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Articles on Personal Instruments
PQM Method is an innovative approach to the study of financial markets and analysis of their dynamics. In fact, it is based on Forex concept, according to which, one financial asset is quoted against another.
Creation of PCI through PQM Method
Author | Sona Matasyan |
Language | English |
Genre | Finance, Education |
Educational use | Creation of personal instruments |
Pages | 18 |
Organization | IFC Markets |
Price | Free |
Book format | |
Publish date | 2020 |
What is PQM Method
- Portfolio Creation/Risk Diversification
- PCI & Its Advantages
- Mathematical Expression of PCI
- Example of Application of the Method: PCI Creation
Idea Summary
According to PQM Method, the concept is expanded for portfolios that stand for base and quoted parts. More precisely saying, one combination of assets is quoted against another combination.
Personal Composite Instrument (PCI) is the fundamental component of PQM Method where the value of the base asset (portfolio) is expressed in the value of the quoted asset (portfolio). PCI is a unique technology in the market, providing an opportunity to compose personal instruments, such as new cross rates, correlations between various assets, currency indexes, stock portfolios, portfolios for pair trading and many more. The variation of the instruments is limitless.
Smart technology of PCI grants limitless opportunities to investors, traders and analysts to analyze and test various trading strategies and original ideas to find complex interrelations between assets and even different markets. Now traders are not constrained with the amount of instruments offered by brokers. Instead, they can trade limitless number of instruments.