Good to know - Interesting tems of the day

[mohabbat]

Hello guys,

From now on, almost every day a term will be provided here and I think it worth paying a little attention and good to know for your own financial knowledge.

Warmest Regards
News Department

Actually this is very good news for every Forex trader ,and I think it is very big way for trading skill development. because a single trader can not advance on this market easily. so communication with others trader better way for trading skill development.

[profit]

Actually this is very good news for every Forex trader ,and I think it is very big way for trading skill development. because a single trader can not advance on this market easily. so communication with others trader better way for trading skill development.

News from brokers may be of help sometimes, for example I use economic overviews to get a quick glance on fundamentals and correct my techy trades according. Particular value is possible volatility, clearing this I set my SL according to it.

[PCMNewsdesk]

Grantor Retained Annuity Trust - GRAT

An estate planning technique that minimizes the tax liability existing when intergenerational transfers of estate assets occur. Under these plans, an irrevocable trust is created for a certain term or period of time. The individual establishing the trust pays a tax when the trust is established. Assets are placed under the trust and then an annuity is paid out every year. When the trust expires the beneficiary receives the assets tax free.

[PCMNewsdesk]

False Signal

In technical analysis, a false signal refers to an indication of future price movements which gives an inaccurate picture of the economic reality. False signals may arise due to a number of factors, including timing lags, irregularities in data sources, smoothing methods or even the algorithm by which the indicator is calculated.

[PCMNewsdesk]

Bad Bank

A bank set up to buy the bad loans of a bank with significant nonperforming assets at market price. By transferring the bad assets of an institution to the bad bank, the banks clear their balance sheet of toxic assets but would be forced to take write downs. Shareholders and bondholders stand to lose money from this solution (but not depositors). Banks that become insolvent as a result of the process can be recapitalized, nationalized or liquidated.

[PCMNewsdesk]

Valuation

The process of determining the current worth of an asset or company. There are many techniques that can be used to determine value, some are subjective and others are objective.

[PCMNewsdesk]

Signaling Approach

The idea that insiders have information not available to the market. Moves made by insiders can signal information to outsiders and change the stock price.

[PCMNewsdesk]

Rounding Bottom

A chart pattern used in technical analysis, which is identified by a series of price movements that, when graphed, form the shape of a "U". Rounding bottoms are found at the end of extended downward trends and signify a reversal in long-term price movements. This pattern's time frame can vary from several weeks to several months and is deemed by many traders as a rare occurrence.

[PCMNewsdesk]

Negative Carry

A situation in which the cost of holding a security exceeds the yield earned. A negative carry situation is typically undesirable because it means the investor is losing money. An investor might, however, achieve a positive after-tax yield on a negative carry trade if the investment comes with tax advantages, as might be the case with a bond whose interest payments were nontaxable.

[PCMNewsdesk]

Balanced Investment Strategy

A portfolio allocation and management method aimed at balancing risk and return. Such portfolios are generally divided equally between equities and fixed-income securities.