Trading during the Asian session can present unique opportunities and challenges. Here are some key considerations and strategies for trading in the Asian session:
Stock prices rise or fall based on the balance between supply and demand in the market. When more investors want to buy a stock than sell it, the price goes up. When more people want to sell than buy, the price drops. This balance is influenced by...
Portfolio rebalancing is the process of adjusting the allocation of assets in an investment portfolio to maintain a desired level of risk and return. Over time, market movements can cause certain assets, like stocks or bonds, to grow or shrink...
The terms “shares” and “stocks” are often used interchangeably, but they have subtle differences in meaning. Both represent ownership in a company, yet they describe this ownership from slightly different perspectives.
At-the-money (ATM) option is one in which the strike price reflects the current market value of the underlying asset. Essentially, it describes how an option's strike price and the underlying asset's market price are related. Both a call option and a...
Floating rate bonds, also known as variable rate bonds, are debt securities with interest payments that adjust periodically based on a benchmark rate. Unlike fixed-rate bonds, where the coupon remains constant, floating-rate bonds have interest...
Basis points are used to describe yields and interest rates but describe changes in the value of an asset, such as percentage changes in stock prices. The following are some common examples.
The Federal Reserve, commonly referred to as the "Fed," is the central bank of the United States. Its primary role is to promote a stable and healthy economy by implementing monetary policy, supervising and regulating banks and other financial...
A physical share certificate is a paper document that serves as proof of ownership of shares in a company. It includes details such as the shareholder’s name, the company’s name, the number of shares owned, and the certificate number....
Debentures are a type of long-term debt instrument issued by corporations, governments, or financial institutions to raise funds from investors. They represent a form of borrowing for the issuer and serve as a promise to repay the principal amount...