Tag Archives : financial instrument

Understanding Carry Trade

Understanding Carry Trade

Carry trade is a trading system that enables you to make profit when price remains unchanged for a longer period of time. This trading system is remarkably profitable and needs less efforts from the forex trader unlike other trading systems.

Call Option: Introduction

Call Option: Introduction

A financial contract between two parties i.e. the buyer and the seller of this type of option, is referred to as a call option. It is the option to buy shares of stock at a specified time in the future. Usually it is simply labeled a “call”. In call option, the buyer of the option has the right, but it is not the obligation to buy an agreed quantity of a particular commodity or financial instrument (the underlying instrument) from the seller of the option at…

Volatility: Introduction

Volatility: Introduction

Volatility is most frequently known as the standard deviation of the continuously compounded returns of a financial instrument having a specific time horizon. It is often used in order to quantify the risk of the instrument over the period of time. Typically volatility is expressed in annualized terms, and it might be either…

What is Covered Interest Arbitrage?

What is Covered Interest Arbitrage?

Covered interest arbitrage is the name given to an investment strategy. In this strategy an investor buys a financial instrument that is denominated in a foreign currency, and by selling a forward contract in the amount of the proceeds…

© 2011 PipStory. All rights reserved.