How Companies Use Derivatives To Hedge Risk
If you are considering a stock investment and read the company uses derivatives to hedge some risk, should you be concerned or reassured? Warren Buffett’s stand is famous: He has attacked…
Editor’s Pick
7 posts
How to Trade Options on Webull
Investopedia’s broker reviews judged Webull as the best brokerage for low-cost option trading. That’s no small feat. Webull is among the few that offer commission-free option trading, but among those,…
How to Trade Options on Robinhood
Trading options on this groundbreaking platform is easy to do. From the moment you begin opening the account, right up to the point of placing your order, Robinhood designed the…
Cross-Currency Swap: Definition, How It Works, Uses, and Example
What Is a Cross-Currency Swap? Cross-currency swaps are an over-the-counter (OTC) derivative in a form of an agreement between two parties to exchange interest payments and principal denominated in two different currencies.…
How to Open a Swing Trade Account
Swing trading is the act of transacting in a financial market over a minimum of one day, but up to several weeks, to gain profits. Typically, swing traders utilize technical…
How to Trade 0DTE Options
Once you’ve had a little experience trading options, you might become curious about the opportunities of trading options intraday. In 2022, the Chicago Board of Options Exchange (Cboe) announced that…
Synthetic: Definition in Finance, Types of Assets
What Is Synthetic? Synthetic is the term given to financial instruments that are engineered to simulate other instruments while altering key characteristics, like duration and cash flow. Key Takeaways Synthetic…