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...
Hard Currency
What is a Hard Currency? A hard currency refers to a currency that is generally issued by developed countries, globally traded, and seen as politically and economically stable. International investors put their confidence and trust in hard currencies because they will not dramatically depreciate or appreciate (fluctuate in relative value to other currencies). For the...
Hanging Man Candlestick
What is the Hanging Man Candlestick? The “hanging man” is a bearish financial candlestick pattern that represents a potential reversal in an uptrend. In particular, a hanging man pattern forms at the end of an uptrend. Due to the uptrend reaching its peak, a reversal is likely to occur. The hanging man candlestick pattern is...
Halo Effect
What is the Halo Effect? The halo effect (also referred to as the halo error) is a form of cognitive bias that occurs when a consumer demonstrates favoritism towards a company’s product line. Such favoritism is caused by positive brand experiences and creates brand loyalty. It is referred to as the halo effect to symbolize...
Hammering
What is Hammering? Hammering is a term used for when speculators in a financial market rapidly sell stocks that are perceived to be overvalued. It is done to save potential financial losses. Most commonly, hammering comes after an asteroid event. What is a Speculator, Stock, and an Asteroid Event? A speculator is someone who uses...
