Introduction to Derivatives
Definition and purpose of derivatives Derivatives are financial contracts whose value is linked to the performance of an underlying asset, group of assets, or benchmark. Common underlying instruments include stocks, bonds, commodities, currencies, interest rates, and market indexes.Derivatives may be traded over-the-counter(OTC) that means investor purchase through a broker. Derivatives traded through exchange are regulated […]
Trading Strategies for Beginners
A trading strategy outlines the trader’s goals, such as long-term and short-term financial objectives, risk tolerance, time horizons, and tax implications. After researching the current market and its trends, we can devise a trading strategy that includes a fixed plan for buying and selling to generate profits on the investment. Here are 4 main active […]
Chart Patterns for Beginners
Patterns are created through the price movements on a chart and identified through technical analysis. There are thousands of chart patterns but they all fall under two broad categories: reversal patterns and continuation patterns. Reversal Patterns A pattern that signals the change in the existing market trend is called Reversal pattern. The existing trend […]
