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When deciding to buy, sell, or hold a particular investment, it can be tempting to simply look at the spot price or volume data and go from there. For those not acquainted with these terms, the spot price of an asset is the current price in the marketplace at which it can be bought or sold for immediate delivery. Volume data quantifies the number of shares traded and, for futures and options, it reveals how many contracts have changed hands.

With social media gaining popularity in the world of financial trading, there is interest in using the sentiment, or opinion, of many people automatically in algorithmic trading.

The idea of making money by exchanging one type of currency with another is well-known. Many Canadians remember a time or two when the Canadian dollar was on par with, or even worth more than, the US dollar, such as in 2007. Canadians revelled at the lower cost of goods south of the border. At the same time, people expected the US dollar to rise in value again, so many held onto their US currency in order to sell it later. Events like these are rare between established countries, and returns are typically low for foreign exchange (FX).

The price of bitcoin has almost doubled since the beginning of the year, while gold has fallen by almost 15%. Cryptocurrency has emerged as a competitor to gold as a hedge against inflation, that is, a protection against depreciation. Gold is often used as such a hedge: when the US dollar loses value due to inflation, the price of gold tends to increase.

Options contracts are more popular than ever, with more options contracts traded last year than any other year in history.1 With people spending more time at home due to the COVID-19 pandemic, many are turning to trading and investing their new surplus of time and money. Brokers have eliminated previous barriers in options trading with smaller fees, increased usability, and the elimination of required minimum account balances to trade options.