What Is Forex Trading? A Beginners Guide

A forecast that one currency will weaken is essentially the same as assuming that the other currency in the pair will strengthen. Traders can also use the implied volatility of options to gauge future volatility. The implied volatility is calculated from the price of an option and represents the market’s expectation of future price fluctuations.… Continuar lendo What Is Forex Trading? A Beginners Guide

Drawing Account: What It Is and How It Works

Expanding the topic from the first half of the article, I used an example where Mr. ABC (owner) withdrew $ 100 from his real estate business (XYZ Enterprises) for personal use. This transaction will result in a decrease in the XYZ Enterprises’ owners’ equity capital and a decrease in the enterprise’s Cash Balance. All transactions… Continuar lendo Drawing Account: What It Is and How It Works

Tier 1 Capital vs Tier 2 Capital: What’s the Difference?

Tier 2 capital includes revaluation reserves, hybrid capital instruments, and subordinated debt. In addition, tier 2 capital incorporates general loan-loss reserves and undisclosed reserves. Tier 3 capital includes a greater variety of debt than tier 1 and tier 2 capital but is of a much lower quality than either of the two. Under the Basel… Continuar lendo Tier 1 Capital vs Tier 2 Capital: What’s the Difference?

What Is the Bid-Ask Spread?

Content Bid and Ask What is market volatility? Bid and Ask Spread: Market Makers The Bid Price Bid-Ask Spread FAQs Executing an Options Trade: Navigating the Bid/Ask Spread What Are Examples of Ask and Bid Price? The bid-ask spread can be an important factor in determining whether to buy or sell a security. It is… Continuar lendo What Is the Bid-Ask Spread?

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