FX Forwards

Traders can use this information to make informed decisions about buying and selling currencies. Forward Points are basis points added or subtracted from the spot price of a currency pair to derive the futures price on a predetermined delivery date. … Continued

EBITDA Margin Formula, Examples, Vs Gross Margin

If a company has a higher EBITDA margin, this means that its operating expenses are lower in relation to total revenue. The EBITDA margin takes the basic profitability formula and turns it into a financial ratio that can be used … Continued

Revaluation: Definition, Examples, Vs Devaluation

The original 100,000 USD recorded on May 15th is now worth (revalued at) 150,000 USD on May 31st due to the exchange rate fluctuation. For example, suppose a government has set 10 units of its currency equal to one US … Continued

Fama French three-factor model Wikipedia

As shown above, the Three-Factor Model allows classification of mutual funds and enables investors to choose exposure to certain risk factors. This model can also used to measure historical fund manager performance to determine the amount of value added by … Continued

What is the difference of Accounts Payable & Trade Payable?

Even after she sells the remaining shares to pay down the loan, she still owes an additional $1,000. That amounts to a total loss of $4,000 (her original $3,000 investment plus an additional $1,000 to satisfy the terms of the … Continued

Modified Duration Meaning, Formula, Applications, & Limitations

Fixed-income traders will use duration, along with convexity, to measure and mitigate the level of risk in their portfolios. The acceleration of a bond’s price change as interest rates rise and fall is called convexity. Modified duration is a formula … Continued