Author: Angelo Vizcaino
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Put Options Explained: A Beginner’s Guide to Understanding and Trading These Derivatives
A put option is a financial contract that gives the holder the right, but not the obligation, to sell a specified asset at a predetermined price, known as the strike price, on or before a specified date, known as the expiration date. Put options are a type of derivative, which means that their value is…
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Call Options Explained: A Beginner’s Guide to Understanding and Trading These Derivatives
A call option is a financial contract that gives the holder the right, but not the obligation, to buy a specified asset at a predetermined price, known as the strike price, on or before a specified date, known as the expiration date. Call options are a type of derivative, which means that their value is…
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The Importance of Portfolio Diversification: Understanding the Benefits and Best Practices
Portfolio diversification is the process of spreading your investments across a variety of asset classes in order to reduce risk and increase the chances of achieving your financial goals. By diversifying your portfolio, you can reduce the impact of market volatility on your investments and potentially improve your overall returns. There are several different ways…
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The Role of Central Banks in the Global Economy: A Comprehensive Guide
A central bank is a financial institution that is responsible for managing a country’s monetary policy and providing financial services to the government. Central banks play a key role in the economy, as they are responsible for maintaining price stability, ensuring the smooth operation of the financial system, and providing financial services to the government.…
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Understanding Recessions: What They Are and How to Prepare for Them
A recession is a period of economic downturn that is characterized by a decline in GDP (gross domestic product) and a rise in unemployment. A recession is typically defined as two consecutive quarters of negative economic growth, although some economists use other measures, such as a significant decline in industrial production or employment. Recessions can…
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What are ETFs and How Do They Work? A Comprehensive Guide for Investors
Exchange-traded funds, or ETFs, are investment vehicles that track the performance of a particular index or asset class. They are traded on stock exchanges, just like stocks, and can be bought and sold throughout the day. ETFs offer investors a way to diversify their portfolio and gain exposure to a wide range of assets, such…
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The Ultimate Guide to Forex Trading: What You Need to Know to Get Started
Forex trading, also known as foreign exchange trading or currency trading, is the buying and selling of currencies on the forex market with the goal of making a profit. The forex market is the largest and most liquid market in the world, with a daily trading volume of over $6 trillion. In forex trading, traders…
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The Ultimate Guide to Understanding and Calculating Return on Investment (ROI)
ROI, or Return on Investment, is a financial metric used to measure the profitability of an investment or project. It is calculated by dividing the net benefit or gain of the investment by the cost of the investment, and expressing the result as a percentage or ratio. For example, if you invest $100 in a…
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What is Options Trading and How Does it Work?
Options trading is a financial instrument that allows investors to buy or sell the right, but not the obligation, to buy or sell an underlying asset at a predetermined price and time. This type of trading offers investors the opportunity to hedge their positions, generate income, and speculate on the direction of the markets. In…
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