Date Last Updated: July 21, 2019

Tag: institutional investors

  • Investing

    Swaps

    “Contracts for Difference” are popularly known as “swaps”, with the most common types being Equity Swaps and Interest Rate Swaps. All contracts for difference have as their basis an exchange between two parties that allows each party to realize a benefit, not necessarily a profit, from the exchange. It may be that one party seeks to reduce their level of risk engendered by their ownership of ...

  • Investing

    Futures

    Futures, in the financial sense of the word, are closely related to Options but with one crucial difference: while Options contracts give their purchaser the right to buy or sell a certain commodity or security by or at a certain date, a Futures contract imbues the trader with the obligation to settle the contract. In this respect, futures contracts entail a certain level of urgency that ...

  • Investing

    Index Funds

    Index funds are a type of Exchange Traded Fund (ETF) that focuses on the performance of specific stock indices, as opposed to other types of ETFs that are based on oil or other commodities. Index funds are appealing to certain kinds of investors because they are inherently more stable than investing in specific stocks. Index funds spread the risk factor over the entire index, which in the ...

  • Investing

    Currencies

    Foreign Currencies are traded regularly, usually by large investment banks or institutional investors on the Foreign Exchange Market. This foreign exchange trading is commonly known as Forex or “FX Trading”. In most cases, the values of the world’s currencies are not locked against one another. In fact, their relative values change by the second, and this provides opportunities for long or ...