Trading
Value-Added Monthly Index (Vami)
Value Added Monthly Index (VAMI) The Value Added Monthly Index (VAMI) is a seasonally adjusted index that measures the growth in value added by the manufacturing sector in a particular country. It is a key indicator of economic activity and is often used to gauge the strength of the manufacturing sector’s contribution to GDP growth. […]
Online Currency Exchange
Online Currency Exchange Online currency exchange is a popular way for individuals and businesses to convert currencies electronically. It involves using an online platform that allows users to exchange currencies at a competitive rate. Types of Online Currency Exchanges: Centralized exchanges: Operate like traditional banks, with a central authority that controls the exchange rate and […]
Short Selling Explained
Short Selling Short selling is a type of securities transaction in which a trader sells a security that they do not own. Instead of borrowing the security and covering the position when it is bought back, the trader borrows the security from a broker-dealer and sells it in the market. How Short Selling Works: Borrowing: […]
Magic Formula Investing
Magic Formula Investing Magic formula investing is a quantitative investment strategy that relies on a set of mathematical formulas to identify undervalued stocks. The formulas are designed to measure the intrinsic value of a company, such as its price-to-earnings ratio (P/E), price-to-book ratio (P/B), and return on equity (ROE). Key Principles: Quantitative analysis: Magic formula […]
Hockey Stick Chart
A hockey stick chart is a type of line chart that is used to track the progress of a hockey team over time. It is typically a graph of the team’s goals and shots on goal for each period of the game. Parts of a Hockey Stick Chart: Two lines: One line represents the team’s […]
Bank For Cooperatives
Bank for Cooperatives A bank for cooperatives is a specialized financial institution that provides banking services exclusively to cooperatives. It is a separate legal entity from the cooperative itself, but is typically owned and controlled by a group of cooperatives. Key Features of Bank for Cooperatives: Ownership: Cooperatives own and control the bank. Members of […]
Common Stock Trading Terms Every Trader Should Know
Common Stock Trading Terms Every Trader Should Know: Basic Terminology:* Bid: The highest price a buyer is willing to pay for a stock.* Ask: The lowest price a seller is willing to accept for a stock.* Market Maker: A company that actively buys and sells a stock to provide liquidity and stabilize prices.* Day Trader: […]
Stopped Order
A stopped order, also known as a trailing stop-loss order, is a type of conditional order in which you specify a price level at which you want to sell a security if the price reaches that level. It’s a popular order type among day traders and investors because it allows you to lock in profits […]
Portfolio Turnover
Definition: Portfolio turnover is a measure of how frequently a portfolio manager changes the investments in a portfolio. It is expressed as a percentage of the securities in the portfolio that are sold and replaced with new securities in a given period. Formula: “`Portfolio turnover = (S – B) / A * 100% where: S […]
Commoditization
Commoditization Commoditization is the process of transforming a product or service into a commodity. A commodity is a standardized product that is traded on a public market and is characterized by a single, identifiable quality. Factors that Lead to Commoditization: High volume and low price: When a product or service is produced in large quantities […]
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