recession fears. Trump himself suggested that negotiations regarding tariffs were underway and claimed he and Xi had been in contact. However, officials in Beijing have firmly denied that any…
A potential suspension of U.S. ethane imports by China, driven by escalating trade tariffs, could spark a significant decline in ethane prices and put added pressure on Permian Basin gas infrastructure, according to analysts from Bank of America. Currently the largest importer of ethane worldwide, China finds U.S. ethane less competitive against alternatives like naphtha due to existing tariffs. Despite the possibility of a resolution through trade negotiations or waivers, neither the Biden administration nor Chinese authorities have taken action so far. Should Chinese imports come to a standstill, American producers would have little choice but to reintegrate excess ethane…