by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is the Commodity Exchange Act?The Commodity Exchange Act (CEA) is federal legislation in the United States that regulates the trading of commodity futures in the markets. This federal act was passed by the U.S government in 1936 to enable the trade of all futures...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is a Straddle in Options Trading?A straddle is an options trading strategy. A trader buys/sells the Call and Put options for the same underlying asset simultaneously at a certain point in time to use a straddle, provided both options have the same expiry date and...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is Theta?Theta evaluates the value of the options price to the passing of time. This calculates the rate, at which the price of options is particularly in terms of time value, rises or decreases as the time to expire approaches. For example, if an option is worth...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is The Kelly Criterion?The Kelly criterion is a formula used in estimating the growth of capital, it also calculates the expected value of wealth over a long period of time. The Kelly criterion was developed in 1956 by John L. Kelly, Jr and since then has been a...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is an Intermarket Analysis?The Intermarket analysis looks at how different market sectors operate in relation to other sectors. It looks at how various related asset classes determine the financial markets strengths or weaknesses. Examples of such assets include...
by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets
What is Bubble Theory?The bubble theory refers to a financial hypothesis involving a rapid upward movement of security prices followed by a sudden sharp price fall. This forces investors to withdraw from overvalued assets. The assumption is that the prices of assets...
