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. Convergence

    A movement in the price of a futures contract toward the price ...
  2. Indicator

    Statistics used to measure current conditions as well as to forecast ...
  3. Technical Analysis

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

    The art and science of making decisions about investment mix ...
  5. Investment Strategy

    An investor's plan of attack to guide their investment decisions ...
  6. Discretionary Investment Management

    A form of investment management in which buy and sell decisions ...
Related Articles
  1. Time To Take Profits On These 4 Rallying ...
    Chart Advisor

    Time To Take Profits On These 4 Rallying ...

  2. What Can The Monte Carlo Simulation ...
    Fundamental Analysis

    What Can The Monte Carlo Simulation ...

  3. What is the difference between enterprise ...
    Investing

    What is the difference between enterprise ...

  4. How is the Accumulative Swing Index ...
    Charts & Patterns

    How is the Accumulative Swing Index ...

Hot Definitions
  1. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  2. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  3. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  4. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  5. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  6. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
Trading Center