Sukuk
What is Sukuk? Sukuk (Islamic bond or “Sharia-compliant” bond) is an Islamic financial certificate that represents a portion of ownership in a portfolio of eligible existing or future assets. They can be considered as an Islamic version of conventional bonds. Sharia (Islamic law) prohibits lending with interest payments (riba), which is considered usurious and exploitative...
Pegging
What is Pegging? In finance, pegging refers to two different actions. 1) A peg is the act of linking the exchange rate of one currency to another. For most countries, the general practice is to peg the exchange rate of their currency to that of the U.S. dollar. However, some countries peg to currency baskets....
High-Frequency Trading (HFT)
What is High-Frequency Trading (HFT)? High-frequency trading (HFT) is algorithmic trading characterized by high-speed trade execution, an extremely large number of transactions, and a very short-term investment horizon. HFT leverages special computers to achieve the highest speed of trade execution possible. It is very complex and, therefore, primarily a tool employed by large institutional investors...
Zig Zag Indicator - Technical Analysis
Technical Analysis: The Zig Zag Indicator The Zig Zag indicator is what is known as a filtering or smoothing indicator. Its primary purpose is to filter out insignificant price fluctuations in a security and accurately track the existing trend. It can also be used to identify support and resistance price levels in a market. This indicator is often...
On-the-Run Treasuries
What are On-the-Run Treasuries? On-the-run Treasuries are the most recently issued Treasury bonds or notes. The most commonly traded form of a Treasury note of a specific maturity, the on-the-run Treasury is significantly more liquid than other forms of securities. Therefore, they tend to trade at a premium. In theory, it means they generally come...
