Does inflation favor lenders or borrowers?

July 7, 2024 No Comments

Inflation can benefit either the lender or the borrower, depending on the circumstances. If wages increase with inflation, and if the borrower already owed money before the inflation occurred, the inflation benefits the borrower. This is because the borrower still owes the same amount of money,

Does the seller (the writer) of an option determine the details of the option contract?

June 30, 2024 No Comments

A: The quick answer is yes and no. It all depends on where the option is traded. An option contract is an agreement between the buyer and the seller of the contract to buy or sell an underlying asset at a certain price, amount and

Does the seller (the writer) of an option determine the details of the option contract?

July 7, 2024 No Comments

How accurate is the forward rate in predicting interest rates?

June 30, 2024 No Comments

A: Forward rates are extremely limited predictors of actual interest rates. This isn’t particularly surprising, given the multitude of determinant factors for interest rates or the nature and use of forward rates. The imperfections of forward rate forecasts tend to be most glaring before the

How accurate is the forward rate in predicting interest rates?

July 7, 2024 No Comments

How are Bollinger Bands® used in forex trading?

June 30, 2024 No Comments

A: Bollinger Bands are popular with technical analysts and traders in all markets, including forex. Since traders of currency look for very incremental moves to profit, recognizing volatility and trend changes quickly is essential. Bollinger Bands help by signaling changes in volatility. For generally steady

How are Bollinger Bands® used in forex trading?

July 7, 2024 No Comments

How are Bollinger Bands® used in forex trading?

July 7, 2024 No Comments

How are Donchian channels used when building trading strategies?

June 30, 2024 No Comments

A: Donchian channels are used to show volatility, breakouts and potential overbought/oversold conditions for a security. The Donchian system uses adjustable bands that are set equal to the n-period’s highest highs and lowest lows across a moving average. The upper and lower bounds of a

How are Donchian channels used when building trading strategies?

July 7, 2024 No Comments

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