With the start of New Year, every
Forex trader has new hopes for business in mind, new resolutions to follow in
coming days, and new lessons to learn. In order to add more knowledge to your
book of Trade, here are few terms elaborated by experts at a best Foreignexchange company in Chandigarh –
Off-Balance Sheet –
Financing a company or raising
any fund, which is not visible on the balance sheet of that company are known
as off-balance sheets. Example of such sheets includes forward rate agreements
and interest rate swaps.
Offsetting Transaction –
When an investor enters
equivalent but different position to an already occupied position, thereby
balancing the complete positions. An off-setting transaction to the initial
purchase would be considered to be a sale.
Open Position / Open
A valid offer or the order which
is still pending to be executed is the open position, which can put any trader
at risk as per the hike in the price, fall, or risky moments in exchange rate.
Options
Options are tradable contracts
that give you the right, not the obligation to buy or sell securities,
commodities, or currencies for future at a pre-decided price. Options are used
to hedge against adverse price movements to speculate frequent changes.
A wise word of knowledge is never
going to harm you, so add these terms to your glossary and utilize them wisely.
We will come up again with more delights to your knowledge.
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