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What is “contango?”
Contango is when the price of a futures contract is higher than the current spot price of a commodity, and the expected future spot price. Some contango falls within the normal range, but too much is generally unfavorable. Contango means that the price of a futures contract has become inflated beyond the expected price range of a commodity. Backwardation is the word for the opposite of contango, in which futures contracts are being sold for less than the current spot price and below the probable future spot price. Some backwardation and contango is part of life and considered normal, but contango markets can have a particularly negative impact on some ETFs. Continue reading...
What is a commodity etf?
Commodity ETFs are focused on tracking the performance of commodity prices and their derivatives contracts. ETFs are like mutual funds that trade intra-day like stocks, but the volatility of commodities prices can make these equally unpredictable. Commodity ETFs are intended to track the performance and price movements of commodities and their derivatives. All sorts of commodities can and have become part of an ETF offering, from gold to grain, cattle, and coffee, and even US and foreign currencies. Each commodity has its peculiarities and it would be good to know about the market for each commodity that you intend to invest in. Continue reading...
What Are Futures in the Stock Market? A Comprehensive Overview and Practical Guide
Dive into the world of futures in the stock market. Explore the significance of futures contracts, their types, and the balance between risk and reward. Learn the history and the role of traders in shaping the futures landscape. Continue reading...
What Are the Most Effective Ways to Measure Stock Price Volatility?
Volatility is the heartbeat of the stock market, and for investors, it represents both opportunity and risk. Navigating the ebb and flow of stock prices requires a robust understanding of volatility and its implications. In this article, we'll examine various measures of stock price volatility to determine which offers the most insightful reflection of a security's fluctuation risk. Continue reading...
What is the Short Interest Ratio?
The Short Interest Ratio (SIR) measures investor sentiment for a given company and is calculated using the number of shares being shorted divided by the average daily trading volume of the stock. Also called the short ratio or float short, the SIR is a ratio of the number of shares being shorted divided by the average daily trading volume for the stock over the last 30 days. The ratio can be interpreted as the number of days it takes short sellers to repurchase borrowed shares, or an approximation for the number of shares that have been sold short and not yet covered as a percentage of all trading volume. Continue reading...
What is Porter's Five Forces and How Can It Shape Your Business Strategy?
Unravel the secrets of business competition with Porter's Five Forces, a groundbreaking model that deciphers the intricate dynamics shaping every industry. From fierce rivalries to the silent power of suppliers, from the demands of discerning customers to the looming threat of substitutes and new entrants, this model offers a panoramic view into the very heartbeat of business strategy. As industries evolve and competition intensifies, Porter's Five Forces stands as a beacon, guiding companies to strategic brilliance. Dive in to understand how these forces can make or break your business success, and equip yourself with the insights to navigate the complex waters of industry dynamics. Embrace the power of knowledge and steer your business towards unparalleled success. Continue reading...
What is present value?
The price in today's dollars for an asset which will appreciate or depreciate to an amount which may be known at a specific date in the future. One simple example of Present Value is the amount that needs to be invested in order to grow to a specific amount later, if the rate of return and length of time are known. So if someone wanted to have $50,000 to buy a boat in 5 years, and they could get 5% on a guaranteed investment, they would need a lump sum investment of about $39,000 to get them there. Continue reading...
Top Tech and Service Stocks to Watch
In the ever-evolving landscape of the stock market, investors are always on the lookout for promising opportunities. One sector that has consistently captured the attention of investors is the technology and services sector. Within this sector, there are notable companies that stand out due to their impressive performance and market presence. In this article, we will delve into the theme of technology and services and highlight some of the top stocks that investors should keep an eye on. Continue reading...
What are Multichains and Sidechains?
Sidechains are blockchains which handle assets off of the main blockchain and are able to return them to the main blockchain at a future date. As you understand by now, blockchains are comprised of interconnected computers serving as nodes in a decentralized consensus network. Everything that happens to assets on that blockchain is validated and recorded on that blockchain. If assets are taken to another chain, however, where different protocols may apply to suit the needs of the parties using the assets, this may be called a sidechain. Continue reading...
What are Credit Cards and Which Type of Credit Card is Right for You?
In the digital age, credit cards have become more than just a convenience; they're a cornerstone of modern finance. Originating from an unexpected dining mishap in 1949, these financial tools have evolved into global powerhouses, enabling seamless transactions worldwide. But what really lies behind that piece of plastic or metal in your wallet? From the intricate mechanics involving issuing banks, payment networks, and merchants to the diverse types available – rewards cards, store-specific cards, and even secured cards for those building credit – the landscape is vast and varied. Responsible usage can unlock benefits, from building a robust credit history to accessing premium rewards. However, with power comes the need for knowledge. Dive deep into the world of credit cards, understand their transformative impact on economies, and discover how to harness their full potential in our comprehensive guide. Continue reading...