Currency carry trade
The carry of an asset is the return obtained from holding it. It could be an earning or a cost. Cost of Carrying Inventory The Cost of Carrying Inventory is expressed as a percentage...
Covered call
Definition Covered call writing is either the simultaneous purchase of stock and the sale of a call option or the sale of a call option against a stock currently held by an investor. Generally,...
Group Term Life Insurance
Definition: It’s that type of insurance where the coverage is offered to a group of people. This coverage offers benefit to the insured group even if one of the beneficiaries dies during the specified...
Credit Card Balance
Definition: A credit card balance is the amount of charges, or lack of that, payable to the credit card company. Typically, it may take about 24 hours for the credit card company to update...
Credit Balance
Definition: While maintaining a margin account, the amount of funds which are deposited in the customer’s account after a successful execution of a short sale order is called as credit balance. The credit balance...
Real Estate Investment Trust
A real estate investment trust or REIT is a financial product that is traded like a stock on the major stock exchanges and invests in real estate market directly, either through equities or mortgages....
Call Option
A call option also referred to as simply call is a financial transaction between two parties, a buyer and seller for this type of option trading. In this contract, the buyer has a right...
Cash settlement
Cash settlement is a device used instead of physical deliveries to fulfill futures contract obligations upon contract maturity. In 1981, cash settlement was first applied to trading futures contracts in Eurodollar time deposits and...
Currency futures
With $4.0 trillion traded daily, currency future (FX future or foreign exchange future) markets represent the largest asset class in the world. Forex futures are used for currency price trend speculation as well as...
Auto Insurance/Vehicle Insurance
Vehicle insurance is known by various other names such as GAP insurance, auto insurance and motor insurance. Vehicle insurance is the insurance purchase for vehicles like motorcycles, cars, trucks and other such vehicles. This...
Certificate of Deposit
A certificate of deposit is a term deposit, which can be defined as financial product widely accessible to consumers in the United States offered by banks, thrift institutions and credit unions. Just like savings...
Credit Card Interest
Credit card interest is one of the most important means through which credit card issuers generate revenue. A card or an account number is issued by a bank or credit union which enables a consumer (the cardholder) to use it with various...
Prime Rate
Prime rate or prime lending rate is a term which is used in many countries for referring interest rate charged by banks to each other. The term earlier signified the rate of interest at which banks lent to...
Home Equity Line of Credit
A home equity line of credit also refereed as HELOC and pronounced HELL-ock is a loan in which the lender is ready to provide a maximum amount of loan within a fixed period (called a term), where the collateral is the...
Home Equity
Home equity represents the market value of a homeowner’s unencumbered interest in their real property—to be precise; it is the difference between the home’s fair market value and the outstanding balance of all liens on the property. The property’s equity will rise as the debtor make...