Trading CFDs involves a significant risk of loss that may not be suitable for all investors. Please ensure you fully understand the risks and take appropriate care to manage your exposure.

Trading CFDs involves a significant risk of loss that may not be suitable for all investors. Please ensure you fully understand the risks and take appropriate care to manage your exposure.

Market Noise and Noise Trading

It broadly refers to a situation whereby there is a misrepresentation of underlying market activity. The word was first used by Fischer Black. He made an observation that some trading in the market was largely influenced by noise as opposed to factual information. Thus, in a more narrow sense, we can say it refers to the stock market activities that are undergoing but not really reflecting the true picture of the market. Hence the reason as to why it is referred to as market noise. These activities could include the payments of dividends or even some form of program trading, the rise of stocks or downtrend of stocks.

Trading Noise

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