Holding the Market
What is Holding the Market? Holding the market refers to a market participant (or participants) that places or maintains buy orders for a security whose price is expected to fall rapidly – or is in the process of – typically due to bad news. The purpose of holding the market is to help maintain an...
James Tobin
Who is James Tobin? Born on March 5, 1918, James Tobin is an American economist who was awarded the Nobel Prize for his work and analysis of financial markets and how they relate to production, prices, expenditure decisions and budgeting, and employment. Mr. Tobin focused on Keynesian economics, and his most prominent work was on...
Forward Price
What is Forward Price? Forward price refers to the predetermined and agreed upon price of an underlying asset in a forward contract. It is also known as the forward rate. A forward contract refers to an agreement between parties to buy or sell an underlying asset on an agreed-upon date and price. The underlying asset...
Reverse Cash and Carry Arbitrage
What is Reverse Cash and Carry Arbitrage? Reverse cash and carry arbitrage is the inverse of the cash and carry arbitrage commodity trading strategy. Like cash and carry arbitrage, it is a market-neutral strategy that seeks to take advantage of market inefficiencies between a commodity’s spot price and its future price. In the reverse cash...
Help-Wanted Index (HWI)
What is the Help-Wanted Index (HWI)? The help-wanted index (HWI), originally developed by the Conference Board, tracks the number of help-wanted advertisements in major national newspapers monthly. The HWI is used as a leading indicator of economic conditions. Currently, the HWI is not a commonly used indicator due to the growing use of the internet...
