A dual currency deposit is an investment in which the investor agrees to deposit a certain amount of money in one currency, but receives interest payments in a different currency. The investor may also be able to take advantage of any changes in the exchange rate between the two currencies. Can I lose money in … Read more
Covered calls are a type of investment strategy where you sell call options on an asset you own in order to generate income. How do you pick stocks for covered calls? When looking to pick stocks for covered calls, it’s important to consider a few key factors. Firstly, you want to look for stocks that … Read more
Put Option: What It Is, How It Works, and How to Trade Them. Can I buy put today and sell tomorrow? Yes, you can buy a put option today and sell it tomorrow. However, it is important to note that options are a derivative product, which means that their value is derived from the underlying … Read more
. Options Strike Prices: How They Work, What They Mean, and an Example. How do you choose a strike price for call options? There are a few different factors to consider when choosing a strike price for call options. First, you need to think about what your goals are for the trade. Are you looking … Read more
A put is a type of option where the holder has the right, but not the obligation, to sell a security at a specified price within a specified time period. The holder of a put will profit if the price of the underlying security falls below the strike price before the expiration date. The writer … Read more
Definition, Meaning, and Examples. What are tranches? Tranches are a type of investment that refers to a portion of a debt or security that is divided into separate parts. Each tranche has different characteristics, such as maturity date, interest rate, and credit quality. What is another word for batch? There is no definitive answer to … Read more
The Bank Bill Swap Rate (BBSW) is the benchmark interest rate for Australian dollar-denominated debt securities. It is used as a reference rate for pricing debt securities, collateralized debt obligations, interest rate swaps, and other derivatives contracts. The BBSW is calculated by the Australian Financial Markets Association (AFMA) on behalf of the Reserve Bank of … Read more
The term “implied volatility” (IV) refers to the estimated volatility of a security’s price. IV is a key component of options pricing and is used by traders to determine the likelihood of a security’s price movement. IV can be used to help you buy low and sell high. When IV is low, it means that … Read more
Vomma is the second order sensitivity of an option’s vega to changes in implied volatility. It is a measure of an option’s sensitivity to changes in implied volatility, and is also known as “skew risk” or “volatility risk.” What is Zomma? An option is a contract that gives the holder the right, but not the … Read more
A straddle is an options trading strategy that involves buying both a call and a put on the same underlying asset, with the same strike price and expiration date. The strategy is designed to profit from a significant move in either direction. If the underlying asset remains relatively unchanged, the trader will still profit from … Read more
