Search results
Results from the WOW.Com Content Network
Convergence trade is a trading strategy consisting of two positions: buying one asset forward—i.e., for delivery in future (going long the asset)—and selling a similar asset forward (going short the asset) for a higher price, in the expectation that by the time the assets must be delivered, the prices will have become closer to equal (will have converged), and thus one profits by the ...
This happens because new bonds are issued with higher interest payments, making them more attractive than existing bonds with lower payouts. The opposite tends to happen when interest rates decline.
Buying bond mutual funds and ETFs: You don’t need to make decisions about specific bonds to purchase when you buy a bond mutual fund or exchange-traded fund (ETF). Instead, the fund or ETF ...
Visit a bank for paper bonds: If you have paper I Bonds, take them to your bank. You may need to provide identification, and the bank will handle the redemption and deposit the funds into your ...
A long box-spread can be viewed as a long strangle at one pair of strike prices, and , plus a short strangle at the same pair of strike prices. The long strangle contains the two long (buy) options. The short strangle contains the two short (sell) options. A short box-spread can be treated similarly.
In finance, a trade is an exchange of a security such as stocks, bonds, commodities, currencies, derivatives or any valuable financial instrument for "cash". Such a financial transaction is usually done by participants of an exchange such as a stock exchange, commodity exchange or futures exchange with a short-dated promise to pay in the currency of the country where the 'exchange' is located.
For premium support please call: 800-290-4726 more ways to reach us
enter into one short forward contract costing 0. A short forward contract means that the investor owes the counterparty the asset at time . The initial cost of the trades at the initial time sum to zero. At time the investor can reverse the trades that were executed at time . Specifically, and mirroring the trades 1., 2. and 3. the investor