Overlay

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Dictionary Says

Definition of 'Overlay'

A management style that harmonizes an investor's separately managed accounts, preventing the formation of inefficiencies. Overlay management uses software to track an investor's combined position from the separate accounts. Any possible portfolio adjustments will be analyzed by the overlay system, which ensures the overall portfolio will remain in balance and prevent any inefficient transactions from occurring.
Investopedia Says

Investopedia explains 'Overlay'

When an investor has separately managed portfolios, that investor is placing assets under the control of different managers. This can cause inefficiencies if the managers begin making transactions that either increase the risk of the overall portfolio, have negative tax effects, or unbalance the investor's positions.

For example, if one of the separately managed account traders purchases an asset and another trader sells it, the investor will be left with a neutral position and two transaction fees. Overlay management seeks to improve the communication between the separate managers, allowing for increases in transaction efficiency.
Search results for

'Overlay'

  • Beginner's Guide To Stockcharts.com: Changing The Chart Type ...

    http://www.investopedia.com/university/how-to-use-stockcharts-financial-software/chart_type.asp
    ... While it may seem curious to have an invisible chart, this type of chart is useful
    when you are trying to stress and overlay instead of the underlying price ...

  • Beginner's Guide To Stockcharts.com: Chart Attributes ...

    http://www.investopedia.com/university/how-to-use-stockcharts-financial-software/chart_attributes.asp
    ... the workbench. Volume - "Overlay" draws volume bars behind the price bars
    with the scale on the left side of the chart. "Separate ...

  • Beginner's Guide To Stockcharts.com: Using The SharpCharts ...

    http://www.investopedia.com/university/how-to-use-stockcharts-financial-software/SharpChartsWorkbench.asp
    ... the workbench. Volume - "Overlay" draws volume bars behind the price bars
    with the scale on the left side of the chart. "Separate ...

  • Beginner's Guide To FXCM: Charting Software | Investopedia

    http://www.investopedia.com/university/how-to-use-forex-capital-markets-fxcm/4.asp
    ... Indicators and price overlays can be added to the chart quickly and easily by using
    the Add Indicator and Price Overlay buttons on the Shortcuts Bar. ...

  • Forex: Gauging Forex Market Sentiment With Open Interest

    http://www.investopedia.com/articles/forex/07/market_sentiment.asp
    ... Figure 1: composite daily chart of euro futures (candlesticks) overlay with
    spot EUR/USD prices (dark blue line). Source: Esignal.com. ...

  • Confirm Forex Momentum With Heikin Ashi

    http://www.investopedia.com/articles/forex/07/heikinashi.asp
    ... Confirming the strength of such a barrier, we overlay the Heikin Ashi
    and focus on the two dojis that have formed on the chart. ...

  • Trading With VWAP And MVWAP

    http://www.investopedia.com/articles/trading/11/trading-with-VWAP-MVWAP.asp
    ... a primer, see Weighted Moving Averages: The Basics.) Calculating VWAP The VWAP
    calculation is performed by the charting software and displays an overlay on the ...

  • Beginner's Guide To Stockcharts.com: Introduction | Investopedia

    http://www.investopedia.com/university/how-to-use-stockcharts-financial-software/
    ... While every type of chart, overlay and indicator is available to all users,
    there are some options reserved only for subscribed members. ...

  • Beginner's Guide To Stockcharts.com: Introduction | Investopedia

    http://www.investopedia.com/university/how-to-use-stockcharts-financial-software/introduction.asp
    ... While every type of chart, overlay and indicator is available to all users,
    there are some options reserved only for subscribed members. ...

  • Beginner's Guide To Stockcharts.com: Indicators | Investopedia

    http://www.investopedia.com/university/how-to-use-stockcharts-financial-software/indicators.asp
    ... Volume - The volume data for a specific ticker. Volume can be displayed
    as an overlay behind price or in its own individual panel. ...

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