In recent times many would-be investors simply refuse to enter the stock market, because of the risks involvedand fear of crash in stock market . . While it is true that crashes can happen, understanding what causes a crash and what the effects are can help set your mind at ease and can help you understand more about investing. What Happens When The Stock Market Crashes? A … [Read more...]
Check List of Things for Trading in Stocks
1.) If the lead stochastic crosses over the 20 band consider this a possible buy signal, and if it crosses below 80, then it would be a sell signal. 2.) Use several charts in different time periods for each stock you are trading. 60, 13, 8, 3, and 1 minute charts will enable you to see the bigger picture. If the 60, 13, and 8 minute charts are in an uptrend, look at the 3 / … [Read more...]
Interest Rate Swaps in Stock Market
An interest rate swap is a derivative in which one party exchanges a stream of interest payments for another party's stream of cash flows. Interest rate swaps can be used by hedgers to manage their fixed or floating assets and liabilities. Unlike corporate bonds, interest rate swaps do not involve risk on the principal amount[1]. They can also be used by speculators to … [Read more...]
Inflation Swap in Stock Market
An inflation swap is the linear form of an inflation derivative, an over-the-counter and exchange-traded derivatives that is used to transfer inflation risk from one counterparty to another. There are three main types of inflation swap. In a standard interbank inflation-linked swap, or zero-coupon inflation-linked swap, cash flow is exchanged on the maturity date. This swap … [Read more...]
Protective Put Option – Option Trading
A put option purchased for an underlying security that is already owned by the holder of the option. A protective put defends against a drop in the share price of the underlying security. A protective put strategy is usually employed when the options trader is still bullish on a stock he already owns but wary of uncertainties in the near term. It is used as a means to protect … [Read more...]