Decoding Finance
Meaning of International Arbitrage International Arbitrage is the process of selling and buying foreign securities and ADRs simultaneously to take advantage of imperfect pricing in different international markets. Arbitrage is the process of simultaneously selling and buying the same assets…
What is Futures Margin? Futures margin is a precondition to enter into future contract. Under future contract two parties are agree to sell and buy an underlying asset on future date at a pre-determined price. But if either party default…
Meaning of Future Contract Future contract is a derivative contract under which two parties are agreed to buy and sell an underlying asset at future date on agreed upon price. This derivative contract provides both parties a right and an…
What is Triangular Arbitrage? Triangular Arbitrage is the result of mis-match of exchange rate of three currencies. Under this mechanism arbitrageur takes advantage of discrepancy among three different currencies in the foreign exchange market. Triangular arbitrage may exist only when…
Meaning of Two Point Arbitrage Buying a currency in one market and selling it at higher price in another geographically different market is called two-point arbitrage. Normally exchange rate for a given currency should be same in every part of…
OVERVIEW Hello friends welcome to Finance Cracker. In this article I will give you the list of top 10 best mutual fund to invest in 2020. I know, you may have watched so many advertisement about Mutual Funds like ‘Mutual…
MEANING OF COVERED INTEREST ARBITRAGE Under Covered Interest Arbitrage (CIA) arbitrageur takes the advantage of interest rate differential between two countries by hedging himself under forward contract to earn riskless profit. The term ‘Covered’ means hedging through forward contract in…
MEANING Net Asset Value (NAV) is the value of a unit of a mutual fund. It is a price at which an investor can buy or redeem the units of mutual funds. In other words, we can say that it…
MEANING Expense ratio is an annual fee charged by the mutual funds to meet its expenses which are incurred for managing the funds. A mutual fund is a trust that pools money from a number of investors who share a…
MEANING Mutual Funds are trust that pools money from a number of investors who share a common financial goal and invests the same in equities, bonds, money market instruments and/or other securities. Mutual funds are the most suitable investment for…