Option is a right to buy or sell a financial asset like stock at a specific price. For example when you buy stock option to buy stock ABC at $50, you can buy the stock at $50 even though it is $60. That means you can get $10 profit from that option. You can buy […]
Case study of Baring Bank and Nick Leeson
Nick Leeson and the Barings debacle are memorized as the biggest financial scandal in the 20th century. At the age of 28, Nick Leeson brought down 233-year-old Barings — Britain’s oldest merchant bank crashed, by losing £827 million (US$1.4 billion) in the derivative market trading. After a failed bailout attempt, Barings was declared insolvent on […]
How to Buy Futures
A futures contract is an agreement between two parties – a buyer and a seller – wherein the former agrees to purchase from the latter, a fixed number of shares or an index at a specific time in the future for a pre-determined price. These details are agreed upon when the transaction takes place. As […]
Diversification: A Way to Reduce Risk in Investing
The simplest way to boost your investment returns while reducing risk is diversification. You may think that it is an impossible investing goal, but it’s actually a simple yet important, especially if you are new and aim for becoming passive investors. Diversification means owning a range of assets across a variety of industries, company sizes […]
Stock Options for Dummies
In a simple term, an Option is a contract which you can buy from someone or sell to someone. It is in your decision or responsibilities depend on whether you are the one buying or selling. Now before getting into details, it is worthwhile to understand some important characteristics of an option contract and then […]
How To Become a Chartered Financial Analyst (CFA)
In order to become a Chartered Financial Analyst (CFA), you need to have the right skill set and knowledge. There are many programs and one of them that is well known and recognize is the Chartered Financial Analyst (CFA) Program. It is a professional credential offered internationally by the American-based CFA Institute (previously the Association […]
Make Money by Trading Index Options
Stock index options are options whose underlying is not a single stock but an index comprising many stocks. It increasingly gains popularity since it is been introduced in 1981. Investors and speculators trade index options to gain exposure to the entire market or specific segments of the market with a single trading decision and often […]
Make Money with Binary Option: Is It Possible?
Binary option trading is gaining popularity in many countries around the world. However, many people still asked whether the binary option can really making money. The answer for that is yes, binary options trading can make money online, with the condition that you registering the trade under the legitimate broker, learn the basics and implement […]
What are Options?
In the finance, an option is a contract that gives the buyer the right, but not the obligation, to buy or sell an underlying asset at a specific price on or before a certain date. In more specific definition of it is formal contract between a seller and a buyer to give the right (but […]
Make Money from Flipping Cars: Buying Cars in Lower Price
If you love cars, you may want to consider the flipping car as a serious business in making it as a profitable hobby of your own. Why not? Let’s start with the car flipping itself, basically, you buy cars for a very lower price then the value is added by investing some to sprucing up […]
