Market risk appetite
A measure of how much risk an investor is willing to take on a given trade, stock, option or security. A willingness to take on high risk may indicate an over-valuation in a particular stock or asset that may or More...
Macro Fund
A hedge fund that prefers to profit from expected macroeconomics, such as changes in national unemployment, national income, GDP, inflation/stagnation or price levels. By including a vast array of financial instruments More...
Liquidity
Liquidity refers to what degree an asset or security can be sold or purchased in the open market without reducing the asset’s price. The higher the demand for the asset, the easier the asset is to liquefy, thus More...
Correction
A change, usually negative, of at least 10% in the markets. Stocks, bonds, commodities and indexes can all be affected by a reverse movement to adjust for an overvaluation. While usually temporary in nature, corrections More...
Central banking stance
An opinion or point of view, in this case, referring to a central bank’s opinion of the national economic status. A central banks’ stance is indicative of the direction of the nation’s economic performance. More...
Central Bank
A central bank is an establishment that oversees the monetary system for a single nation or group of countries. With various responsibilities, many modern central banks do more than simply regulate money flow More...
Historical Volatility
Also known as “statistical volatility”, historical volatility means the realized volatility of a certain financial instrument and measuring how much the deviation occurs from the average price during said time. The More...
Intrinsic Value and Extrinsic Value (of an option)
Intrinsic value, or actual value or inherent worth of a stock, company or an asset, is based on the overall perception of its true value that incorporates all parts of the company, stock or asset. This may or may More...
Delta
The Greek term Delta is used to assess how much an option’s price changes when the underlying security’s price fluctuates. This is a type of tool used to balance a portfolio that includes equal amounts of positive More...
Covered Option and Covered Call
A covered option gives investors less exposure to risk than a naked trade where the investor does not own the underlying security that the investor is hedging against. If the underlying asset value does not fall, More...