What is Historical Volatility (HV)? Historical volatility, or HV, is a statistical indicator that measures the distribution of returns for a specific security or market index over a specified period. The historical volatility of a security or other financial instrument in a given period is estimated by finding the average deviation of the instrument from...
What is Current Face? Current face – or current face value – refers to the face value of a mortgage-backed security (MBS) at a given point in time. Current face value is the same thing as current par value or current nominal value. It denotes the outstanding principal value of an MBS – the principal...
What is the Icahn Lift? The “Icahn lift” refers to the effect on the share price of a company that American businessman Carl Icahn buys into. Due to Mr. Icahn’s prominent reputation of being an activist investor, when he accumulates shares in a company, the market expectation is that he will act as an activist...
What is Exchange Control? Exchange controls are government-imposed controls and restrictions on private transactions conducted in foreign currency. The government’s major aim of exchange control is to manage or prevent an adverse balance of payments position on national accounts. It involves ordering all or part of foreign exchange received by a country into a common...
What is the Evening Star Pattern? The Evening Star pattern is a type of reversal pattern of asset price charts. It usually appears at the top of an uptrend and is a bearish signal. Traders do not commonly see an Evening Star pattern, but it is a reliable indicator for technical analysis. Understanding Evening Star...