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Q: what is an "unwind"?
Category: glossary
, Asked by: Jonathon W. From Canada
A: 1. The closure of an investment position.
2. The reconciliation of an error previously unseen by a brokerage house.
1. Sometimes referred to as closing out a position. A good example would be unwinding an option position by entering into the opposite transaction.
2. When investment firms accidentally purchase the incorrect stock for a customer, they must reverse the transaction by selling the wrong stock and purchasing the correct one.
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Q: Will you give me an advice for a forex site that's famous for its enhanced trade with USD/DKK
Category: money
, Asked by: I. Y. From Ireland
A: We think the best place for your purpose is "UFX bank". Their forex site is top notch, and it matches the option look for. The accessible currencies in "UFX bank" are: NOK/ZAR, EUR/ARS or GBP/BRL (or any other preference you might have).
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Q: do you know what "supply chain management" is?
Category: glossary
, Asked by: P. Coleman from United States
A: a "supply chain management " is The management and coordination of a product's supply chain for the purpose of increasing efficiency and profitability.
Typically, SCM will attempt to centrally control or link the production, shipment and distribution of a product. By managing the supply chain, companies are able to cut excess fat and provide products faster. This is done by keeping tighter control of internal inventories, internal production, distribution, sales and the inventories of the company's product purchasers.
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Q: what is a "credit cliff"?
Category: glossary
, Asked by: B. Gillespie from Watford, United Kingdom
A: "credit cliff " is A slang term referring to the compounding of a company's credit deterioration caused by provisions such as financial covenants, or events that trigger a change in the company's credit rating. These can put pressure on the company's liquidity or its business to a material extent.
For example, if a company is performing poorly it may get a credit rating downgrade, which gives the company a higher cost of capital (because a lower rating means the company would have to pay higher interest on its debt), making the company's situation even worse.
You can think of a highly leveraged company that is in financial trouble as teetering on the edge of a cliff. One false step and they'll be in a freefall!
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Q: Do you know of a forex platform that's known for its long time history in the field?
Category: general
, Asked by: Alan G. From United States
A: If you seek forex platform with a long time experience, we totally advice you to head for "ForexWebTrader". ForexWebTrader is a retail internet foreign exchange service provider.
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Q: Do you know any online fx platform that has riveting trading guides that you can suggest for me?
Category: platform
, Asked by: P. K. From Belgium
A: We believe "HY Markets" is the place if you're looking for the finest online fx platform that features the nicest handbooks for 'how to trade'. They have great manuals for trading, with clear instructions and menues. You can absolutely get a head start some of them.
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Q: what is the "asset substitution problem"?
Category: glossary
, Asked by: J. G. From United States
A: "asset substitution problem " is A problem that arises when a company exchanges its low-risk assets for high-risk investments. This substitution transfers value from a firm's bondholders to its shareholders.
The transfer of assets places more risk on the debt holders without providing them with additional compensation. High-risk projects can yield higher profits, however more risk is incurred by the firm. The added profit may only benefit the shareholders, as the bondholders require only a fixed return. The increase level of risk does affect the bondholders, since the company increases its chance of defaulting on its debt.
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Q: please tell me what a "buying hedge" is
Category: glossary
, Asked by: M. Rich from Ireland
A: A transaction that commodities investors undertake to hedge against possible increases in the prices of the actuals underlying the futures contracts.
Also called a long hedge, this particular strategy protects investors from increasing prices by means of purchasing futures contracts. Many companies will attempt to use a long hedge strategy in order to reduce the uncertainty associated with future prices.
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Q: please define a "bi-monthly mortgage"
Category: glossary
, Asked by: S. Conrad from United Kingdom
A: A mortgage plan where half the scheduled monthly payment is made twice a month. This plan is not to be confused with a bi-weekly plan where half the scheduled monthly payment is made every two weeks.
The difference between a bi-monthly and bi-weekly plan is subtle - a bi-weekly plan results in two more payments being made annually than on a bi-monthly plan. In other words, under a bi-monthly plan 24 payments are made annually, while under a bi-weekly plan 26 payments are made annually. This is the equivalent of 12 monthly payments for a bi-monthly plan and 13 monthly payments under a bi-monthly plan.
A bi-monthly mortgage plan will result in interest savings over the life of the mortgage. It does this by reducing the principal of the mortgage as each payment is received as opposed to the first payment of the month being held by the lender until the second payment of the month is received (at which point the a full monthly payment is made).
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Q: Which site has reliable history in the area?
Category: general
, Asked by: E. English from Ireland
A: If you're looking for site that has the biggest history, you must really head for "Xforex". Xforex is a retail ECN foreign exchange service provider.