Monday 12 December 2011


Hensex Securities is a Proprietary trading desk.We  trade  stocks, bonds, currencies, commodities, their derivatives, or other financial instruments, with the firm's own money as opposed to customers' money, so as to make a profit for ourtself.To trade we use a variety of strategies such as index arbitrage, statistical arbitrage, merger arbitrage, fundamental analysis, volatility arbitrage and technical analysis, much like a hedge fund.

One of the main strategies of trading,  is arbitrage. In the most basic sense, arbitrage is defined as taking advantage of a price discrepancy through the purchase/sale of certain combinations of securities to lock in a profit. The difference between arbitrage and a typical investment is the amount of reward: the risk in what is known as arbitrage today  is market neutral. From the second the trade is executed, a profit is locked in.
We also use trend following as an investment strategy taking advantage of long-term moves that seem to play out in various markets. The strategy aims to work on the market trend mechanism and take benefit from both sides of the market, enjoying the profits from the ups and downs of the stock or futures markets. For this we use current market price calculation, moving averages and channel breakouts to determine the general direction of the market and to generate trade signals. We do not aim to forecast or predict specific price levels; we simply jump on the trend and ride it.Trend following is a betting strategy that tries to take advantage of long-term moves that seem to play out in various markets. We normally enter in the market after the trend "properly" establishes itself, betting that the trend will persist for a long time. A market "trend" is a tendency of a financial market price to move in a particular direction over time. If there is a turn contrary to the trend, we exit and wait until the turn establishes itself as a trend in the opposite direction. In case our rules signals an exit, we exit but re-enters when the trend re-establishes.Cutting Loss. Exit market when market turn against us to minimize losses, and "let the profits run", when the market trend goes as expected until the market exhausted and reverses to book profit.It is possible that a majority of the trades may be unprofitable, but by "cutting the losses" and "letting profits run", the overall strategy makes it profitable.
For above we use, algorithmic trading, also known as algo trading, black-box trading,it is the use of computer programs for entering trading orders with the computer algorithm deciding on aspects of the order such as the timing, price, or quantity of the order.A special class of algorithmic trading is "high-frequency trading" (HFT), in which computers make elaborate decisions to initiate orders based on information that is received electronically, before human traders are capable of processing the information they observe. We use Algorithmic trading in any investment strategy,  arbitrage, pure speculation (including trend following). The investment decision and implementation may be augmented at any stage with algorithmic support or may operate completely automatically.
Hensex Securities  is a Member of NSE & registered with SEBI. The aim of the Website is to provide quality information and research to the common investor.


Very soon we shall launch our own brokerage and PMS services, with innovative strategies and research to make sure that trading & Investing for our clients is truly rewarding , affordable and stress free journey.