ARBITRAGE
The simultaneous purchase and sale of an asset in order to profit from a difference in the price. This usually takes place on different exchanges or marketplaces.
Also known as a "riskless profit".
Here's an example of arbitrage: Say a domestic stock also trades on a foreign exchange in another country, where it hasn't adjusted for the constantly changing exchange rate. A trader purchases the stock where it is undervalued and short sells the stock where it is overvalued, thus profiting from the difference. Arbitrage is recommended for experienced investors only.
Tuesday, November 13, 2007
ACCRETING PRINCIAL
ACCRETING PRINCIPAL
A swap whereby the notional value is increasing over time.
This type of swap is used mainly by companies willing to pay a fixed rate in return for an increasing notional as a result of increasing working capital requirements.
A swap whereby the notional value is increasing over time.
This type of swap is used mainly by companies willing to pay a fixed rate in return for an increasing notional as a result of increasing working capital requirements.
ALL FOREX BUZZWORDS....! ABSOLUTE RATE
ABSOLUTE RATE
The fixed portion of an interest-rate swap, expressed as a percentage rather than as a premium or a discount to a reference rate.
The absolute rate is a combination of the reference rate and the premium or discounted fixed percentage. For example, if the LIBOR is 3% and the fixed interest portion of the swap is at a 7% premium, the absolute rate is 10%.
It is sometimes also referred to as an absolute swap yield.
The fixed portion of an interest-rate swap, expressed as a percentage rather than as a premium or a discount to a reference rate.
The absolute rate is a combination of the reference rate and the premium or discounted fixed percentage. For example, if the LIBOR is 3% and the fixed interest portion of the swap is at a 7% premium, the absolute rate is 10%.
It is sometimes also referred to as an absolute swap yield.
WHAT IS FINANCIAL BLOG???
An online journal (or web log) that provides news and information related to the finance industry. Financial blogs not only comment on news and information, but some also provide stock analysis based on both fundamental and technical principles. Most, if not all, financial blogs are provided free of charge to the general public. For the most part the style of these blogs is more casual than articles and often reflect the personal opinion of the respective writers.
The use of financial blogs has become a great tool for investors to share their thoughts on the latest news in the finance industry. Financial blogs are not only provided by major financial websites, but also from individual investors.
Since anyone is capable writing a blog without restrictions on the information used, investors should be wary of what they read. Although reputable websites are reliable with their information, blogs provided by individuals may be more subject to manipulation. Unethical investors can use an investing blog to promote stocks in ways to benefit positions they have taken. Investors who use blogs should be aware these sites exist and ensure that a blog they read has an adequate disclosure policy before they act on anything.
The use of financial blogs has become a great tool for investors to share their thoughts on the latest news in the finance industry. Financial blogs are not only provided by major financial websites, but also from individual investors.
Since anyone is capable writing a blog without restrictions on the information used, investors should be wary of what they read. Although reputable websites are reliable with their information, blogs provided by individuals may be more subject to manipulation. Unethical investors can use an investing blog to promote stocks in ways to benefit positions they have taken. Investors who use blogs should be aware these sites exist and ensure that a blog they read has an adequate disclosure policy before they act on anything.
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