What is Futures Trading? | Simply Explained | Beginner’s Guide
WEBMay 30, 2022 · Futures contracts lock in the current price of a commodity or stock and define the current fixed cost of the underlying asset and its expiry date. These contracts obligate the buyer to buy and the seller to sell, even if the price goes against the trade. As futures are leveraged, trades can become very profitable or incur a significant loss. Leverage means traders do not have to invest the ...
What is a Derivative? | Definition | Simply Explained - Finbold
WEBJun 8, 2022 · A derivative is a contractual agreement between two parties, a buyer and a seller, used by a financial institution, a corporation, or an individual investor. These contracts derive value from the underlying asset, a commodity like oil, wheat, gold, or livestock, or financial instruments like stocks, bonds, or currencies.
What is RSI Indicator? | Relative Strength Index Explained - Finbold
WEBSep 16, 2022 · The relative strength index (or RSI) is a popular technical analysis tool used in stock trading that indicates momentum by measuring the speed and change of price movements to assess overvalued or undervalued conditions in the price of that asset. The RSI is displayed as an oscillator, i.e., a line graph on a scale of zero to 100.
What are Chart Patterns? | Types & Examples | Beginner's Guide
WEBOct 27, 2022 · Types of chart patterns. There are two main types of chart patterns: Continuation patterns; Reversal patterns. In general, for both continuation and reversal patterns, the longer the pattern forms, and the larger the price movement within it, the more significant the predicted move once the price breaks out.
What is Intrinsic Value? Definition & Examples | Finbold.com
WEBMay 3, 2022 · These evaluations are done through fundamental and technical analysis and include several methods to account for qualitative, quantitative, and perceptual factors.. The disparity between market price and an analyst’s calculated intrinsic value can be a useful measure of investing opportunity. Knowing an investment’s intrinsic value is especially helpful to value investors with the goal of ...
MACD Indicator Explained | Definition & Examples - Finbold
WEBSep 23, 2022 · MACD indicator explained. The MACD indicator consists of three components: The MACD line: The main MACD line is generated by subtracting the longer moving average (26-period) from the shorter one (12-period). The MACD line helps determine upward or downward momentum, i.e., market trend; The signal line: The signal line is the EMA (typically 9 ...
What Is Dollar-Cost Averaging? | Definition & Strategies
WEBMar 9, 2022 · Dollar-cost averaging definition. Dollar-cost averaging (DCA) is a reasonably straightforward investment strategy of spreading out your stock or fund purchases by buying at periodic intervals and in approximately equal amounts over a long period. DCA requires the investor to invest the same amount of money regardless of the share price.
What is a Forward Contract? | Simply Explained | Beginner’s Guide
WEBJun 21, 2022 · A forward contract is a contractual agreement between two parties – a buyer and a seller – to lock in the current price of an asset at a set date in the future. A forward contract is the basis of derivative contracts, which are agreements that get their value from the underlying assets. It is important to note that a forward contract isn ...
Stock Average Calculator | Free Online Tool for Investors - Finbold
WEBExample. To calculate the average stock price, first calculate the total cost spent on the shares: 5 shares * $5 per share = $25, and 10 shares * $6 per share = $60; with $25 + $60 = $85 (the total cost). Then, calculate the total amount of shares bought: 5 + 10 = 15 (total shares). After which, calculate the average stock price by dividing the ...
10 Types of Cryptocurrency Explained | Definition & Examples
WEBJan 5, 2024 · A cryptocurrency is a new kind of digital asset that exists on a decentralized network called a blockchain.The term is made up of two constituent parts: “crypto” which is a shortened version of the word ‘cryptography,’ and “currency” which means a monetary denomination of value or simply ‘money.’Cryptography refers to the study of techniques or processes for securing ...
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