Key Currency
What is Key Currency? Key currency is a currency that does not fluctuate too broadly, helps in setting exchange rates, and supports global transactions. The term “key currency” can also be used to define prominent currencies in the world. Since a key currency is recognized globally, it can set the value of other currencies. Key...
Samurai Bond
What is a Samurai Bond? A samurai bond is a corporate bond issued by foreign companies in the Japanese market and is required to abide by the Japanese regulations. It is a yen-denominated bond that attracts investors from Japan, providing capital to a non-Japanese issuer. Samurai bonds provide issuers access to the financial market and...
EAFE Index
What is the EAFE Index? The EAFE Index (Europe, Australasia, and the Far East) was created to measure the performance of the stock markets in developed markets – excluding the U.S. and Canada. The indicator is maintained by MSCI Inc. and is popularly known as the MSCI EAFE Index. MSCI Inc. is a U.S.-based finance...
Domicile
What is Domicile? Domicile is a legal term used to refer to the permanent or legal address (place or country) of an individual. In business, domicile is the place or country in which a business is registered or has been incorporated. Domicile will be the business’ registered address or its registered office. The...
Delta Hedging
What is Delta Hedging? Delta hedging is a trading strategy that reduces the directional risk associated with the price movements of an underlying asset. The hedge is achieved through the use of options. Ultimately, the objective is to reach a delta neutral state, offsetting the risk on the portfolio or option. How Delta Hedging Works...
