The Money exchange

Category: glossary , Asked by: Chaim A. From Tacoma, United States

A: A mathematical representation of the typical value of a series of numbers, computed as the sum of all the numbers in the series divided by the count of all numbers in the series. Arithmetic mean is commonly referred to as "average" or simply as "mean". Suppose you wanted to know what the arithmetic mean of a stock's closing price was over the past week. If during the five-day week the stock closed at $14.50, $14.80, $15.20, $15.50, and then $14.00, its arithmetic mean closing price would be equal to the sum of the five numbers ($74.00) divided by five, or $14.80.

Category: glossary , Asked by: Annalise G. From Austin, United States

A: a "reverse conversion " is A finance and risk management technique based on a put-call parity strategy that consists of selling a put and buying call (a synthetic long position), while shorting the underlying stock. As long as the put and call have the same underlying, strike price and expiration date, a synthetic long position will have the same risk/return profile as ownership of an equivalent amount of the underlying stock. In a typical reverse-conversion transaction, a brokerage firm short sells stock and hedges this position by buying its call and selling its put. Whether the brokerage firm makes money depends on the borrowing cost of the shorted stock and the put and call premiums, all of which may render a return better than the money market with very low risk. In the context of futures markets, a trader would be synthetically long and short the underlying futures while looking for arbitrage opportunities.

Category: general , Asked by: Q. T. From United States

A: We think "FX Universal" is exactly the place for that. The support team they got is awesome, it takes a real short time to get through to them, and they're definitely excellent.

Category: platform , Asked by: Nicolette U. From United Kingdom

A: "Finexo Ltd." is totally the forex site for you if you look for an exceptional fx online trading site which enables refined trading tips and instructions manuals. This place suggests nice guides for first time users, with simple options and instructions. You can certainly get supreme ideas from some of them.

Category: glossary , Asked by: Alexander F. From Canada

A: A loan offered by a group of lenders (called a syndicate) who work together to provide funds for a single borrower. The borrower could be a corporation, a large project, or a sovereignty (such as a government). The loan may involve fixed amounts, a credit line, or a combination of the two. Interest rates can be fixed for the term of the loan or floating based on a benchmark rate such as the London Interbank Offered Rate (LIBOR). Typically there is a lead bank or underwriter of the loan, known as the "arranger", "agent", or "lead lender". This lender may be putting up a proportionally bigger share of the loan, or perform duties like dispersing cash flows amongst the other syndicate members and administrative tasks. Also known as a "syndicated bank facility". The main goal of syndicated lending is to spread the risk of a borrower default across multiple lenders (such as banks) or institutional investors like pensions funds and hedge funds. Because syndicated loans tend to be much larger than standard bank loans, the risk of even one borrower defaulting could cripple a single lender. Syndicated loans are also used in the leveraged buyout community to fund large corporate takeovers with primarily debt funding. Syndicated loans can be made on a "best efforts" basis, which means that if enough investors can't be found, the amount the borrower receives will be lower than originally anticipated. These loans can also be split into dual tranches for banks (who fund standard revolvers or lines of credit) and institutional investors (who fund fixed-rate term loans).

Category: glossary , Asked by: Titus L. From United States

A: An option position where the buyer or seller has no underlying security position. Naked options are very risky. Profits are huge if the underlying asset moves in the direction desired by the investor. On the other hand, a writer of a naked option can lose big if the underlying asset moves in the opposite direction.

Category: glossary , Asked by: C. Sims from ´s-Hertogenbosch, Netherlands

A: "retention tax " is A mandatory tax placed on income that is earned on investments in a country that is not the resident's home country. This only applies to countries that are members of the European Union (EU). The retention tax was set up by the EU in 2005 to prevent individual investors from avoiding taxes on their income by investing their money in other countries. The rates are scaling, and will rise to a level of 35% by 2011.

Category: glossary , Asked by: Z. A. From Cork, Ireland

A: The maximum number of shares that a corporation is legally permitted to issue, as specified in its articles of incorporation. This figure is usually listed in the capital accounts section of the balance sheet. Also known as "authorized shares" or "authorized capital stock". This number can be changed only by a vote of all the shareholders. Management will typically keep the number of authorized shares higher than those actually issued. This allows the company to sell more shares if it needs to raise additional funds.

Category: money , Asked by: H. Peters from Luxembourg, Luxembourg

A: Definitely "FX Universal". The leverage in this one is only 100:01:00, the start amount to deposit is only $250, the platform graphics are completely sophisticated, the service is delightful, plus no commissions are mandatory in this place.

Category: general , Asked by: G. S. From Ireland

A: We think the best place for your purpose is "Dukascopy". The customer service line they've got is terrific. It takes but a few seconds to reach them, and they're quite perfect.