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...
by Henry Liverman | Jun 1, 2021 | Market Definitions
A part of a group of measurements known as the “Greeks” which are used in options pricing. Vega is the Greek that measures an option’s sensitivity to implied volatility. It is the change in an option’s price for a one-point change in implied...
by Henry Liverman | Jun 1, 2021 | Market Definitions
A bullish pattern created by a sharp V-shaped trough. The trough is created by investor irrationality causing a sudden price fall and a subsequent reversal of the short-term bearish movement. Thus, a V Bottom often occurs in a bearish trend and announces a trend...