What is Open Interest and What Does it Tell Us? Open interest, the total number of open contracts on a security, applies primarily to the futures market. Traders often look to the open interest of various contracts to gauge market sentiment,...
Read MoreInitial margin is a key concept in the world of financial markets and is used to ensure that parties involved in a trade have the necessary funds to fulfil their obligations. It is an important risk management tool that helps to prevent default and...
Read MoreMargin trading is a popular investment strategy that allows traders to buy securities with borrowed money. This guide will provide an overview of what margin trading is, how it works, and the risks and rewards associated with it. What is Margin...
Read MoreIn the world of commodity markets, the terms "contango" and "normal backwardation" are often used to describe the relationship between the spot price and the future price of a commodity. These terms are important to understand because they can have...
Read MoreA Contract for Differences (CFD) is a financial agreement between two parties that allows for the exchange of the difference in the value of an underlying asset between the time the contract is entered into and the time it is closed. These contracts...
Read MoreFutures are financial contracts that obligate the buyer to purchase a specific asset at a predetermined price and date in the future. They are primarily used for hedging, which is a risk management strategy that aims to offset potential losses from...
Read MoreA floor trader is a type of stock trader who conducts transactions on the floor of a stock exchange. They are also referred to as "local traders" or "specialists." Floor traders buy and sell stocks, options, and other securities on behalf of...
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