EDU Articles
Learn about investing, trading, retirement, banking, personal finance and more.
What is Stop-Loss Order?
A stop-loss order is appended to a securities position being held long or short, and stipulates that the security is to be sold or bought if the price moves beyond the stop price, at which point the investor seeks to "cut his losses," or limit his potential exposure to losses.
A stop-loss order will name a price below the market price on a long position and above the market price on a short position, at which point a sell order will be triggered for the long position and a buy order will be triggered to cover the short position, with the goal being to limit the potential losses to which an investor is exposed.
An investor might put a sell-stop on a long position at a price which marks the most losses an investor is willing to take on that position. The price might decline so sharply after the order is entered that even more losses might be taken by the time the transaction occurs, however, which is an unfortunate risk that investors may try to hedge against by putting a limit on the order.
With a limit on the order, the investor might effectively wait out a severe downturn by letting prices get back above a limit price, which is still below the stop price. A stop-loss itself does not have a limit built into it.
What is a Bond Coupon?
Learn about bond coupons, the fixed interest rate paid to bondholders. Discover how bond coupons determine a bond's value, provide a predictable income stream, and contribute to portfolio diversification. Understand the impact of bond coupons on the bond market and the economy.
What are some examples of Investment Instruments I can use?
Explore various investment instruments like stocks, bonds, mutual funds, ETFs, annuities, real estate, private equity, and hedge funds. Understand their potential risks, returns, and the role they can play in your financial growth strategy.
What is a Home Equity Conversion Mortgage?
Explore the concept of Home Equity Conversion Mortgages (HECMs), a type of FHA-insured reverse mortgage for homeowners aged 62+. Learn about the benefits, eligibility criteria, and repayment options of HECMs, and how they offer financial flexibility by converting home equity into cash.
What is the Investment Company Act of 1940?
Explore the Investment Company Act of 1940, a key U.S. financial regulation. Learn about its history, purpose, and impact on investment companies like mutual funds and ETFs. Understand its role in investor protection, transparency, and market integrity.
What is currency substitution?
Explore the concept of currency substitution, a practice where a country uses a foreign currency alongside or instead of its domestic currency. Learn about its types, including full, partial, and unofficial currency substitution, and understand the associated risks and benefits
What is Chapter 13?
Understand the concept of Chapter 13 bankruptcy and its impact on trading and investing. Learn about the process, debtor's repayment plan, and considerations for investors.
What is Bankruptcy Court?
Learn about inflation's impact on bankruptcy proceedings. Understand how inflation affects debtors' ability to repay, interest rates, and creditor dynamics. Get insights on managing finances amid economic changes. Find specialized bankruptcy attorneys for Chapter 7, 11, 9, and 13 filings.
How Do You Accept Bitcoin Payments for Your Store?
Explore how to accept Bitcoin payments in your store. Learn about Bitcoin payment service providers, in-person transactions, setting up your own Bitcoin node, and the role of Bitcoin wallets and exchanges. Expand your payment options and cater to tech-savvy customers with Bitcoin.
How to Use Time Machine in AI Screener?
Top Companies and Trends in Oil and Gas Exploration
Oil and gas industry trends: Explore top players like Exxon Mobil & Chevron in the oil & gas exploration sector. Learn about market trends, technological innovations, and the industry's future in a changing energy landscape.