Exchange-Offered Online Education

Article excerpt

We are in the age of technology where it is pertinent to pick up Internet jargon, and if you're really into trading, then you also need to keep up with all the latest products. Exchanges encourage all traders to visit their Web sites where many of them offer free online courses on Well-known and new products like single stock futures (SSF).


One of the newest services on the market, launched in January, comes from the SSF exchange OneChicago. OneChicago's Analytics Tool is a securities research and analysis system available free for registered users at The service allows users to perform quantitative research of potential securities trades using fundamental data and technical analysis.

The Technical Analysis tab offers selections like new highs and lows, moving average crosses, pricing snapshot and historical volatility. You also can get stock-to-commodity correlations as well as correlations of stock-to-stock indexes or sectors.

In the example shown, crude oil (CL) was correlated to all futures within a six-month time frame (this is the recommended time-frame for these correlations). We can see that soybeans/no. 1 yellow had an 85% correlation with crude oil during that time. That means that for every one point move in crude, there was an 85% likelihood soybeans/no. 1 yellow would move in that direction over the period studied, and while there is no guarantee that a high correlation will continue, it's worth taking a look at.

Underneath the best correlated, the worst correlated indexes or sectors are shown. This is for traders who are looking at pair strategies, who would go long on the stock they looked up and then short one of the negatively correlated ones. Under Derivative instruments you can even correlate a futures contract to a sector.

The Company Financials tab will give you access to a fundamental screen, stock returns and report dates, actual EPS performance and balance sheets.

"One thing we found in the case of Microsoft, for eight out of the last nine years, Microsoft has been down five days after the release of the 2nd quarter reports, and it did indeed happen this July when those reports came out," says Peter Borish, senior managing director, business development at OneChicago. …