Terms of trade is usually used to refer to the value of exports that a country sends abroad in comparison to the value of imports it brings in. Generally speaking, countries want to have positive “terms of trade” and want to export more than they import. However, there can be exceptions to this general “rule”. A terms of trade definition can get quite technical, and we’re going to dig deeper. It's important to understand that it refers, more or … [Read more...]
Confused by the term “arbitrage”? Don’t worry, we’ll define arbitrage in this article. Arbitrage is a rather advanced investing and trading method by which you simultaneously purchase and sell something, and thus lock up price differences. That probably sounds a bit odd. After all, aren’t you supposed to purchase something precisely so you can hold on to it and let it appreciate in value? Even day traders and technical analysis traders usually … [Read more...]
Have you heard about copper etfs? These financial assets are very popular among traders who are looking to diversify away from things like stocks and bonds. These more traditional assets are great, of course, but it's a good idea to spread your bets and to consider more exotic investments. Copper is a very important metal. In fact, it is vital for the world economy. Electronics, infrastructure, health equipment, and numerous other … [Read more...]
Stock screeners are automated tools that allow investors to screen stocks by user defined or preset criteria. There are thousands of stocks out there, and it is essentially impossible for investors to keep track of all of them. Using automated tools to hone in on stocks that you might want to invest in, however, can make it more manageable. Trying to sort through stocks by hand can be time consuming. Fact is, most investors know roughly … [Read more...]
A put option allows the buyer of the options the right, but not obligation (this is important!) to sell a specified asset at a specified price on a specified date. Lots of specifics right? And right now it might sound confusing, but it'll make sense shortly enough. So what is a put option in layman terms? Truthfully, there is no layman terms or way to define put options as they are semi complex financial instruments. More or less, options allow … [Read more...]
