EDU Articles
Learn about investing, trading, retirement, banking, personal finance and more.
What is the Ladder Strategy for Structuring My Bond Portfolio?
The ladder provides the bondholder with a degree of freedom and some liquidity to take part in possibly improved interest rates in the future.
The ladder strategy distributes your funds uniformly among bonds with various durations. For example, if you have $10,000, you buy one bond with a duration of one year, one bond with a duration of two years, etc.
If the interest rates go up when the shorter-duration bonds expire, you will be able to reinvest this money with a higher coupon rate (of course, keep in mind that your longer-duration bonds would have fallen in price).
Can You Sell a Bond for Less Than the Price You Paid for It?
What is a Bond Ladder?
How Do I Structure My Bond Portfolio?
What is a Stop Order?
A stop order names a price which serves as a trigger point, and when the price is crossed, a market order is entered
Should I Listen to Commentators on Financial News Programs?
First and foremost, everything they say and do is designed to keep the show’s ratings up. It’s wise to remember that
What do I need to know about investing in commodities?
Investing in commodities is a little different than stock market investing. You can get exposure by investing in ETFs
What is a Margin Call?
A margin call is a mandatory request by the custodian/broker for the account holder to add equity to the account
What is a bear straddle?
A Bear Straddle is another name for a short straddle, in which the investor writes (goes short) on both a call and a put
What is Federal Reserve Credit?
The Federal Reserve extends credit in the form of short-term loans to member banks. Banks avoid taking loans from the Fed
What is a market-on-close order?
A market-on-close order is used to execute a trade at the last possible moment before the market closes for the day
What is a currency forward?
Forward contracts allow an investor to lock in a price by agreeing to exchange a set amount of one currency for another
What is a Life Estate?
A life estate is often created by an older parent when they sign over the house to their adult children
What is the Three Rising Valleys (Bullish) Pattern?
The Three Rising Valleys pattern forms when three minor Lows arranged along an upward sloping trend line