Hedging is a very important financial concept and process. Basically, it is a process by which you reduce risk and exposure from a risk asset by purchasing some sort of protection against a price drop. Often, this hedging protection is gained by using a futures contract. Futures are contracts that allow you to buy assets in the future at a price you have already agreed upon right now. The contract gives you the option but not obligation to buy an … [Read more...]
If you're a serious investor, you have almost certainly heard of value investing. This investing strategy is arguably the most prominent and well-known investing strategy in the world. Value investors are among the most successful investors and their methods have been well-proven and well-studied. Consider that many consider Warren Buffet to be the greatest investor of all time. Warren Buffet is also a well-known value investor. Warren Buffet … [Read more...]
Repo trading is an important part of any functioning market. Essentially, dealers for bonds can buy bonds using customer's money. The dealer posts the bond as collateral for the money borrowed. The repo market can refer to both the consumer level market, and also the central bank repo market. We will go over both repo markets in this article. With the Repo Market It's Important to Watch Out For Scams One thing that is important to … [Read more...]
When most people think about scalping, they think about people hawking tickets for sports games and other events, often at a substantial mark up. This is one definition of scalping, but in the investing world, the term can take on a whole new and very important meaning. Basically, investing scalpers look to generate profits off of small changes in price in assets. Instead of trying to secure one big gain on a stock or other asset, they will try … [Read more...]
If you're looking to invest in water, then a water etf is a great option. If you did a double take at the concept of investing in water, we don't blame you, but water is actually emerging as a very important investment for many traders. Think about it, markets are defined by supply and demand. Demand for water is immense. We need it to drink, industries need it for a huge range of industrial applications, and agriculture consumes vast amounts of … [Read more...]