We've all heard of market bubbles and many of us know someone who's been caught in one. Although there are plenty of lessons to be learned from past bubbles, market participants still get sucked in each time a new one comes around. A bubble is only one part of an important phase in markets, so if you want to avoid being caught off guard, it is essential to know what the … [Read more...]
How to Design Hedges?
The actual design of a hedging strategy boils down to a simple, three-step process: Identify Suitable Securities A good hedge often uses the cheapest possible security that offers the protection needed. For example, in the retail situation above, using put options on the retail ETF may be cheaper than purchasing a full short position, while offering the same benefits as … [Read more...]
Tax Advantages of an Individual Savings Account (ISA)
Tax Advantages of an Individual Savings Account (ISA) The successor to the TESSA, the ISA (or individual savings account) provides a government regulated savings scheme for encouraging individuals to save rather than spend as a means of economic and financial control. By encouraging saving in the economy, inflation can be kept at a sustainable and manageable level, … [Read more...]
Foreign exchange market v/s the stock market
Foreign exchange market v/s the stock market Trading that takes place between two counties with different currencies is known as forex trading .The foreign exchange market is also known as the FX market, or the forex market. The forex market is one that is not based on any one business or investing in any one business, but the trading and selling of currencies. The forex … [Read more...]
How to make consistent profits while trading in futures?
How to Make Consistent Profits Trading Futures One of the mistakes that we all consistently make in early trading days as a trader is to try to make too much money in relation to the trading capital. So what is a reasonable objective for a day / futures trader? it is a belief that if traders can regularly take small amounts of money out of the market, their knowledge, … [Read more...]