Bitcoin is a digital currency that is secured and maintained by a peer-to-peer network of millions of users online, making it a decentralized, fast, secure, cheap, and efficient as a digital currency. Bitcoin is a digital currency that can be acquired via traditional currency, trades, or work, and can be used for transactions in an ever-expanding network of users and merchants. It is legitimized and maintained by a peer-to-peer network of millions of users online, making it a decentralized, fast, secure, cheap, and efficient digital currency that exists independent of any centralized gatekeepers such as governments, regulated markets, or corporations. Continue reading...
Over-the-Counter securities transactions are done outside of formal exchanges, and the term could refer to private investments and contracts or transactions in unlisted securities, such as penny stocks. The major exchanges have requirements for being listed, pertaining mainly to the size of the company offering equity shares and the nature of the securities. Resources such as the Over the Counter Bulletin Board and "pink sheets" help to facilitate trades that cannot be performed on the largest exchanges, but there are several caveats to bear in mind. Continue reading...
A security is a marketable ownership contract which entitles the owner to the right to use the contract as a type of currency backed by a specific asset, which could be partial ownership in a company, a debt (bond), or a derivative interest. Securities are broadly categorized into debt securities (e.g., bonds), equity securities (e.g., stock), and derivatives (e.g., futures, options, etc.). They will generally be issued by a company or government entity and will entitle the owner of the contract the right to trade the ownership interest for value in the open market. Continue reading...
Forward contracts are agreements to exchange specific assets on a specific date, at a price determined at the outset. Forward contracts are similar to futures contracts, but they are over-the-counter private contracts drafted for specific purposes, quantities, and dates that satisfy the specific needs of the counter-parties. These contracts are mostly entered into by institutional investors seeking a hedge against risks such as interest rates and exchange rates. Continue reading...
Hedging against future price risk was the main reason Futures contracts came into being. If an investor or a business knows that they need to acquire an asset or security at a future date, they might go ahead and agree to a price and have it in writing on a Futures contract. A futures contract means that an item has been sold at a stated price, and only awaits settlement at a future date. This will protect them from the risk that the price will move unfavorably in the future, and it will allow them to balance books and plan a budget with more certainty. Futures contracts are standardized and traded on exchanges. Continue reading...
A market-with-protection order starts out as a regular market order to buy or sell at the market price. This kind of order will cancel the remainder of the order if the price moves before the entire order is filled, and it is immediately re-entered as a limit order with a price just above or below the market price. A market-with-protection order allows investors to hedge against the change that prices will move unexpectedly before their entire order is filled at the desired price. So an investor would submit an order to be executed at the current market price, and then, if the price moved, the order would automatically cancel the rest of the order and resubmit it as a limit order. Continue reading...
Currency futures are derivative contracts that trade on regulated exchanges around the world. Like forward contracts, they name a specific amount of one currency which is to be exchanged for a specific amount of another currency at a future date. Futures name a specific amount of one currency which will be exchanged for a specific amount of another currency at a future date. Like other derivative contracts that trade on exchanges (e.g., options), futures are transferable and are traded as the market calls for up until their expiration. Investors can short them (sell to open) and hold them long (buy to open), and can close their positions as they see fit without riding out the contract to the expiration date. Continue reading...
A swap is an over-the-counter agreement between institutions to "swap" one thing for another, usually the cash flow related to interest-bearing instruments. Given the negotiable and over-the-counter nature of swaps, there are many permutations and manifestations of this concept. The most common is the interest rate swap, in which the counter-parties agree to pay the interest due on principal amounts which are not exchanged. Continue reading...
Corporate equity is retained earnings plus common shares outstanding. On a corporate balance sheet, the retained earnings and the outstanding common stock capitalization combined would be considered the corporate equity, also called shareholder’s equity / owner’s equity. Of the total corporate equity, the portion representing common stock equity is only the capital raised through the issuance of shares in an IPO (initial public offering), where payment for those shares was paid to the company. Subsequent trading in those shares does not affect the common stock equity on the company books. Continue reading...
These are generally referred to as currency swaps or cross-currency swaps , since “foreign” is a little redundant (currencies are from different countries anyway). Central banks and large institutions sometimes swap principal amounts and loan interest in their domestic currency in exchange for a foreign currency, to provide liquidity and a hedge. Currency swaps are where banking institutions, particularly central banks, exchange a loan in one currency for a loan in another currency. Continue reading...
Forex is the common name for the Foreign Exchange market, an international network of currency trading that is active 24/7. Forex is by far the most active and highest-volume market in the world, because it involves large trades between international institutions in an effort to diversify or consolidate their exposure to various currencies. Individual traders can also participate, usually by trading nano-lots, which are 100-unit increments of currency. Continue reading...
While there aren’t that many ways to use institutional-level, regulated vehicles to get exposure to bitcoin and other cryptocurrencies, there are some, and the market will likely expand. Money managers are finding ways to offer managed investments that offer exposure to cryptocurrencies, despite the hurdles presented by regulators and skepticism from large financial companies. On the over-the-counter market OTCQX, you can buy shares of the Bitcoin Investment Trust from Grayscale (Nasdaq: GBTC). This fund has seen massive gains recently but does come with a 2% fee. The Chicago Mercantile Exchange (CME) has stated that it would like to start trading cryptocurrency futures, but it may be a little time before this becomes a reality, due to significant red tape and guidance needed regarding cryptocurrencies. Continue reading...
A derivative is a security which monetizes the risk or volatility associated with a reference asset. Derivatives derive their value from speculation surrounding an underlying or reference asset. The reference asset could be another security, an interest rate, or an index, for example, but there are also derivatives based on future weather patterns. Derivatives come in many forms; examples include options, swaps, and futures. Some derivatives trade on exchanges and some are Over-the-Counter (OTC). Derivatives might be used for speculation or hedging. Continue reading...
A rate swap is the exchange of cash flows on underlying principals which are not exchanged. It is an over-the-counter contract between two institutions to trade the cash flows on two comparable principal amounts, but not to exchange the actual principal amounts. Institutions might prefer this arrangement because they only have access to floating interest rates or are overweight in them and would prefer to have some fixed rate interest cash flow, or vice versa. These swaps might occur between banks on opposite sides of the world to take advantage of rates elsewhere or to simply diversify their risks. Continue reading...
The Federal Trade Commission (FTC) was originally created to encourage market competition and to protect consumers by breaking up monopolies and monitoring mergers and acquisition activity. It has now branched out into more areas in the pursuit of consumer protection and fair markets. The FTC is now comprised of three bureaus: Consumer Protection, Competition, and Economics. They protect consumers from fraudulent business activity and monopolistic business practices. Continue reading...
Dive into the future of cryptocurrency trading with AI-driven robots that are changing the game. Discover how cutting-edge technologies like pattern recognition and machine learning are empowering traders to outperform in the dynamic world of Bitcoin, Ethereum, and more. Uncover the secrets behind platforms like Ticeron, where sophisticated algorithms offer real-time market analysis and adaptive strategies for unparalleled trading precision. Welcome to the new era of trading, where AI meets crypto for unmatched success. Continue reading...
Transform your investment strategy with Tickeron's Trend Prediction Engine (TPE), where cutting-edge AI meets financial foresight. Dive into a world where thousands of stocks, ETFs, and mutual funds are analyzed to predict market movements, guiding your buy, sell, or hold decisions with unparalleled precision. Continue reading...
Markets experienced sharp shifts from November 11–15, 2024, with major indices under pressure and gold prices tumbling. Discover how sector performances and market volatility shaped the week’s trends. Continue reading...
Business-to-Consumer (B2C) is a prevalent sales model where businesses sell their products or services directly to individual consumers. This model stands in contrast to the Business-to-Business (B2B) approach, where transactions occur between businesses. B2C has evolved significantly with the advent of the internet, giving rise to e-commerce and transforming the way consumers shop. Continue reading...