AI For Trading Of stocks (1)

Common and Preferred Stock

Note that for this Nanodegree program, when we discuss stocks, we’re primarily referring to common stock as opposed to preferred stock. This is because preferred stock actually behaves more like a bond (which we’ll cover next), so preferred stock prices may tend to be more stable relative to common stock of the same company. Usually when you see stock data and financial news, it’s referring to common stock.

Stock Prices

Options: calls, puts, American, European

Options give the owner the right to buy or sell at the strike price (a fixed price that is determined when the option is created), on or before an expiration date.
期权赋予所有者在到期日或之前以执行价格(在创建期权时确定的固定价格)进行买卖的权利。

The most common are call options and put options。
最常见的是看涨期权和看跌期权。

Call options give the right to buy at the strike price; put options give the owner the right to sell at a fixed price
看涨期权给予以执行价格购买的权利;看跌期权给予所有者以固定价格出售的权利。

Some options allow the holder to “exercise” (buy or sell) at the strike price any time up to the expiration date
一些期权允许持有人在到期日之前的任何时间以执行价格“行使”(买入或卖出)

·These are called “American options” by convention, even though this doesn’t mean that the options are traded in the Americas
按惯例,这些被称为“美国期权”,尽管这并不意味着期权在美洲交易。

Another class of options only allows the holder to exercise the option at the expiration date, but not earlier. These are called “European options” by convention, but again, European options don’t necessarily have to be traded in Europe.
另一类期权只允许持有人在到期日行使期权,但不能更早。按照惯例,这些被称为“欧洲期权”,但同样,欧洲期权不一定必须在欧洲进行交易。

Forwards and Futures

Futures and forwards contracts are similar, in that a buyer and seller both agree to make a future transaction at a predetermined price.
期货和远期合约类似,因为买方和卖方都同意以预定价格进行未来交易。

Futures are standardized contracts that can be traded on a futures exchange, so this may be what people think of when discussing “forwards and futures”.
期货是可以在期货交易所交易的标准化合约,因此这可能是人们在讨论“前瞻和期货”时所想到的。

Forward contracts are usually privately determined contracts between two parties. So an investor can trade futures contracts, but forward contracts are not designed to be traded like futures.
远期合约通常是双方之间私下确定的合约。因此,投资者可以交易期货合约,但远期合约并非旨在像期货一样交易。

Public versus private equity

Public equity refers to stocks that can be traded on a stock exchange. Private equity refers to ownership in private companies, so the owners of private equity do not trade their shares on a stock exchange.
公共股权是指可以在证券交易所交易的股票。私募股权是指私营公司的所有权,因此私募股权的所有者不会在证券交易所交易其股票。

Our course is primarily focused on public equity, which we’ll refer to as stocks, since the ability to buy and sell freely enables us to adjust our investments based on new or time-sensitive information.
我们的课程主要关注公共股权,我们将其称为股票,因为自由买卖的能力使我们能够根据新的或时间敏感的信息调整我们的投资。

Market Bubbles

A recent example of a bubble is bitcoin, which rose from from under $1,000 per coin in January of 2017, to over $17,000 per coin by December of the same year, before dropping to about $6,000 by June of 2018.
最近一个泡沫的例子是比特币,从2017年1月的每枚硬币低于1,000美元,到同年12月的每枚硬币超过17,000美元,然后在2018年6月降至约6,000美元。 -_-!!!

为者常成,行者常至