What Are Bonds? The Short Explanation: Bonds are units of debt issued by corporations or governments, which allows the issuer to raise capital by taking a loan from the investors. Bonds are considered fixed-income securities as typically a bond pays back a fixed interest rate (coupon) to the debt holders. [...]
What Are Securities? The Short Explanation: The definition of securities tend to have a different meaning all around the world. In the US typically all financial assets that can be traded can be considered as securities. The FCA defines securities differently in the UK. Most common types of securities are [...]
What is Technical Analysis? The Short Explanation: Technical Analysis is a methodology used to identify buying opportunities or evaluate investments. It works based on the assumption that the historical trading activity or volume and price changes can be a good indication of any future price movements of a stock or [...]
What is Fundamental Analysis? The Short Version: Fundamental Analysis is a method of measuring a security's intrinsic or fair value by examining related economical and financial factors. Everything that can affect the value of the security can be analysed in Fundamental Analysis. This may include everything from the macroeconomic factors [...]
What is a Blockchain? The Short Explanation: Blockchain is type of a decentralised database that is shared throughout a network of nodes or computers. Once data, or a new block, has been added to the chain, it can never be altered - this means the blockchain is immutable. In the [...]
What is a Cryptocurrency? The Short Explanation: A cryptocurrency, or crypto, is a digital currency (e.g. does not exist in paper form like normal currencies do) that is secured by cryptography. Many cryptocurrencies like Bitcoin are based on blockchain technology. This means the transactions are stored on a decentralised ledger. [...]
What Are Calls? The Short Explanation: Call Options are a type of a derivative financial contract which gives the option for the holder of the contract to buy an asset within a specified time frame for a predetermined price. What Are Puts? The Short Explanation: Put Options are a type [...]
What Are Futures? The Short Explanation: Futures are a type of a derivative financial contract which obligates the parties to transact an asset or commodity at a predetermined future date and price. Therefore, futures contracts have a known expiration date and price. The buyer must purchase or the seller must [...]
What Are Derivatives? The Short Explanation: A derivative is a contract between two or more parties whose value is based on an agreed-upon underlying financial asset(s). These include stocks, indexes, bonds, currencies, interest rates and other commodities. There are different types of derivatives. Most commonly used are futures, forwards, options, [...]
What Are Options? The Short Explanation: Options are a type of a derivative financial contract which gives the option for the holder of the contract to either sell or buy an asset within a specified time frame for a predetermined price. An option that gives the holder of the contract [...]
