Nicola Sargeant

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  1. Investing

    What is the difference between a broker and a market maker?

    A broker is an intermediary who has a license to buy and sell securities on a client's behalf. Stockbrokers coordinate contracts between buyers and sellers, usually for a commission. A market maker, on ...
  2. Forex

    How does leverage affect pip value?

    A standard forex account has specific lots and pip units. A lot is the minimum quantity of a security that may be traded, while a pip is the smallest amount by which a currency quote can change. Typically, ...
  3. Options & Futures

    What risks do organizations face when engaging in international ...

    When an organization decides to engage in international financing activities, they also take on additional risk as well as opportunities. The main risks that are associated with businesses engaging in ...
  4. Investing

    Are domestic and foreign subsidiaries included on a company's ...

    A subsidiary is a company that is controlled by another 'parent' company. The subsidiary acts and operates like its own entity but it still is connected with the larger company. When there is majority ...
  5. Active Trading Fundamentals

    What does "buy on the cannons, sell on the trumpets" mean?

    All the events and news that happen around the world can have a great impact on the stock market. Very often, if a war breaks out or political problems arise the stock market will take a plunge. The saying ...
  6. Active Trading Fundamentals

    What is the difference between hedging and speculation?

    Hedging involves taking an offsetting position in a derivative in order to balance any gains and losses to the underlying asset. Hedging attempts to eliminate the volatility associated with the price of ...
  7. Retirement

    What is the difference between principles-based accounting ...

    Almost all companies are required to prepare their financial statements as set out by the Financial Accounting Standards Board (FASB), whose standards are generally principles-based. Recently, there has ...
  8. Investing

    Is an earnings surprise priced into the opening value by ...

    An earnings surprise is an event where the earnings of a company are greater or lower than the predictions put forth by analysts, usually by a relatively large margin. Depending on the earnings report, ...
  9. Investing

    What are the determinants of a stock's bid-ask spread?

    Stock exchanges are set up to assist brokers and other specialists in coordinating bid and ask prices. The bid price is the amount that a buyer is willing to pay for a particular security; the ask price ...
  10. Forex

    Can I trade a currency when its main market is closed?

    In the forex market, currencies from all over the world can be traded at all times of the day. The forex market is very liquid, and the increased availability of advanced technology and information processing ...
  11. Investing

    How are futures used to hedge a position?

    Futures contracts are one of the most common derivatives used to hedge risk. A futures contract is as an arrangement between two parties to buy or sell an asset at a particular time in the future for a ...
  12. Forex

    How do central banks acquire currency reserves and how much ...

    A currency reserve is a currency that is held in large amounts by governments and other institutions as part of their foreign exchange reserves. Reserve currencies usually also become the international ...
  13. Investing

    Why is the U.S. stock market doing well despite the recent ...

    The U.S. economy is one of the largest and most important economies of the world. With the continual growth of its GDP, the U.S. economy continues to overshadow the rest of the world. The main reason for ...
  14. Forex

    How do companies benefit from interest rate and currency ...

    An interest rate swap involves the exchange of cash flows between two parties based on interest payments for a particular principal amount. However, in an interest rate swap, the principal amount is not ...
  15. Options & Futures

    What is the difference between leverage and margin?

    In financial terms, leverage is reinvesting debt in an effort to earn greater return than the cost of interest. When a firm uses a considerable proportion of debt to finance its investments, it is considered ...
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