The LEFT function in Excel extracts a specified number of characters from the beginning of a text string. It is useful for manipulating text data and can be combined with other functions like VALUE, SUM, and DATE for enhanced utility. The syntax is =LEFT(text, [num_chars]), where num_chars specifies the number of characters to return. The…
What is the FIND Function? The FIND Function is categorized under Excel TEXT functions. The function will return the position of a specified character or sub-string within a supplied text string. In financial analysis, we can use this function to locate specific data. FIND Function Formula =FIND(find_text, within_text, [start_num]) The FIND function uses the following…
The OR function in Excel checks if any given conditions are TRUE. It is used for logical tests and can handle up to 255 conditions. The function’s syntax is =OR(logical1, [logical2], …). It is often combined with other functions like IF and AND for complex decision-making processes. It is useful in financial analysis, such as…
The REPLACE function in Excel replaces part of a text string with a different text string, useful for modifying variable text data. Its syntax is =REPLACE(old_text, start_num, num_chars, new_text). The function is particularly helpful in financial analysis to clean and adjust text data. It addresses errors such as negative or non-numeric arguments. To ensure proper…
What is the PERMUT Function? The PERMUT Function is categorized under Excel FINANCIAL functions. The function will calculate the number of permutations of a specified number of objects from a given set of objects. In financial analysis, PERMUT can be useful in calculating different possible permutations. So, it will help in rationally evaluating situations and making…
What is the LOWER Function? The LOWER Function is categorized under Excel TEXT functions. The function will return the lowercase version of the text string given. It was introduced in MS Excel 2000 version and is available in all subsequent Excel versions. In financial modeling, it can be useful in arranging data or creating data…
What is Relative Price Strength (RPS)? Relative price strength (RPS), also known as relative strength, is the ratio between the price trend of a stock price compared to the price trend of the market. RPS is commonly used in technical analysis and is not to be confused with relative price index. Formula for Relative Price…
What is Implied Volatility (IV)? Implied volatility (IV) uses the price of an option to calculate what the market is saying about the future volatility of the option’s underlying stock. IV is one of six factors used in options pricing models; however, it can’t be calculated unless the remaining five factors are already known. Ultimately,…
What is a Margin Call? A margin call occurs when the value of a margin account falls below the account’s maintenance margin requirement. It is a demand by a brokerage firm to bring the margin account’s balance up to the minimum maintenance margin requirement. To satisfy a margin call, the investor of the margin account…
What is Spread Trading? Spread trading – also known as relative value trading – is a method of trading that involves an investor simultaneously buying one security and selling a related security. The securities being bought and sold, often referred to as “legs,” are typically executed with futures contracts or options, though there are other…
