At inception, swaps are transacted at zero cost to both parties. A swap with a zero cost is called a...
The option contract (option) is a zero-sum game (not a win-win situation) because the gains made by the option's buyer...
An equity call swap is similar in concept to a basis swap as both involve two variable legs. The former...
Churning is a manipulative trading tactic (a type of volume manipulation) whereby a stock is excessively traded to inflate its...
The price movement that is caused by executing a trade/ trading order. Positions to buy or sell (long positions/ short...
Leverage in all its forms involves the process of magnification. Financial leverage and physical leverage are used to produce some...
Financial leverage changes a company's returns and risk. As far as profitability is concerned, financial leverage affects a company's earning...
The income statement displays the financial result of a company's operations over the course of its financial year or a...
Both operating leverage and financial leverage involves some form of magnification. They magnify changes to earnings due to the presence...
A directional hedge fund is a hedge fund that doesn't hedge, whether partially or fully. A directional fund maintains some...