The long and short of pairs trading


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Aug 27 2024 24 mins   2

Welcome to Episode Five of The Traders Handbook.


In this exciting installment, we dive into the current bullish market environment with the JSE reaching all-time highs and the rand strengthening. As we navigate these dynamic conditions, The Finance Ghost reflects on his recent experience with CFD trading, particularly focusing on a short position in Mr Price and the lessons learned from it.


Joining us once again is Shaun Murison from IG Markets South Africa, who will shed light on the nuances of trading strategies, including the concept of pairs trading versus naked shorts. Shaun will explain how pairs trading works, its benefits, and the associated costs, as well as offer insights into managing risk with stop losses and position sizing.


Whether you're new to trading or looking to refine your strategy, this episode provides valuable guidance and practical tips. Tune in for an informative discussion that aims to enhance your trading skills and decision-making.