Matrix Trading

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Dictionary Says

Definition of 'Matrix Trading'

A fixed-income trading strategy that looks for discrepancies in the yield curve, which an investor can capitalize upon by instituting a bond swap. Discrepancies come about when current yields on a particular class of bond (corporate, municipal, etc.) don't match up with the rest of the yield curve or its historical norms.
Investopedia Says

Investopedia explains 'Matrix Trading'

An investor performing a matrix trade could be looking to profit purely as an arbitrageur - by waiting for the market to "correct" a yield spread discrepancy - or by trading up for free yield, for example, by swapping debt with similar risks but different risk premiums.  

Yield curves can be thrown off historical patterns for any number of reasons, but most of those reasons will have a common source: uncertainty about the future of financial markets.  Individual classes of bonds may also be inefficiently priced for a period of time, such as a high-profile corporate default that sends shock waves through corporate debt with similar ratings.
Search results for

'Matrix Trading'

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    ... Calculation.). Bottom Line Heavy construction isn'ta glamorous business; what
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  • Leveraging Leverage For Bigger Profits

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    ... February 24 2010 | Filed Under ยป Active Trading, Home Equity, Investment, Mortgages,
    Stocks. ... It Works Here is an example of a leverage matrix for illustrative ...

  • Game Theory: Beyond The Basics

    http://www.investopedia.com/articles/financial-theory/09/game-theory-beyond-basics.asp
    ... Proponents of game theory often tabulate the different outcomes in what is called
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  • Tic-Tac-Toeing Your Way To Better Returns

    http://www.investopedia.com/articles/trading/08/point-and-figure-chart.asp
    ... (For more on filtering out noise, read Trading Without Noise ... The chart resembles
    a tic-tac-toe matrix of Xs and Os, but when analyzed, the chart gives a solid ...

  • Options Greeks: Gamma Risk and Reward | Investopedia

    http://www.investopedia.com/university/option-greeks/greeks5.asp
    ... When you incorporate a Gamma risk analysis into your trading, however, you learn
    that two ... 110 call showing a Gamma of 5.58, the highest in the entire matrix. ...

  • Market-Based Asset Allocation Lowers Your Risk

    http://www.investopedia.com/articles/financial-theory/09/asset-allocation-market-conditions.asp
    ... And then there are the options in between, also shown in the matrix. ... Matrix of
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  • Tips For Series 7 Options Questions

    http://www.investopedia.com/articles/professionaleducation/06/Series7Options.asp
    ... the market on the final trading day before expiration, XYZ stock is trading at 47 ...
    Use the matrix to verify desired movement - bullish, wants the market to rise; ...

  • Diversification: Protecting Portfolios From Mass Destruction

    http://www.investopedia.com/articles/financial-theory/09/uncorrelated-assets-diversification.asp
    ... It's All About (Asset) Class and Choose Your Own Asset Allocation Adventure.) Making
    the Right Move: Using a Correlation Matrix Statisticians use price data to ...

  • Options Greeks: Theta Risk and Reward | Investopedia

    http://www.investopedia.com/university/option-greeks/greeks4.asp
    ... For option buyers, therefore, the pain of slowly eroding your trading capital sours
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  • Delphi Financial Group Continues To Grow

    http://stocks.investopedia.com/stock-analysis/2011/Delphi-Financial-Group-Continues-To-Grow-DFG-FFG-HGIC-HCC-MKL0209.aspx
    ... provides excess workers' compensation insurance for self-insured employers and Matrix
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