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What is Coiled Market?
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...
What is a Tech Bubble in Stock Market ?
Tech Bubble in Stock Market is a pronounced and unsustainable market rise attributed to increased speculation in technology stocks. It is highlighted by rapid share price growth and high valuations based on standard metrics like price/earnings ratio or...
Yield Tilt Index Fund
An alternative to a pure index fund, a yield tilt fund diversifies its holdings among a universe of stocks that is “tilted” in the direction of higher yield, such as the high-yield stocks that comprise the S&P 500. Yield tilt funds are...
“After The Bell” in Stock Market
“After the bell” is basically a financial slang used for activity occurring after the close of the stock market, The New York Stock Exchange (NYSE) closes its trading day with the ringing of a bell including after-hours trading, illegal late...
Disadvantages of Owning Common Stock
The main disadvantage of common stock is that in case the company needs to be liquidated, they won’t see a cent of their money after the bondholders, other debt holders, and preferred stock owners have received their part. This scenario shouldn’t...
What is Stock Market Crash ?
In recent times many would-be investors simply refuse to enter the stock market, because of the risks involvedand fear of crash in stock market . . While it is true that crashes can happen, understanding what causes a crash and what the effects are can...
Check List of Things for Trading in Stocks
1.) If the lead stochastic crosses over the 20 band consider this a possible buy signal, and if it crosses below 80, then it would be a sell signal. 2.) Use several charts in different time periods for each stock you are trading. 60, 13, 8, 3, and 1 minute...
Interest Rate Swaps in Stock Market
An interest rate swap is a derivative in which one party exchanges a stream of interest payments for another party’s stream of cash flows. Interest rate swaps can be used by hedgers to manage their fixed or floating assets and liabilities. Unlike...
Inflation Swap in Stock Market
An inflation swap is the linear form of an inflation derivative, an over-the-counter and exchange-traded derivatives that is used to transfer inflation risk from one counterparty to another. There are three main types of inflation swap. In a standard...
Protective Put Option – Option Trading
A put option purchased for an underlying security that is already owned by the holder of the option. A protective put defends against a drop in the share price of the underlying security. A protective put strategy is usually employed when the options...
Call Bull Spread – Option Trading
A type of options strategy used when a moderate rise in the price of the underlying asset is expected. It is achieved by purchasing call options at a specific strike price while also selling the same number of calls of the same asset and expiration date...
Call Back Spread- Options Trading
The call backspread is an investment strategy that involves selling a call at one strike price at a lower rate and then purchasing two calls at a higher strike price. This approach provides the call ratio backspread with a built in hedge component that...
Short Put : Option Trading Explained
Writing a put obligates you to buy the underlying stock at the strike price any time until expiry if you are assigned. short put is created when long stock position is combined with a short call of the same series. It is so named because the established...
Ulcer Index -The Basic Concept
The Ulcer Index measures the “stress” of holding a trade or investment by measuring price retracements. The Ulcer Index is based on the notion that downward volatility is bad, but upward volatility is good. Unlike standard deviation, the financial...
How to Calculate Relative Strength Index?
Calculation of RSI A technical momentum indicator that compares the magnitude of recent gains to recent losses in an attempt to determine overbought and oversold conditions of an asset. It is calculated using the following formula: RSI = 100 - 100 ______ 1...
