What is a Fund of Funds (FOF)? A Fund of Funds (FOF) is an investment vehicle where a fund invests in a portfolio composed of shares of other funds rather than investing directly in stocks, bonds, or other securities. The strategy of investing in a fund of funds aims to achieve broad diversification and asset…
What is a Structured Investment Vehicle (SIV)? A structured investment vehicle (SIV) is a non-bank financial entity set up to purchase investments designed to profit from the difference in interest rates – known as the credit spread – between short-term and long-term debt. The long-term debt investments frequently include structured financial products like asset-backed securities (ABS),…
What is a Stop-Loss Order? A stop-loss order is a tool used by traders and investors to limit losses and reduce risk exposure. With a stop-loss order, an investor enters an order to exit a trading position that he holds if the price of his investment moves to a certain level that represents a specified…
What is the Stock Market? The stock market refers to public markets that exist for issuing, buying, and selling stocks that trade on a stock exchange or over-the-counter. Stocks, also known as equities, represent fractional ownership in a company, and the stock market is a place where investors can buy and sell ownership of such…
What is the Eurex Exchange? The Eurex Exchange is the largest European futures and options market. It primarily deals in Europe-based derivatives. A wide range of trade on this exchange is carried out, from European stocks to debt instruments of Germany. Products are also traded over-the-counter and it facilitates settling of contracts along with facilitating trade….
5-Step Guide to Winning Forex Trading Here are the secrets to winning forex trading that will enable you to master the complexities of the forex market. The forex market is the largest market in the world in terms of the dollar value of average daily trading, dwarfing the stock and bond markets. It offers traders a…
Contango vs Backwardation Contango and backwardation are terms used to describe the observed difference between the spot, or cash, price and futures prices for a commodity. The curve has two dimensions, and plots time across the horizontal axis and delivery price of the commodity across the vertical axis. This guide will break down the key…
What Does Buying on Margin Mean? Margin trading, or buying on margin, means offering collateral, usually with your broker, to borrow funds to purchase securities. In stocks, this can also mean purchasing on margin by using a portion of open trade profits on positions in your portfolio to purchase additional stocks. This practice allows investors…
What is a Restricted List? A Restricted List is a list of securities that a bank’s employees are prohibited from buying or selling, either themselves or via any other person or third party. When are Stocks Placed on a Restricted List? Stocks of an issuer are placed on the Restricted Trading List when either: A…
