Investing Terms

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  • System Trading

    The current electronic marketplace is a dynamic, complex arena where infinite possibilities exist at any given time. It is commonplace for individuals new to the financial markets, and to trading in general, to become overwhelmed with both the speed and magnitude of market fluctuations. In an attempt to manage the volatility that is present during the trading of financial instruments, individuals are often inclined to develop a systematic approach of…

  • The History Of Alternative Currencies

    Many items have been used for trade throughout history, including bartered goods and materials. However, currencies can be defined as a medium of exchange with extrinsic, or implied, value that is not necessarily determined by the physical characteristics or utility of the medium itself. While official currencies are those issued by central authorities such as governments, alternative currencies (sometimes called private or parallel currencies) are those normally issued beyond the…

  • Currency Carry Trades

    What Are Currency Carry Trades? A currency carry trade is a method some investors use in an effort to meet their financial objectives. The basic idea behind this strategy is selling a currency with a low interest rate and then using the resulting funds to buy a currency with a higher interest rate. By harnessing this approach, an investor can try to capture the difference in interest rates, or interest-rate…

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