For dealers in government securities, a repurchase agreement (repo) is a type of short-term loan. In a repo, a dealer offers investors government assets for sale, typically overnight, and then buys the securities back the next day at a slightly higher price. The overnight interest rate is implicit in that modest price difference. Repos are often used to raise quick money. They are frequently used in open market operations by central banks as well. It is a repurchase agreement (repo) for the party purchasing the security and promising to sell it in the future; it is a reverse repurchase agreement (rrpa) for the party selling the security and promising to repurchase it in the future.
As we all know, 2022 has been a painful year, and it continues to be so. What works during a bearish market are a few strategies: shorts, inverse ETFs, holding cash positions and day trading. Today we take a look at ATXI and see how we day traded it. Watch this video to get the technicals. Good trading! Trading Risk Disclaimer All the information shared is provided for educational purposes only. Any trades placed upon reliance of SharperTrades, LLC are taken at your own risk for your own account. Past performance is no guarantee. While there is great potential for reward trading stocks, cryptos, commodities, options, forex and other trading securities, there is also substantial risk of loss. All trading operations involve high risks of losing your entire investment. You must therefore decide your own suitability to trade. Trading results can never be guaranteed. SharperTrades, LLC is not registered as an investment adviser with any federal or state regulatory agency. This is