by Henry Liverman | Jul 22, 2021 | Market Definitions
A statistic that measures how much two securities move in relation to each other. It may also be used to measure the movement of a stock in relation to an index (for example, the S&P 500). This can give investors an idea of how the stock is performing in...
by Henry Liverman | Jul 22, 2021 | Market Definitions
The world’s largest options exchange. The Chicago Board Options Exchange (Cboe) was founded in 1973 with contracts focusing on individual equities, indexes, and interest rates. It offers options on more than 2,200 companies, 22 stock indices, and 140...
by Henry Liverman | Jul 22, 2021 | Market Definitions
A hands-on approach requiring an individual to act in the role of the portfolio manager. The goal of active investing is to beat the average returns a trader would expect if they simply invested and left the investments alone. This involves a far deeper level of...
by Henry Liverman | Jun 2, 2021 | Market Definitions
Or “R Unit,” a unit of risk is a concept used to dampen the emotional strain of measuring trading performance in dollars. It is represented as a ratio and provides a means to compare real-world trading performance versus probable performance. It can be...
by Henry Liverman | Jun 1, 2021 | Market Definitions
In decentralized finance (DeFi), yield farming is a process that allows a cryptocurrency holder to lock up their holdings and receive rewards from them. Specifically, it’s a process that allows the holder to earn fixed (or variable) interest by investing their...
by Henry Liverman | Jun 1, 2021 | Market Definitions
A statistical measurement of the dispersion of returns for a given security or market index. In general terms, the higher the volatility, the riskier the security. Within securities markets, volatility is often associated with big swings in either direction. For...
