In order for us to have a clear idea of our compound growth rate, we must first understand the Time-Weighted Rate Of Return (TWR). Remember, compound growth is simply paying yourself a percentage of your earnings and then reinvesting those earnings to generate a larger return. In this article, we …

Everyone is familiar with the term ‘costs’. In business, there are all sorts of costs – from the cost of goods sold and the cost of marketing and sales to the cost of employee benefits and the cost of occupancy. But what about transaction costs? Transaction costs are a unique …

What is Market Cycle It is not a secret that every financial market including the stock market faces a lot of ups and downs. It can be seen in past years that these ups and downs are coming with frequent regularity, roughly about every 2-3 years. A lot of people …

Almost every security trader will rather go for a trading strategy that minimizes risks and increases chances of achieving success. And, the time-weighted average price (TWAP) is one such trade execution strategy. TWAP reduces the impact of large orders on the security market, making it a perfect choice for high-volume …

No matter your trading strategy, there are some parameters you must get right to become a profitable trader. Beyond correct analyses and prediction, a good trader must also master good timing, accuracy, and precision. This will help to get trades on time and maximize market movements. However, it usually takes …

When it comes to bonds, mortgages, and other interest-rate-sensitive instruments, most people refer to the change in interest rates as basis points or bps for short. For example, you might hear someone say that a bond yield increased by 12 bps. The actual meaning is that the new yield is …

Brokers and dealers are two key figures in the security market. However, both have their distinct functions and relevance to the security market. Practically, there is no security market without a broker. A broker provides a technical base for transactions. On the flip side, a dealer trades securities for his(her) …

One general goal for investing is to own assets that will appreciate over time. As an investor, note that there are different types of markets to consider when you want to execute a trade. The auction market is primarily concerned with executing trades among buyers and sellers. Having a lot …

What is the Bid-Ask Spread? Bid-ask spreads are most commonly found in the market for stocks, futures, and options. A bid-ask spread is a difference between the price that a buyer is willing to pay for an asset and the price at which a seller is willing to sell the …

What is a market order When an investor wants to buy or sell a security, he can use several types of orders to execute the trade. One of the most frequently used order types is the market order. Market order ensures that your trade is executed. In this article, we’ll …