Trading outside of regular market hours: Explanation, Benefits, Dangers, Illustration
What is the effect of expansionary economic policy on the stock market?
Understanding Short Positions: Definition, Summary, and Illustration
Can you explain what penny stocks are?
Exploring the Concept of Shares and Their Distinction from Stocks
Investing in smaller priced stocks, engaging in options trading, and utilizing margin for trading.
Understanding Mandatory Redemption of Shares: Definition, Mechanism, Illustrative Example
Strong Dedication
Stock that has a higher claim on assets and earnings compared to common stock.
Understanding Market Capitalization and the Formula to Calculate It
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Contracts That Resemble Each Other: Definition, Restrictions, Evaluations
What Are Look-Alike Contracts? Look-alike contracts are financial instruments settled in cash, mirroring the settlement price of exchange-traded futures contracts but without the risk of physical delivery. These contracts are…
Explaining the Concept of a Long Hedge, Its Mechanics, and an Illustrative Instance
What Is a Long Hedge? A long hedge is a futures position taken to stabilize purchase prices, primarily used by manufacturers and processors to mitigate price volatility when acquiring necessary…
Bulk purchase
Understanding Job Lots: Definition and Applications In finance and manufacturing, the term “job lot” holds different meanings, each relevant to its specific industry context. In finance, a job lot refers…
Broker Introduction: Explanation, Duties, Enrollment, and Illustrations
What Is an Introducing Broker? An introducing broker (IB) is a professional adviser specializing in the futures markets, facilitating trade executions for clients by partnering with futures commission merchants (FCMs).…
Understanding Interest Rate Futures: Definition and Calculating Methods
When volatility impacts bond markets, traders often seek refuge in interest rate futures to hedge risks or speculate on future interest rate movements. An interest rate future represents a contract…
Definition, Minimum Requirement, and Example of Initial Margin.
Understanding Initial Margin in Investing Initial margin plays a crucial role in the world of investing. It represents the percentage of a security’s purchase price that must be covered by…
Understanding Index Futures: Exploring Definitions, Varieties, and Strategies for Gains
Index futures are financial agreements tied to the performance of a specific index. These contracts allow traders to speculate on the future price movements of indexes like the S&P 500…
Definition, Calculation, and Example of Implied Rate
What Is the Implied Rate? The implied rate refers to the interest rate discrepancy between the spot interest rate and the rate set for a forward or futures contract delivery…
Understanding CWT (Hundredweight) and Its Calculation
What Is a Hundredweight (CWT)? A hundredweight (CWT) is a unit of measurement commonly used in trading various commodities. It serves as a reference point in commodities trading contracts and…
Understanding Heating Degree Days (HDD) and Their Calculation
What is Heating Degree Day (HDD) Heating Degree Day (HDD) is a crucial metric that quantifies the energy required to heat structures. It represents the degree to which a day’s…