What is Warrants trading? Warrants are financial derivatives, which are based on a contract that gives the buyer (who pays a premium for the purchase of that contract) the right, but not the obligation, to buy or sell the underlying asset (indices, stocks, commodities, among others). Although they appear to be the same as financial … Read more
ETFs are exchang traded funds, being very powerful financial products. By exchange-traded fund we mean that there is a fund manager that buys and sells financial assets (such as stocks, currencies, bonds, even other funds, commodities, etc.) in order to match the performance of its portfolio to a certain objective. The objective can range from … Read more
CFDs (Contracts For Difference) are financial derivatives that replicate an underlying asset such as futures and financial options (gold, shares, bitcoin, indices, currencies, etc.) in which the investor and the broker agree to exchange the difference between the bid and ask prices of an underlying asset. What is a Contract For Difference They are contracts … Read more
Binary Options are a financial derivative designed to speculate on whether the price of the asset to which the derivative is replicating, ends up above or below the price, in the marked time (sometimes in low timeframes such as 1 minute for example). They are different from the financial options that we saw before, since … Read more
Futures contracts are an agreement in which the parties undertake to buy or sell an asset at a predetermined price on a specific date in the future. They were the first financial derivatives used as a hedge against a bad harvest, bad weather, among others, but nowadays their main use is speculative. The most important … Read more
Option contracts are instruments derived from one financial asset since their value depends on the value of this other asset, which is referred to as the underlying asset. The underlying asset of the options can be stocks, indices, currencies, commodities, bonds, etc. We will look at stock options, since once you understand the subject you … Read more
Cryptocurrencies are digital means of exchange (virtual currencies) and can therefore be exchanged like any other currency. Bitcoin was the first to start trading in 2009, outside the control of governments and financial institutions, i.e. in a decentralised manner. These types of virtual currencies have a limit and are created by “miners”. They are so … Read more
Trading stocs definition: Stocks are equity investments, because their return is not fixed as it depends on market fluctuations. Stocks represent part of the capital of a corporation, so that the holder of shares is the owner of the company in the proportion of his holding. In other words, they are property titles issued by … Read more
The Forex (Foreign Exchange) market is the world’s largest and most liquid market (also known as the foreign exchange, currency or FX market) where one country’s currency is traded in exchange for another currency. The EUR/USD (euro against the dollar) is the most traded currency pair. What is Forex trading and how does it work? … Read more