Excess Reserves
What are Excess Reserves? Excess reserves refer to the cash held by a bank or other financial institution above the reserve requirement that an authority sets. The amount of excess reserves is equal to the total reserves reduced by the required reserves. Holding excess reserves leads to the opportunity cost of investing the cash for...
Stochastic RSI (StochRSI)
What is Stochastic RSI (StochRSI)? The stochastic RSI (StochRSI) is a technical indicator used to measure the strength and weakness of the relative strength indicator (RSI) over a set period of time. StochRSI derives its values from the RSI. Basically, a stochastic oscillator is applied to a set of RSI values; Hence, it is based...
Sterling Overnight Interbank Average Rate (SONIA)
What is the Sterling Overnight Interbank Average Rate (SONIA)? Sterling Overnight Interbank Average Rate (SONIA) is an unsecured overnight rate for wholesale funds for all sterling-denominated unsecured overnight funding deals in the British sterling market. SONIA facilitates the direct use of overnight funding deals in financial contracts across the sterling bond, loan, and derivative markets....
Standard Industrial Classification (SIC)
What is the Standard Industrial Classification (SIC)? The Standard Industrial Classification (SIC) is a four-digit classification system that classifies industries according to business activities. The SIC classification system was created in 1937 to help the U.S. government and government agencies analyze economic activities across the domestic economy. The SIC code assigned to a company was...
House Maintenance Requirement
What is the House Maintenance Requirement? House maintenance requirement refers to the minimum amount of equity that a trader must have in their account to maintain a margin balance. The regulations are set out by Regulation T of the Federal Reserve as a way to protect brokerage firms from losses in the event that traders...
