Challenger banks are small, recently created retail banks that compete directly with the longer-established banks in the country, sometimes by specialising in areas underserved by the “big four” banks (Barclays, HSBC, Lloyds Banking Group, and NatWest Group). See challenger bank on Wikipedia. Challenger banks Aldermore Atom Bank Metro Bank Monzo N26 OakNorth Shawbrook Bank Starling Bank Tandem Bank Investment banks lloydsbanking. [Read More]


Technologies and terminology

HFT A type of algorithmic trading characterized by high speeds, high turnover rates, and high order-to-trade ratios. HFT firms make up the low margins with incredibly high volumes of trades, frequently numbering in the millions. Sophisticated algorithms Co-location Short-term investment horizons Sophisticated technological tools and computer algorithms to rapidly trade securities Proprietary trading strategies carried out by computers to move in and out of positions in seconds or fractions of a second Finance Value at risk (VaR) A derivative is a price guarantee Buyer/seller (counterparties), underlier, future price, future date, Forward, futures, swap, option Liquid - more traded on a single day Fungible - one is as good as another A financial instrument is a standard agreement (contract) that bestows certain financial rights and/or responsibilities to its parties Zero sum games Hedging, manage uncertainty Speculation, wager on uncertainty Taking a view - gambling Financial leverage Market makers, merchants of derivatives arbitrageurs, mispriced security search Trading protocols FIX - Financial Information eXchange OUCH - a digital communications protocol that allows customers of the NASDAQ (National Association of Securities Dealers Automated Quotations) to conduct business in the options market. [Read More]