V.5:7 (242-244): Using stochastics by Cynthia Keel and Heidi Schmidt

V.5:7 (242-244): Using stochastics by Cynthia Keel and Heidi Schmidt
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Using stochastics by Cynthia Keel and Heidi Schmidt

The use of stochastics, particularly in the futures markets, has become a necessary part of the trader's daily strategy. Although application of stochastics is simple to understand, adaptations of the basic equation abound. Analysts should be aware of the ambiguous subtleties in stochastics calculation, the influences the ambiguities have on expected results, and how the uses of stochastics differ among financial software.

This article presents a general summary of the stochastic and its use, as well as a financial software survey.

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