RSI

The Relative Strength Index is a momentum indicator used to determine of a stock or asset is overbought or oversold.  The RSI is usually represented as a oscillating line graph from 0 – 100.  The standard interpretation is that a value over 70 indicates that a...

Risk-Adjusted Returns

Also referred to as the Sharpe Ratio, a risk-adjustment return is an analysis ratio that provides insight into how risk compares to return in an investment.  It measures to reward-to-variability ratio of a potential investment by dividing the risk-adjusted return with...

Reserve Currency

A foreign currency that is held in large reserves by a government or other monetary authority.  A reserve currency is used by that government to participate in the global economy and to back said government’s own currency.  As a result of the Bretton Woods...

Bloomberg Terminal

Software that allows potential investors access to the Bloomberg data service.  Advantages of a Bloomberg terminal include live access to global financial data in real time as well as news feeds and messages.  They’re also used to facilitate stock and option...

Quantitative Easing

A non-traditional monetary policy in which a central bank purchases longer-term securities directly from the market.  This has the effect of increasing the money supply as well as working to encourage lending and investment.  When the bank buys these securities, it...

Put

An options contract that gives the owner the ability to sell an underlying security at a pre-determined price within a pre-set time frame (also referred to as the “strike price”).  However, it is not a requirement that the options contract holder buy at...