The implied rate is the interest rate that is implied by the price of a financial instrument. For example, if the price of a bond is $100, the implied rate is the interest rate that would make the price of the bond equal to $100. The implied rate can be different from the actual interest … Read more
A Futures Commission Merchant (FCM) is a broker that is registered with the Commodity Futures Trading Commission (CFTC). FCMs must also be members of the National Futures Association (NFA). An FCM is a broker that executes orders and trades for customers in the futures markets. FCMs must be registered with the CFTC and must also … Read more
The variation margin is the amount of money that a futures contract holder must put up or deposit to cover losses due to price changes. It is also called the mark-to-market margin. The variation margin is not the same as the initial margin, which is the amount of money needed to enter into a futures … Read more
Bond futures are a type of derivative contract that allows investors to speculate on the future price of a bond. The contract is an agreement to buy or sell a bond at a certain price on a certain date. Bond futures are traded on exchanges and can be used to hedge against changes in the … Read more
The convenience yield is the difference between the actual yield of a security and the theoretical yield. The actual yield is the return that an investor receives from holding the security, while the theoretical yield is the return that an investor would receive if the security was held in a perfect market. The convenience yield … Read more
Cash-and-carry arbitrage is a trading strategy that involves simultaneously buying an asset and selling a future contract on that asset. The trade is typically entered into when the asset’s price is low and the futures contract’s price is high, in the hope that the asset’s price will increase before the futures contract expires, allowing the … Read more
A certificate of deposit, or CD, is a type of savings account that has a fixed interest rate and a fixed term of investment. CDs are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per depositor, per bank. CDs typically offer a higher interest rate than a traditional savings account, and the … Read more
A Chartered Wealth Manager (CWM) is a professional designation granted by the Institute of Chartered Wealth Managers (ICWM) to individuals who meet the organization’s educational and experience requirements. The CWM designation is recognized internationally and is considered to be one of the highest standards in the wealth management industry. To become a CWM, candidates must … Read more
The occupation of security analyst is a finance-related position within the securities industry. Security analysts research and analyze securities, providing recommendations to investors and portfolio managers. They may also provide guidance to securities firms on behalf of their clients. Security analysts typically have a bachelor’s degree in business, economics, or finance. Some positions may require … Read more
The Series 24 license is a registration held by supervisory personnel at broker-dealers who are responsible for supervising sales of securities products, including mutual funds and variable contracts. The license is also held by those who manage investment banking activities and private placements. The Series 24 examination covers topics such as the types of securities … Read more
