Confluence

AAA

DEFINITION of 'Confluence'

The combination of multiple strategies and ideas into one complete strategy. Confluence occurs when two separate ideas/strategies are used together to form an investment strategy that is in line with an investor's risk profile and goals. This term can also be used when doing technical analysis, by looking at charts and developing levels where different indicators are combined to help identify possible opportunities.

INVESTOPEDIA EXPLAINS 'Confluence'

Confluence can be seen when brokers combine professionally managed third-party accounts with a value investing account. Brokers have used professionally managed accounts in the past, and they now have the option to research and invest in stocks they are confident in while still allowing professionals to manage a portion of the account. This new type of portfolio management is a confluence of two strategies.

RELATED TERMS
  1. Indicator

    Indicators are statistics used to measure current conditions ...
  2. Convergence

    A movement in the price of a futures contract toward the price ...
  3. Investment Strategy

    An investor's plan of attack to guide their investment decisions ...
  4. Technical Analysis

    A method of evaluating securities by analyzing statistics generated ...
  5. Portfolio Management

    The art and science of making decisions about investment mix ...
  6. Fintech

    Fintech is a portmanteau of financial technology that describes ...
Related Articles
  1. Mutual Funds & ETFs

    How To Choose The Right ETF?

    Choosing the right ETF really isn’t that complicated. If you stay focused on a few key areas, you may find the experience to be much easier.
  2. Stock Analysis

    A Trader's Look at the S&P 500

    Moving averages are sending an important signal, and it's probably not what you think.
  3. Chart Advisor

    Is Now the Time to Invest in North America?

    Bullish chart patterns across the North American markets suggest that now might actually be a wise time to allocate closer to home.
  4. Chart Advisor

    These Oil Service Stocks Are Ready For A Move Higher

    In the oil services sector, active traders have been trying hard to establish a floor and the double bottom pattern that is appearing on the chart suggests that a short-term reversal could be ...
  5. Trading Strategies

    The Top Five Stocks For Novice Swing Traders

    New to Swing Trading? Here are the top five stocks recommended for swing trading.
  6. Bonds & Fixed Income

    How to Diversify with Muni Bond ETFs

    Thinking of diversifying with bonds? Consider these muni bond ETFs.
  7. Chart Advisor

    These ETFs are Breaking Out of Chart Patterns Now

    Three buys and one sell; here are four ETFs breaking out of chart patterns right now.
  8. Trading Strategies

    Capitalize On Collars To Enhance Your Trades

    Trade collaring measures current technicals and makes swift adjustments to account for environmental changes.
  9. Trading Strategies

    Look At The Whole Picture To Manage Whipsaws

    Look at past action to organize a whipsaw’s volatile characteristics, identifying harmonic levels that may offer low risk entry prices.
  10. Chart Advisor

    Profit From the Range in These Stocks and ETFs

    These four stocks just bounced off range support, offering profit potential to the upside.

You May Also Like

Hot Definitions
  1. Fiat Money

    Currency that a government has declared to be legal tender, but is not backed by a physical commodity. The value of fiat ...
  2. Interest Rate Risk

    The risk that an investment's value will change due to a change in the absolute level of interest rates, in the spread between ...
  3. Income Effect

    In the context of economic theory, the income effect is the change in an individual's or economy's income and how that change ...
  4. Price-To-Sales Ratio - PSR

    A valuation ratio that compares a company’s stock price to its revenues. The price-to-sales ratio is an indicator of the ...
  5. Hurdle Rate

    The minimum rate of return on a project or investment required by a manager or investor. In order to compensate for risk, ...
  6. Market Value

    The price an asset would fetch in the marketplace. Market value is also commonly used to refer to the market capitalization ...
Trading Center