Author: John

Formula for GDP Growth Rate

What is Gross Domestic Product (GDP)? Gross Domestic Product (GDP) is a monetary value used to track a county’s economic health. It represents the total market value of all the finished goods and services produced within a country over a specific time. There are several factors that can contribute to …

Stop-Loss Vs Stop-Limit Orders

The use of different types of orders to mitigate risks is prevalent among investors. Through these, investors can manage or limit the potential losses they make in the market. Investors can use one of two tools to do so. These include stop-loss and stop-limit orders. However, these are both different …

What is Risk Budgeting

The term portfolio refers to a collection of investments. These investments may include items from several asset classes, such as stocks, bonds, real estate, mutual funds, commodities, etc. Usually, investors aim to develop a portfolio that focuses on maximizing their returns. However, investors also have to face some risks with …

Value at Risk Formula

What is Value at Risk? Value at Risk (VaR) refers to a financial metric used in finance that investors use to estimate the risk of their investments. It involves measuring and quantifying the level of financial risk within investors’ portfolios for a specific period. However, it doesn’t only apply to …

Market Timing vs Buy and Hold

Investors with varying risk tolerances will select different investing strategies. Some of these strategies promise higher returns. However, these also come with higher risks. On the other hand, some strategies may come with low risks and rewards. Similarly, investors may also choose strategies based on the time it takes for …

What is Market Timing?

Every investor in the market has an investing strategy that helps them maximize their returns. These strategies are usually flexible and differ according to the investor’s risk tolerance, financial situation, budget, etc. Investors can either use a single strategy or a combination of various strategies to achieve their goals. One …

What is Commodity Price Index

What are commodities? Commodities represent basic goods available in the market. These goods are interchangeable with other goods of the same type. Similarly, investors can also buy and sell them on dedicated markets. Some examples of commodities include precious metals, food items, oil, natural gases, etc. Usually, these goods come …

What is a Commodity Swap?

Financial derivatives are instruments that derive their value from an underlying asset or group of assets. These derivatives are a crucial part of the market. Most investors use financial derivatives to mitigate any risk they face with their investments. There are many types of these derivatives that investors can use …

What is Commodity Hedging?

For most investors, having a diversified investment portfolio is crucial in mitigating risks associated with a single asset class. Therefore, investors may choose to invest in different assets, such as stocks, debt instruments, real estate, etc. One of these investments includes commodities, such as precious metals, grains, food items, etc. …

What is a Commodity Futures Contract?

The term commodity refers to basic, interchangeable goods used in commerce. These may include items such as precious metals, natural gases, food items, etc. Commodities play a significant role in any given economy. They are also essential in the production of goods and services in a county. Commodities are often …