Currency exchange dates back from ancient times when traders exchanged coins originating from different countries. Silver and gold coins were used and valued based on their weights and their size. In the Roman empire, the government held a monopoly...
Together with Standard & Poor’s and Fitch, Moody’s comprises the Big Three credit rating agencies. Moody’s Corporation is a financial service holding company of Moody’s Investment Service and Moody’s Analytics. It was founded by John Moody in 1909 in...
Helicopter money is the phrase crafted by Milton Friedman in 1969 trying to explain the consequences of changes in base money. It is a theoretical unconventional monetary policy to be used in combating with deflation.
“Let us suppose now that...
Contractionary monetary policy is the set of policies conducted by central banks aiming to curb inflation and slow overheated economic growth. Through its instruments, the central bank tries to halt the overall rise of prices in the economy and...
ECN
ECN stands for Electronic Communication Network and represents the successful solution in providing clients direct access to other market participants. It is based on the Financial Information Exchange Protocol the FIX Protocol. It enables brokerage to obtain needed liquidity...
Bank of England
Eight-oldest bank in the world as founded in 1694, the Bank of England (BoE) began as a private bank that would act as a banker to the Government. The Bank was nationalized in 1946 which gave the...
Credit Default Swap is a financial derivative providing insurance in case of a credit event, usually a default on a loan. It provides investors with protection and decreases the risk. If a creditor assumes his borrower will not meet...
Risk reversal is an options trading strategy used to hedge risk. The strategy protects against adverse movements but at the same time limits potential profit. A trader buys one option and other write depending on a position in underlying....
Purchasing Managers Index (PMI) is the leading indicator of the economic growth and directions of economic trends. It is derived from the survey of private businesses in specific sectors. The index is published monthly and observed by various market...
LIBOR stands for London Interbank Offered Rate and serves as a globally accepted key benchmark for short-term interest rate indicating borrowing costs between banks. It is produced for five currencies (CHF, EUR, GBP, JPY and USD) and seven tenors...
