In the stock markets, companies in the same industry usually have a high correlation between revenue growth and profit trends. So can investors take advantage of the correlation between different assets to capture trading opportunities and develop investment strategies?
uSMART's "Price-Order Triggering" function can intelligently help investors realize their portfolio strategy with the correlation between different assets. If investors have in-depth analysis and insights on some specific sectors, then using "Price-Order Triggering" can further facilitate the realization of investors' investment strategies by trailing relevant assets.
When investors believe that the trend of a stock or warrant has a strong correlation with other stocks or indexes, “Price-Order Triggering” order can be used to set up order commission by tracking an individual stock or index quotes. The smart order will be triggered if the tracked stocks or indexes reach the specified price.
Take Tesla (TSLA.US) and XPeng (XPEV.US) for example. The current price of Tesla is USD 215.000 and the current price of XPeng is USD 6.5.000. Suppose an investor wants to buy XPeng and believes that the movement of XPeng is strongly correlated with that of Tesla. At this time, investors can preset a conditional buy order of 100 shares of XPeng at USD 7.000 through uSMART [SMART Order - Price-Order Triggering], which will be triggered when the price of Tesla breaks USD 220.000.
Once the share price of Tesla rises to USD 220.000 or above, the system will automatically fill a buy order for 100 shares of XPeng at USD 7.000.
When setting the input price of a stock, investors can choose bid(1) price, limit price, last price, market price and ask(1) price. But for warrant transactions, investors only can choose enhance limit price or market price.
For more information on the Smart Order strategies, please click here.
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