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Bull Spread

An option strategy that achieves its maximum potential if the underlying security rises far enough, and has its maximum risk if the security falls far enough. An option with a lower striking price is bought and one with a higher striking price is sold, both generally having the same expiration ...

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Bear Spread

An option strategy that delivers its maximum profit when the underlying stock declines and has its maximum risk if the stock rises in price. The strategy can be implemented with either puts or calls. In either case, an option with a higher striking price is purchased and one with a ...

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Bank run (bank panic)

A series of unexpected cash withdrawals caused by a sudden decline in depositor confidence or fear that the bank will be closed by the charteringagency, i.e. many depositors withdraw cash almost simultaneously. Since the cash reserve a bank keeps on hand is only a small fraction of its deposits, a ...

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Barrier options

Option contracts that remain dormant until a trigger point (the barrier price) is reached, at which point the call or put option is activated, and results either in a long or short options position, or in the automatic exercise of an options position. One example is an up-and-in call. Assume ...

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B

Back-end loan fund A mutual fund that charges investors a fee to sell (redeem) shares, often ranging from 4% to 6%. Some back-end load funds impose a full commission if the shares are redeemed within a designated time period after purchase, such as one year, reducing the commission the longer ...

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A

Accrued Interest Interest earned between the most recent interest payment and the present date but not yet paid to the lender. Accredited investor Refers to a person whose net worth, or joint net worth with a spouse, exceeds $1,000,000; or whose individual income exceeded $200,000 or whose joint income with ...

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Forex Market News

Dollar/yen is down to ¥102.30 after starting the year above ¥105. South Africa’s rand at a 5-1/2 year low The Turkish lira tumbled 1.6% to a record low of 2.3360 per dollar The ¥103 level looks like a strong resistance – Deutsche Bank, JP Morgan and Morgan Stanley will support ...

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Breaking World news

European stocks top five-year highs as periphery rally continues Russia ready to float rubble next year U.K. retail sales climbed 5.3% on year in December vs +1.8% in November and blew past consensus of +2.6%. Fitch maintains Holland’s AAA rating – Japan forecasts GDP growth of 1.4% for 2014 – ...

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Euro at 8 month high vs US dollar

Euro has risen above $1.38 for the first time since November 2011, with the dollar continuing to be dragged down by expectations that the Fed will delay tapering its QE program until next year

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Forex Trading Tips

It’s proved and highly recommended not to trade on Mondays or after holidays, when the market has recently awaken Respect your stop order and don’t move it “cherishing hopes” Running two or more open trades gives an option to close some positions earlier and keep others running for higher profits. ...

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