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Summary for High Yield Trading Funds A High yield trading fund (HYTF or HYTFund) is a definition for the new generation of market instruments known from the late 1990s, when cyber solutions (see cyber trading) for asset management become widely applicable. It provides high yields from trading activity while keeping the risk level (see risk management) as low as with the traditional instruments, like mutual funds. Recent history demonstrates that the low-risk low-yield strategy does not prevent investors from losses. In modern conditions, a market situation allows to obtain huge profits, including that from cyber-trading that detects and helps make use of even a tiny volatility. This technology is realized by various High Yield Trading Funds. At that, an important characteristic of a correct High Yield Trading Fund is its proper and proportionate income distribution; because these funds work with means of investors, thus giving out the most part of the profits to them. This is the main difference of High Yield Trading Funds from any other type of funds, even though the risks are hedged in these funds, too, so they do not exceed the risks of mutual funds. Review Various funds' operations are based on different indices. Normally funds invest at least 80-90% of the total assets in securities that this or that index comprises. Each index, taken apart, usually serves as a measurement for potential returns of a medium (conventional) portfolio of high-yield corporate bonds that are rated below investment grade by Moody's, S&P or Fitch. The funds rarely use several indices simultaneously, evaluating securities monthly, quarterly or semi-annually using various weighting methodologies based on an especially defined set of qualifying criteria, each fund preferring its own. The funds that operate the fastest, which are comparably small to well-known global funds, that appear on the markets nowadays quite frequently resort to the help of daily evaluating securities. Or even hourly. The spike of all operations of all funds being focused now (and ever has been) on how to change the portfolio in such a way so that when a specific time passes (an hour, a day, a week, a month) the yields should be as much as possible. This task is fulfilled by each fund in the way that isn’t congruous to other funds’ policies. And variety of funds, mechanisms, evaluation schemes, operating steps, even currencies involved, bring to investors a world of investment opportunities. Basic Idea Market Capacity and Potential Yield Share Strategy Criticism and Risk Estimation Technology and Technique Applicable Manual Criteria Application Cyber Trading Application Executive Decision for Trade Position Conclusion
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