Hedging essentials for the trader

Hedging essentials for the trader

Hedging is a common strategy used by investors in order to mitigate volatility risk. The main purpose of a hedge position is to offset any potential losses incurred by the investments. Not to generate profit or gain value. Insurance policies are one of the most basic and widely used forms of hedging. The primary purpose … Read more

Swap essentials for the trader

Swap essentials for the trader

What is a swap? In common terminologies, a swap means to exchange or to barter. As for the business and finance language, a swap is a derivative contract. It can be thought of simply as a priced security derived from one or a variety of underlying assets or financial instruments and it can be exchanged … Read more