invest
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Synthetic Positions in Trading: Definition & How They Work
A synthetic position is a trading option used to simulate the features of another comparable position. More specifically, a synthetic position is created to simulate a similar reward or risk profile a
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Understanding Synthetic Options: A Comprehensive Guide
Synthetic options are portfolios or tradingTrading & InvestingCFIs trading & investing guides are designed as self-study resources to learn to trade at your own pace. Browse hundreds of articl
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Synthetic Long Assets: Strategy, Risks & Rewards
Sometimes referred to as a synthetic long stock, a synthetic long asset is a strategy for options trading that is designed to mimic a long stock position. Traders create a synthetic long asset by purc
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Synthetic Cash: Understanding Simulated Financial Instruments
Synthetic cash is a financial instrument that is created to function like other financial instruments, but certain characteristics of the simulated financial instrument are altered. The simulated inst
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Swing Trading Explained: A Beginner's Guide to Profiting from Trends
Swing trading is a trading technique that traders use to buy and sell stocks when indicators point to an upward (positive) or downward (negative) trend in the future, which can range from overnight to
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Swaptions Explained: Understanding Interest Rate Option Contracts
A swaption (also known as a swap option) is an option contractEmbedded OptionAn embedded option is a provision in a financial security (typically in bonds) that provides an issuer or holder of the sec
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Sustainable Investing: A Guide to ESG Strategies
Sustainable investing is the practice of making capital allocation decisions based on socially responsible and ethical strategies to ensure that portfolio companies maintain a high standard of sustain
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Sukuk: Understanding Islamic Bonds and Their Function
Sukuk (Islamic bond or “Sharia-compliant” bond) is an Islamic financial certificate that represents a portion of ownership in a portfolio of eligible existing or future assetsTypes of Asse
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Structured Notes: Understanding Hybrid Investments & Potential Returns
A structured note is a hybrid security that combines multiple payoffs from multiple securities, usually a bond and a derivative. The bond component makes up approximately 80% of the investment and pro
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Structured Investment Vehicles (SIVs): Definition & How They Work
A structured investment vehicle (SIV) is a non-bank financial entity set up to purchase investments designed to profit from the difference in interest rates – known as the credit spread &nd
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Understanding Strike Price: Options Trading Explained
The strike price is the price at which the holder of the option can exercise the option to buy or sell an underlying security, depending on whether they hold a call optionCall OptionA call option, com
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Strategic Asset Allocation (SAA): A Comprehensive Guide
Strategic asset allocation refers to a long-term portfolio strategy that involves choosing asset class allocations and rebalancing the allocations periodically. Rebalancing occurs when the asset alloc
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Understanding Strangle Options: A Comprehensive Guide
Strangle is an investment methodInvestment MethodsThis guide and overview of investment methods outlines they main ways investors try to make money and manage risk in capital markets. An investment is
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Straddle Strategy: Definition, How It Works & Risk
A straddle strategy is a strategy that involves simultaneously taking a long position and a short position on a security. Consider the following example: A trader buys and sells a call optionCall Opti
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Stop-Loss Orders: Protecting Your Investments & Managing Risk
A stop-loss order is a tool used by traders and investors to limit losses and reduce risk exposureMarket Risk PremiumThe market risk premium is the additional return an investor expects from holding a
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Stop-Limit Orders: A Comprehensive Guide for Risk Management
A stop-limit order is a tool that traders use to mitigate trade risks by specifying the highest or lowest price of stocks they are willing to accept. The trader starts by setting a stop price (order t
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Stop Orders: A Comprehensive Guide for Investors
A stop order is a contingent order that an investor utilizes to either enter or exit a market position. A stop order is activated, or triggered, into effect when a traded security – such as a pa
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Stocks, Bonds & Mutual Funds: A Beginner's Guide to Investment
Stocks, bonds, and mutual funds are well known and powerful components of a diversified portfolio. To achieve desired returns to accomplish goals, it is extremely important to make sure there are diff
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Stockbroker: Your Guide to Finding & Working with Financial Professionals
A stockbroker is a regulated representative of the financial market who enables the buying and selling of securities on behalf of financial institutions, investor clients, and firms. A stockbroker is
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Stock Valuation: A Comprehensive Guide for Investors
Every investor who wants to beat the market must master the skill of stock valuation. Essentially, stock valuation is a method of determining the intrinsic valueIntrinsic ValueThe intrinsic value of a
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MSCI ACWI Index: Understanding Global Equity PerformanceThe MSCI All Country World Index (ACWI) is a global equity index that measures the equity performance in both the developed and emerging marketsEmerging MarketsEmerging markets is a term that refers t...
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Why Millennials' Cash Preference Could Hinder Retirement WealthMillennials profess a love for cash that shows their economic skittishness, while demonstrating a risk intolerance that could cost them big-time when they stop working.A decade removed from the most ...
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EBIT Calculation: A Simple Guide for InvestorsHow to Calculate EBIT Investors want to know how much profit a company makes – the bottom line, so to speak. Calculating earnings before interest and taxes allows you to dig a bit deeper. EBI...
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Master Your Money: Lessons from Fantasy Football for Financial Successdiv.cust...