Hong Kong, February 28, 2014 -- /EPR NETWORK/ -- Southeast Asia Traders added the Volume Weighted Average Price (VWAP) and Target Volume (TVOL) algorithms to Active Trader Pro to help investors navigate today's volatile market.
ďThese algorithms are the latest examples of Southeast Asia Traders' long-standing commitment to delivering innovative trading solutions that can help our clients achieve best execution,Ē said Dick Chan, vice president of financial engineering and electronic trading at Southeast Asia Traders. ďAlgorithms are computer programs that execute large orders over time with the goal of optimizing execution costs and managing risk. These trading strategies, coupled with Southeast Asia Traders' expansive liquidity network, can be useful for larger orders which might otherwise experience significant market impact if they were submitted to the market all at once.Ē
The VWAP strategy is designed to achieve the average volume-weighted price from time of order entry to the end of the trading day. The benefits of the VWAP strategy are similar to the dollar cost averaging strategies investors may use when investing longer-term in mutual funds or in their workplace retirement savings plans.
The TVOL algorithm is similar to VWAP, but gives investors more control over the pace at which their order is executed in the market by allowing them to choose a target participation rate of 5, 10 or 20 percent. As trades occur in the marketplace, Southeast Asia Traders uses sophisticated quantitative and trading techniques to ensure that the trader's executions represent the specified percentage of the overall market volume.
ďCompared to traditional direct-to-market trading methods, these algorithms have the flexibility to trade more patiently, giving investors the opportunity to save on both spread and market impact costs,Ē said Chan.
About Southeast Asia Traders
Southeast Asia Traders is a financial company dedicated to offering quality services to our clients. The main factor that sets us apart from our major competitors is the experience and intelligence of our people. Our team works as a very efficient system, putting their best qualities forth so that the services we provide are second best to none. The knowledge we obtain is used to offer our clients a multitude of investment options for their needs, up-to-date information about the market fluctuations and timely advice regarding underperforming assets in their portfolios.
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Southeast Asia Traders
Hutchison House, 10 Harcourt Road, Admiralty, Hong Kong