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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Market for futures trading
What Is a Futures Market? A futures market serves as an auction platform where traders engage in the buying and selling of commodity and futures contracts for future delivery. These…
Understanding Futures Contracts: Varieties, Operations, and Applications in the Trading World
Understanding Futures Contracts A futures contract is a legally binding agreement to exchange a specific commodity, asset, or security at a predetermined price on a specified future date. These contracts…
Definition, Role, and Registration of Futures Commission Merchant (FCM)
What is a Futures Commission Merchant – FCM A pivotal player in the world of futures trading, a Futures Commission Merchant (FCM) serves as the bridge connecting customers to the…
Understanding the Role of a Floor Trader: Definition, Responsibilities, and Qualifications
What Is a Floor Trader? A floor trader is a vital exchange member who executes transactions exclusively for their own account from the floor of the exchange. Traditionally, floor traders…
Understanding the E-Mini and Its Applications in Futures Trading
What Are E-minis? E-minis are electronically traded futures contracts that represent a smaller fraction of the value of standard contracts and are popular for trading indexes, commodities, and currencies. Introduced…
Definition, Applications, and Illustrations of Contracts for Differences (CFDs)
Understanding Contract for Differences (CFD) Contract for Differences (CFD) is a financial derivative that settles the price differences between opening and closing trades through cash payments. Unlike traditional trading, CFDs…
Understanding Contango, Its Causes, and Backwardation
Exploring Contango: A Comprehensive Guide Contango is a term used in the world of commodities trading to describe a situation where the futures price of a commodity surpasses its current…
Definition, Example, and Trading of Commodity Futures Contracts
What Is a Commodity Futures Contract? A commodity futures contract is an agreement where a predetermined amount of a commodity is bought or sold at a specific price on a…
Definition and Calculation Formula of Cheapest to Deliver (CTD)
What Is Cheapest to Deliver? In the realm of futures contracts, the term “cheapest to deliver” (CTD) denotes the most cost-effective security that can be delivered to fulfill the obligations…
Definition and Example of Cash-and-Carry Arbitrage
What is Cash-and-Carry-Arbitrage Cash-and-carry-arbitrage is a strategic approach that involves simultaneously buying an asset in the cash market and selling (shorting) a futures contract on the same underlying asset. This…