So far, we're quite happy with our refactoring. However, our boss just called and said we have to support pair trading in the next release. This new request is adding yet another twist to our design!
Pair trading can be used to implement a specific trading strategy, such as market-neutral trades or option strategies such as covered calls.
Market neutral trading involves buying one stock and short-selling another one at the same time. The idea is to neutralize the market's effects so that the investor can focus on picking the stocks that over-perform or under-perform relative to their peers.
Covered call strategy involves buying a stock but selling a call option that strikes at a higher price. This ...