What are Automated Trading Systems? Automated trading systems use algorithmic trading to create buy and sell orders on the stock market or other exchanges. A computer program can be customized to specific trading strategies. It places orders based on these strategies and predetermined guidelines that are programmed within the algorithms. Automated trading systems can take…
What is a Call Warrant? A call warrant gives the holder of the investment the right, not the obligation, to purchase the underlying financial securities at a specific price on or before a certain date. If the holder does not exercise the warrant, the call warrant will expire worthless. If the price of the underlying…
What is an Equity Futures Contract? Equity futures definition: An equity futures contract is a financial arrangement between two counterparties to buy or sell equity at a specified date, amount, and price. Finance professionals use these instruments to capitalize on stock price movements or protect portfolios against market volatility — all without direct share ownership….
What is a Fixed Income Forward Contract? A fixed income forward contract refers to an agreement between two counterparties to buy or sell a fixed income instrument at a specified date, price, and amount in the future. The contracts are used for speculation or hedging purposes by locking in the fixed income delivery price today….
What is a Cross Purchase Agreement? A cross purchase agreement is when a company’s shareholder or business partner agrees to purchase the shares of another shareholder or business partner who leaves the company due to death, retirement, or incapacitation. Before the shareholder or business partner leaves the company, they would agree to let their shares…
What is a Cross Currency Transaction? A cross currency transaction involves the use of more than one currency. For example, you may be involved in a cross currency transaction in order to convert one currency into another currency. Previously, an individual who wanted to exchange one currency into another currency would need to convert their…
What is Cross Currency Settlement? Cross currency settlement refers to a transaction or cross currency pair that does not use the U.S. dollar. In an international foreign exchange market, also known as a spot market, buying and selling foreign currencies means that there will be two currencies involved in the transaction. Therefore, currencies are traded…
What is Networking for University Students? Learning how to network effectively is critical for university students seeking internships and summer opportunities. Job search websites today give students access to many options when it comes to deciding where they would like to apply for internships within the finance industry. However, this is a double-edged sword as…
What is a Treasury Bond? A Treasury bond (or T-Bond) is a long-term government debt security issued by the U.S. Treasury Department with a fixed rate of return. Maturity periods range from 20 to 30 years. T-bond holders receive semi-annual interest payments (called coupons) from inception until maturity, at which point the face value of…
