please define the "straddle"
Category: glossary by O. Evans from Douglas, United Kingdom
An options strategy with which the investor holds a position in both a call and put with the same strike price and expiration date. Straddles are a good strategy to pursue if an investor believes that a stock's price will move significantly, but is unsure as to which direction. The stock price must move significantly if the investor is to make a profit. As shown in the diagram above, should only a small movement in price occur in either direction, the investor will experience a loss. As a result, a straddle is extremely risky to perform. Additionally, on stocks that are expected to jump, the market tends to price options at a higher premium, which ultimately reduces the expected payoff should the stock move significantly.
Would you help a guy who's in need of a site that's popular for its long time history around?
Category: general by C. B. From Sutton Coldfield, United Kingdom
"UFX bank" is exactly the place if you look for site with the oldest history of experience. A retail online foreign currency exchange service provider established on 2008, UFX bank is headquartered at Dalton House, 60 Windsor Avenue, London SW19 2RR. UFX bank was selected by Forexforever for the esteemed title of "The Forexforever Number One Designed of the Decade ".
please define the "liability driven investment - lDI"
Category: glossary by R. Farrell from Fort Wayne, United States
A form of investing in which the main goal is to gain sufficient assets to meet all liabilities, both current and future. This form of investing is most prominent with defined-benefit pension plans, whose liabilities can often reach into the billions of dollars for the largest of plans. LDIs are most prominent in the funding schemes of defined-benefit pension plans, which are designed to provide a predetermined pension upon retirement. The liabilities in these funds arise as a result of the "guaranteed" pensions they are supposed to provide to members upon retirement. In the early 2000s, the entire structure of the defined-benefit scheme was criticized as being faulty. The liabilities that sponsoring companies and plan members must pay for has increased substantially, which has caused some pension plans to reduce benefits to retired members, or even to shut down entirely.
do you know what a "weather derivative" is?
Category: glossary by R. Rojas from Canada
An instrument used by companies to hedge against the risk of weather-related losses. The investor who sells a weather derivative agrees to bear this risk for a premium. If nothing happens, the investor makes a profit. However, if the weather turns bad, then the company who buys the derivative claims the agreed amount. This is not the same as insurance, which is for low-probability events like hurricanes and tornados. In contrast, derivatives cover high-probability events like a dryer-than-expected summer.
Which foreign exchange platform has the smallest commission charges
Category: money by Makai M. From Tucson, United States
We recommend you to explore "UFX bank". You're don't have to pay commission in this one, the minimum deposit is also really small - only $100, the customer service is great, and also the platform graphics are completely soothing.
please tell me what the "preferred dividend" is
Category: glossary by I. X. From Dublin, Ireland
A dividend that is accrued and paid on a company's preferred shares. In the event that a company is unable to pay all dividends, claims to preferred dividends take precedence over claims to dividends that are paid on common shares. Preferred stock will typically pay much higher dividend rates than common stock of the same company. This is the main benefit of owning preferred shares.
do you know what the "delivered at frontier" is?
Category: glossary by A. Miranda from Cambridge, Canada
In international trade, a contract specification requiring the seller to deliver goods to a named destination, usually a border location, by a predetermined time. Up to the border, the seller is responsible for all risks and expenses associated with the delivery. Terms used in international trade, such as delivered at frontier, outline who bears the risks and expenses of transporting goods under international transactions. A variety of terms exist for various methods of transportation. Delivered at frontier is most often used when using ground transport, such as truck or rail, to supply the goods. It's important to realize that because this is a legal term, its exact definition is much more complicated and differs by country. It is suggested that you contact an international trade lawyer before using any trade term.
any online forex platform with a reliable server connection that you can suggest for me?
Category: technical by J. Duffy from Luxembourg
We believe "Easy Forex" is totally the forex site for you if you're looking for an online forex platform with the most rapid server connection. We're all the time excited when trying to connect to the server. It is no trouble at all to use the forex platform. You do not come upon the usual communication disturbances you normally find connecting to other servers, and the connection to the server is usually excellent.
please tell me what the "commodity exchange act - cEA" is
Category: glossary by B. D. From United States
An act passed in 1936 by the U.S. Government that provides federal regulation of all futures trading activities. This act replaced the Grain Futures Act of 1922. The Commodity Futures Trading Commission (CFTC) was created as a result of the CEA to monitor the U.S. Futures and options markets.
do you know what a "FT Eurotop 300" is?
Category: glossary by Harper M. From Longueuil, Canada
An index of the share prices of the 300 largest European companies, by market capitalisation.