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all of the following are considered new trading strategies, except high frequency trading. algorithmic trading? A.high frequency trading. B.algorithmic trading. C.dark pools. D.short selling.

User Micahblu
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1 Answer

6 votes

Final answer:

The correct answer to the question is short selling (D), as it is not a new trading strategy. High-frequency trading, algorithmic trading, and dark pools are relatively newer strategies that make use of advanced technology and methodologies.

Step-by-step explanation:

The question is asking to identify which of the options listed is not considered a new trading strategy. To answer the question:

  • High-frequency trading (HFT) is a form of algorithmic trading that involves executing thousands or millions of orders within seconds, which is indeed a new and advanced form of trading.
  • Algorithmic trading refers to using computer algorithms to execute trades based on pre-set criteria, which is also a relatively new trading strategy that uses complex mathematical models.
  • Dark pools are private forums for trading securities that are not accessible to the public, which is a newer method practitioners use to execute trades without impacting the market before they have been completed.
  • Short selling is the practice of selling securities that the seller does not yet own, in anticipation of buying them back at a lower price in the future; while the technique has been enhanced through technology, it is not considered a new trading strategy as it has been practiced for many years.

Thus, option D, short selling, is not considered a new trading strategy and is the correct answer to the question.

User Schingeldi
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