How to buy mortgage-backed securities You can buy mortgage-backed securities (MBS) through your bank or broker with roughly the same schedule as any other bonds. You would pay between 0.5 and 3 percent, depending on the size of the bond and some other factors. Ginnie Mae securities come in denominations of $25,000 and higher. For those on a lower budget, you can buy Freddie … [Read more...]
Ways to making money in future market
For many investors, the futures markets, with all of the different terms and trading strategies, can be very confusing. There are significant profits to be made in the futures markets but it is important that you understand how the different types of markets work and how you can achieve those profits consistently. This article explains how each market works and the different … [Read more...]
Market Cycles: The Key To Maximum Returns
We've all heard of market bubbles and many of us know someone who's been caught in one. Although there are plenty of lessons to be learned from past bubbles, market participants still get sucked in each time a new one comes around. A bubble is only one part of an important phase in markets, so if you want to avoid being caught off guard, it is essential to know what the … [Read more...]
How to Design Hedges?
The actual design of a hedging strategy boils down to a simple, three-step process: Identify Suitable Securities A good hedge often uses the cheapest possible security that offers the protection needed. For example, in the retail situation above, using put options on the retail ETF may be cheaper than purchasing a full short position, while offering the same benefits as … [Read more...]
The Budget – The Financial Management Tool
The Budget – The Ultimate Financial Management Tool I would like to start with an set of example : look it as a Rocket Scientists would never begin construction on a new booster rocket without a detailed set of design specifications. Yet most of us go blindly out into the world without an inkling of an idea about finances and without any plan at all. Not very smart of … [Read more...]