An alpha capture system is a

computer system A computer is a machine that can be programmed to automatically carry out sequences of arithmetic or logical operations (''computation''). Modern digital electronic computers can perform generic sets of operations known as ''programs'', wh ...

that enables

investment bank Investment is traditionally defined as the "commitment of resources into something expected to gain value over time". If an investment involves money, then it can be defined as a "commitment of money to receive more money later". From a broade ...

s and other organizations to submit "trading ideas" or "

trade idea Trade ideas (or trading ideas, or "Electronic Alpha-Capture") are investment ideas, typically equity related, ("long" i.e. buy, or "short" i.e. sell) which are sent by institutional stockbrokers to their institutional clients (i.e. this is not a s ...

s"
TIM Ideas to clients in a written electronic format, for example TIM Group's TIM Ideas product or Bloomberg LP's Trade Ideas product.

Introduction

Financial Services Authority Markets Division:

Newsletter A newsletter is a printed or electronic report containing news concerning the activities of a business or an organization that is sent to its members, customers, employees or other subscribers. Newsletters generally contain one main topic of ...

on Market Conduct and Transaction Reporting Issues, Issue No. 17, September 2006,Market Watch
retrieved 8 January 2009 First used in 2001 by Marshall WaceWall Street Redefined
by Bill Alpert, First Coverage, retrieved 8 January 2009 they are an alternative to the traditional

stockbroker A stockbroker is an individual or company that buys and sells stocks and other investments for a financial market participant in return for a commission, markup, or fee. In most countries they are regulated as a broker or broker-dealer and ...

ing approach of communicating ideas and strategies to clients face-to-face or over the telephone.

Terminology

The term ''alpha capture'' refers to the aim of such systems to help investors find alpha or market-beating returns on

investment Investment is traditionally defined as the "commitment of resources into something expected to gain value over time". If an investment involves money, then it can be defined as a "commitment of money to receive more money later". From a broade ...

s. Submitted trade ideas are accompanied by a rationale, timeframe and conviction level and enable

investor An investor is a person who allocates financial capital with the expectation of a future Return on capital, return (profit) or to gain an advantage (interest). Through this allocated capital the investor usually purchases some species of pr ...

s to quantify and monitor the performance of different ideas.

References

External links

Cryptocurrency Trading
Financial software {{trade-stub

Introduction

Terminology

See also

References

External links