Forex Glossary

Transaction Costs (Options) Definition

Definition The word trade cost identifies the charges related to the implementation of a trade and the maintenance of some posture. Transaction costs include brokerage commissions, exchange fees, in addition to fees imposed by the Securities and Exchange Commission. Explanation Before placing an order to purchase or sell an option, an investor needs to know the trade costs related to setting and keeping the positioning. Along with the premiums received

Index Weighting Definition

Definition The word indicator weighting denotes the approach employed within the calculation of an industry indicator. The factors utilized for indicator weighting determines just how much sway a single security is wearing the movement of this indicator with time. Explanation Also known as a stock exchange indicator, an equity indicator is an example of stocks, or stocks that are common, which function as a reference when you compare the operation

Lambda (Options) Definition

Definition The word lambda identifies some way of measuring the percent shift from the top covered an option for each and every percent shift in the purchase price of the underlying advantage. Lambda allows the consumer to comprehend the significance of the option’s price into an alteration in the underlying advantage ‘s price. Explanation Lambda can be really a step which makes it possible for an investor to know the

Net Sales on Credit Definition

Definition The monetary accounting duration net earnings online can be utilized to refer to an amount of earnings which entails the usage of charge from clients. Online earnings online may be practical step to ascertain the potency of the corporation ‘s collection policy in addition to the vulnerability of an organization to charge sales. Calculation Net Sales online Credit = Revenues – Cash Sales – Allowance for Doubtful Accounts Explanation

Convertible Preferred Stock Definition

Definition The word convertible preferred stock can be applied to clarify just one of the types of preferred stock which might be issued with a provider. To increase the marketability with this investment, the non preferred stock provides the holder with the best to market the investment to get shares of stockexchange. Calculation The multitude of shares of stock received for each share of convertible preferred is referred to because

Asset Turnover Rate Definition

Definition An efficacy ratio, the asset turnover rate can be actually a step of direction ‘s potential to make use of resources to produce earnings. It measures the number of earnings (revenues) generated per dollar of resources. As is trivial with all efficacy metrics, the formula utilizes advice from the balance sheet (resources ) in addition to the revenue statement (earnings ). Calculation Asset Turnover Rate = Sales / Average

Gross Profit Margin Definition

Definition The monetary ratio called gross profit margin can be a way of measuring a business ‘s capacity to make a item or supply an agency. The metric will do so by simply assessing the impact the price of products sold is wearing earnings. Calculation Gross Profit Margin = Gross Profits / Revenues Where: Gross Profits = Revenues – Cost of Goods Sold The gross profit margin is also expressed

Current Ratio Definition

Definition The present ratio is a measure of bandwidth. The calculation merely takes two inputs out of the balance sheet: current assets and current liabilities. The existing ratio measures that the business ‘s means to pay for debt coming due within the next 1-2 months. Calculation Current Ratio = Current Assets / Current Liabilities Explanation Current assets are those tools which may be transformed into cash in under 1-2 weeks.

Hedge Funds Definition

Definition The word hedge fund identifies a investment and small business arrangement that pools funding from individuals and invests in various securities. The aim of a hedge fund will be to provide investors with above average yields by supposing above average threat. Explanation While a hedge fund may resemble a mutual fund, but there are numerous differences. As an instance, a hedge fund manager will be paid in 2 ways:

Extrinsic Value Definition

Definition The word extrinsic value denotes the sum of money delegated to an advantage that’s beyond its inherent value. External variables, for example passes will impact the marginal worth of an advantage. Calculation Extrinsic Value of a Call Option = Option Price – (Stock Price – Strike Price) Extrinsic Value of a Put Option = Option Price – (Strike Price – Stock Price) Explanation Also known as an occasion top,