Difference Between Arbitrage and Speculation

Profits are the primary goal of trading in the markets. Traders and investors have devised a variety of financial strategies to make money from market movements. While some strategies have lower risk and provide adequate returns, others are more risky …


What is Spot Rate?

What's the spot rate ? For immediate settlement of trades in currencies, securities or commodities, there is an agreed price. This price is known as the spot rate, or the spot price of the commodity. The spot rate is defined …


What is Spot Market?

Stock exchanges can be described as physical markets where goods such as fruits, vegetables, and cosmetics are sold. Only the difference is that Indian physical goods are usually sold at a fixed maximum retail price. While the pricing system for …


What is Spot Price?

It is important to be familiar with the terms used in stock trading before you start trading. The term 'Spot Price' is a common term used to trade. This article will answer the following questions: What is the spot market …


What are Preferred Dividends?

What is Preferred Dividends ? A preferred dividend, also known as preferred stock dividends, is a dividend that is accrued and paid on preferred shares of a company. If a company cannot pay all its dividends, investor claims for preferred …


What is Spot Trade?

What's Spot Trade ? Spot trades, also known as spot transactions, are when a trader purchases a financial instrument, commodity or foreign currency at a specified time. A spot contract typically includes physical delivery of the currency. Spot transactions take …


What is Electronic Communication Network?

What's an electronic communication network ? ECN, or electronic communication network, is a computerized system that connects buyers and sellers by automatically placing orders for identical securities on publicly traded markets. Individual traders can trade directly between themselves and major …


Meaning of Paper Trading

It's not difficult to learn the basics of trading if you are new to the market. It might be difficult for a beginner to navigate this fast-paced environment. It is essential that you learn the basics before you invest your …


What Does It Mean By Third Market?

Investors might know about two types of capital markets: primary and secondary. The primary market is made up of the IPO and stock exchange markets. Did you know there were two other types of capital markets available? Investors and traders …


Current Ratio vs Quick Ratio

Investors can use fundamental analysis to assess the financial performance of a company prior to investing. To determine the company's overall fundamental strength, it uses a variety of formulas, ratios, calculations, and other methods. When it comes to fundamental analysis, …


What is Whipsaw?

Even those with basic knowledge of stock markets know that they can be volatile. Analysts and researchers have developed various strategies and tools to deal with volatility in the stock market. Advanced analytical and charting tools can help predict the …


What are Non-Cumulative Preference Shares?

Two types of shares are allowed by companies: preference shares and equity shares. Preference shares are a more common and straightforward way for companies to raise funds for their business. preference share are not like equity and don't give up …


What are Cumulative Preference Shares?

A company can issue equity shares to the general public. However, it is also allowed to issue another type of share to raise capital. These shares are called preference shares by finance experts. They don't have any ownership rights and …


What are Thinly Traded Securities?

These shares cannot be sold or exchanged for cash easily without significant price changes. Thinly traded securities are less common and more limited in volume. These securities can experience volatile price changes when a transaction takes place. These securities are …


Meaning of Contrarian Investing?

When they enter the market, there are many investment strategies that people use. Many of these strategies, from value investing to angel investing, are well-known by billionaires. Contrarian investing is one example. What's contrarian investing ? Contrarian investing is a …


Meaning of Price Discovery

Understanding price discovery is an important part of stock market trading. The art of price discovery is about finding the confluence of demand and supply. This involves attaching the price to a commodity, asset, or security. A price discovery process …


All about Cross Trade

Cross trading is when a trade in which the asset is purchased and sold is offset by the exchange without it being recorded. Most exchange platforms do not permit cross trading. Cross trading is legal if a broker matches buy …


What is Speculation?

There are two main ways to participate in the stock market. Either you can invest in stocks or do speculative trades. These two concepts have very different logics. Speculative trading, also known as speculation, is the more popular of these …


What is Stock Ticker?

One of the elementary aspects of stock market investing is to know what the ticker is all about. The ticker symbol is the arrangement of characters you see against a particular security. The symbol is assigned to a company that …


What is Locational Arbitrage?

There are many pricing differences and mispricings when trading currencies. These can be exploited to make profits. These minor price differences usually occur in the exchange rates between currencies. To capture these mispricings, most forex traders and investors use arbitrage …