Worden Stochastics – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What is the Worden Stochastics?The Worden Stochastics indicates the percentile rank that a recently closed price obtains in comparison to other closing prices over a specific period of time. Traders consider using this indicator for knowing if a specific security...

Actuals (Commodities) – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What are Actuals in Commodity Trading?Actuals refer to homogenous commodities that form the basis of future trade. Actuals may be any commodity, however, the most common include natural gas, crude oil, gold, and diamonds among others. Note that actuals may be traded...

Ad Infinitum – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What are Ad Infinitum?Ad infinitum refers to a Latin phrase which means continue forever and without limit. This term is used in finance to refer to payments from assets at fixed intervals which are presumed to last forever. However, some other financial merchandise...

Adjunct Account – Explained

by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting

What is an Adjunct Account?An adjunct account refers to an account that leads to increase in the book value of a liability account. It is typically used to adjust the value of the liability account with a credit to match the total value of debits to asset accounts in...

Adjustable Peg (FOREX) – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What is an Adjustable Peg?Adjustable peg is a foreign-exchange rate policy in which the domestic currency is measured in terms of standard currency such as U.S. dollar, but can be regulated as per the dynamic market scenario. Such flexible adjustments increase a...

Accrual Swap – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What is an Accrual Swap?The accrual swap refers to a type of interest rate swap where interest accrues and is paid to one counterpart (one side) as long as the reference rate stays within the determined index rate range. In this kind of rate, one counterpart meets the...

Accountants’ Index – Explained

by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting

What is an Accountant’s Index?An Accountants Index is a list of books and papers (pamphlets, articles and government documents) pertaining to the field of accounting that is of interest to accounting professionals, especially in the United States. The list is...

Accommodation Trading – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What is Accommodation Trading?Accommodation trading is an illegal trading in which a trader agrees to accommodate another trader through a non-competitive stock trade. It is a type of trade in which two or more traders cooperate to trade a security for another at a...

Call Swaption – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What is a Call Swaption?A swap agreement refers to a contract that allows two individuals or parties exchange or swap financial instruments. This exchange is with the aim of attending to the different needs of both parties. In a call option, a call swaption gives its...

Calmar Ratio – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What is the Calmar Ratio?The Calmar ratio refers to a formula used in measuring the performance of a fund by comparing the annual compounded rate of return and the maximum drawdown risk of the fund. The Calmar ratio is often used to evaluate hedge funds and Commodity...