The volatility index, most commonly known as the CBOE Volatility Index (VIX), is often called the “fear gauge” because it reflects the level of uncertainty and anxiety among investors in financial markets. It measures expected market volatility...
Monetary inflation and price inflation are closely related concepts, but they are not the same. Monetary inflation refers to an increase in the overall money supply within an economy. This typically happens when central banks expand the amount of...
Negative demand in financial markets refers to a sustained decline in investor interest, leading to falling prices and reduced liquidity. It can be measured through several key indicators. Trading volume is a primary metric; unusually high selling...
Mid-cap companies, characterized by their market capitalization typically ranging from $2 billion to $10 billion, occupy a unique niche in the investment world, balancing growth potential and stability. Here are some well-known examples of mid-cap...
In trading, keeping a position open beyond its expiry typically involves rolling over the position to a future date. This process is known as rolling over or renewing a position.
The relationship between stock markets and banking is closely interconnected, as both play vital roles in a country’s financial system. Banks and stock markets serve as channels for mobilising savings and allocating capital efficiently, but they do...
Becoming successful in penny stock trading requires a combination of discipline, research, and strong risk management. Unlike large-cap stocks, penny stocks are highly volatile and often influenced by speculation, so traders must approach them with...
The 52-week low of a stock is the lowest price at which the stock has traded during the past 52 weeks (one year). It is a widely used technical and fundamental reference point that helps investors understand how far a stock has fallen from its recent...
The relationship between policy rates and stock valuations is a fundamental concept in financial markets. Policy rates, set by central banks, directly influence the cost of borrowing and the overall level of liquidity in the economy. When policy...
The settlement cycle refers to the time it takes to complete a stock trade after it has been executed. When you buy or sell shares, the transaction does not finalise instantly. Instead, there is a short processing period during which the securities...