What does an opportunistic participation strategy include?

An opportunistic participation strategy emphasizes active decision-making based on prevailing market conditions rather than adhering to a strict trading routine. It allows investors to seize temporary opportunities in the market, particularly in terms of liquidity, which can fluctuate based on various factors such as news events, economic data releases, or shifts in investor sentiment.

This strategy works by integrating passive trading elements, where positions may be held over longer durations, with opportunistic approaches that focus on taking advantage of specific market conditions. The ability to respond swiftly to these conditions—with a focus on liquidity—can lead to improved execution prices and reduced trading costs. Hence, the combination of passive trading with opportunistic liquidity seizing encapsulates the essence of this strategy.

The other options do not fit as well because they either focus on specific techniques (like high-frequency trading, fixed income investment, or long-term forecasting) that do not encompass the broader, more flexible nature of an opportunistic participation strategy.