Debt Securities

Debt Securities Definition and Example – Should You Invest?

What Are Debt Securities? Debt securities are debt instruments that can be bought or sold between two parties.  Basic terms are defined, such as the amount borrowed, interest rate, maturity date, and renewal date.  Debt securities are issued by corporations, governments, governmental agencies, or other organizations. Each one is essentially […]

Market Risk

Market Risk Definition, Explanation and Examples

What Is Market Risk? Market risk or systematic risk refers to the uncertainty associated with any investment decision due to the factors that affect an entire market. Market risk is the possibility of investment losses due to factors that affect the overall performance of the entire financial markets. It is […]

Long Put Option

Long Put Option Trading Strategy Explained with Examples

What Is a Long Put? A long put option refers to an options trading strategy.  Typically, the trader anticipates a decline in the underlying asset. A trader could buy a put for speculative reasons.  He is betting that the underlying asset will fall which increases the value of the long […]

Credit Spread

Credit Spread Definition – Explanation of How a Credit Spread Works

What is a Credit Spread? A credit spread is a difference in yield between two bonds with the same maturity.  Typically, a U.S. Treasury bond and another debt security of the same maturity but different credit quality. Credit spreads between U.S. Treasuries and other bond issuances are measured in basis […]

Short Call

Short Call Option Definition – What is a Short Call?

What Is a Short Call? A short call is an options trading strategy where the trader is betting that the price of the asset on which they are placing the option is going to drop.  Short call strategy involves a call option.  This obligates the call seller to sell a […]

Odd Lot

Odd Lot Definition – What is Round Lot Trading Vs Odd Lots?

What Is an Odd Lot? An odd lot is an order amount for a security that is less than the normal unit of trading for that particular asset – typically 100 shares. Therefore, they are considered to be anything less than the standard 100 shares for stocks. Trading commissions are […]