FENCE
A risk-mitigating investment strategy that utilizes options to limit the possible range of returns. To employ a fence, the investor purchases a security (a long position), a long put with a strike price near the spot price of the security, a short put with a strike price lower than the spot price of the security and a short call with a strike price higher than the spot price of the security. The options are typically set to expire at the same time. The option premiums should balance each other, having a net derivative investment of zero while the underlying security is bought.
POPULAR TERMS
Specific-Shares Method
Specific-shares method is a personal financial accounting whose purpose is to cut down realized capital gains for multiple stock or mutual fund pur ...
Voting Trust Certificate
Voting Trust Certificate is a document issued by the limited-life trust of a corporation, which is created to limit the control of a corporation to ...
Sample Selection Bias
Sample Selection Bias is a type of bias resulting from the selection of non-random data meant for statistical analysis.
Combined Loan to Value Ratio - CLTV Ratio
Ratio determining the default risk of a potential homebuyer if he would purchase a home using multiple mortgages. In general, creditors are willing ...
Contagion
Possibility a significant economic changes in a country will spread to other nations. It pertains to the spread of either an economic boom or econo ...
POPULAR ARTICLE
SEE FOREX TUTORIAL
Do I Need to Move Out or Renovate My House?
Before deciding whether to move our or remodel your home, you need to consider some other factors.
Emotional Attachments. You&rs ...
Buying a Home: Choosing the Best Location
The first consideration when buying a new house is choosing the place where you want to live, regardless if this will serve as an investment or upg ...
Student Loans: Consolidating Private Loans
Fixed interest rates.
That is one viable reason for consolidating private loans although you are not mulling over that option. Private lo ...
An Introduction to Stocks
Imagine this: you are a company owner, you get income but you don’t go to work, you just do what you want and the money keeps coming in. This ...
A Guide to Income Tax: Overlooked Credits and Cuts
The US tax code changes from time to time, and majority of taxpayers cannot name at least three of the most common deductible expenditures. On that ...
ECONOMIC CALENDAR
| Time | Country | Indices | Period |
|---|---|---|---|
| 02:01 | Rightmove House Prices | Mar | |
| 04:00 | Fixed Asset Investment | Feb | |
| 04:00 | Industrial production | Feb | |
| 04:00 | Retail Sales | Feb | |
| 04:00 | Unemployment Rate | Feb | |
| 04:00 | NBS Press Conference | ||
| 14:15 | Housing Starts | Feb | |
| 14:30 | Consumer Price Index | Feb | |
| 14:30 | Consumer Price Index Core | Feb |
