What Is Interest Rate Parity (IRP)? Interest rate parity (IRP) is the fundamental equation that governs the relationship between interest rates and currency exchange rates. Interest rate parity (IRP) plays an essential role in foreign exchange markets. It connects interest rates with spot exchange rates and foreign exchange rates. According […]
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What is a Natural Gas ETF? Natural gas is a commodity used as a source of energy for heating, cooking, fuel, and electricity generation. It also is used in the manufacture of plastics and other organic chemicals. The price of natural gas rises and falls according to fluctuations in supply […]
What Is a Calendar Spread? A calendar spread is an options or futures trading strategy. It is established by simultaneously entering a long and short position on the same underlying asset but with different delivery dates. In a typical calendar spread, a trader buys a longer-term contract and goes short on […]
What are Marketable Securities Marketable securities are liquid financial instruments. They can be quickly converted into cash at a reasonable price. The liquidity of marketable securities comes from the fact that the maturities tend to be less than one year. Also, the rates at which they can be bought or sold […]
Selling Puts – Selling Put Options for Income to Benefit in Any Market Selling puts is also called writing a put option. It allows an investor to potentially own the underlying security at a future date and a potentially more favorable price. In other words, selling put options allows market […]
What is Theta in Options Trading – What Is Theta? Theta in Options Trading: The term theta for options trading refers to the rate of decline in the value of an option due to the passage of time. It can also be referred to as the time decay of an option. […]