You Are Here: Home » Posts tagged with "forex"
The Baltic Dry Index (BDI) is a number issued daily by the London-based Baltic Exchange.A shipping and trade index created by the London-based Baltic Exchange that measures changes in the cost to transport raw materials such as metals, grains and...
Consumer confidence is the degree of optimism that consumers feel about the overall state of the economy and their personal financial situation. How confident people feel about stability of their incomes determines their spending activity and therefore...
A section of the Internal Revenue Code that clarifies the transactions that are subject to capital gains taxation. Basically, any transaction that essentially offsets a previously held position is subject to the tax, even if it is not a straight sale...
Coiled markets refer to markets thought of having potential to make a sizable move in one direction, but for one reason or another, is currently restrained from doing so.Basically ,a market that is believed to have the potential to make a strong move...
A death benefit in some life insurance policies that may be paid before the policyholder’s actual death. Generally speaking, one may use the accelerated death benefit only to defray medical expenses should the policyholder be diagnosed with a terminal...
A type of preferred stock where the dividends issued will vary with a benchmark, most often a T-bill rate. preferred stock , whose dividend instead of being fixed is adjusted, usually quarterly, based on changes in the Treasury bill rate or other money...
The annuitization phase involves liquidating the annuity through fixed annuity payments for a period certain or for the remainder of the annuitant’s life. Rolling over annuity funds or receiving a full lump sum from an annuity at maturity is not...
A trading strategy taking a long or short position on a stock or commodity and taking the opposite position on a futures contract. This strategy often makes use of a computer program because the transactions involved can become complex and occur in rapid...
The Articles of Incorporation (sometimes also referred to as the Certificate of Incorporation or the Corporate Charter) are the primary rules governing the management of a corporation in the United States and Canada, and are filed with a state or other...
The asymmetric volatility phenomenon (sometimes known as AVP) is a market dynamic that shows that there are higher market volatility levels in market downswings than in market upswings. Factors that cause this phenomenon have been attributed to several...
Instructions to an agent or broker to buy or sell a security at the price obtainable at the time the trading opens, otherwise to cancel the order.It is an at the opening order is a way for an investor to secure a position at the opening of a trading session.A...
Backtesting
The process of testing a trading strategy on prior time periods. Backtesting (or back-testing) is the process of evaluating a strategy, theory, or model by applying it to historical data. It can be used in situations like studying how a trading...
Stock-Picking Strategies: Dogs of the Dow
The investing strategy which focuses on Dogs of the Dow was popularized by Michael Higgins in his book, “Beating the Dow”. The strategy’s simplicity is one of its most attractive attributes....
Backtesting: Interpreting the Past
Backtesting is a key component of effective trading-system development. It is accomplished by reconstructing, with historical data, trades that would have occurred in the past using rules defined by a given strategy....
Mini-Sized Dow Options is a highly leveraged index option on a futures contract in which the underlying index is the Dow Jones Industrial Average. The option has a multiplier of five, meaning that the option allows one to buy (for a call) or sell (for...
The London International Financial Futures and Options Exchange (LIFFE, pronounced ‘life’) is a futures exchange based in London. LIFFE is now part of NYSE Euronext following its takeover by Euronext in January 2002 and Euronext’s merger...