A digital option (also a binary option) is an option which pays off a fixed amount of money if a...

At inception, swaps are transacted at zero cost to both parties. A swap with a zero cost is called a...

The option contract (option) is a zero-sum game (not a win-win situation) because the gains made by the option's buyer...

An equity call swap is similar in concept to a basis swap as both involve two variable legs. The former...

Churning is a manipulative trading tactic (a type of volume manipulation) whereby a stock is excessively traded to inflate its...

The price movement that is caused by executing a trade/ trading order. Positions to buy or sell (long positions/ short...

Leverage in all its forms involves the process of magnification. Financial leverage and physical leverage are used to produce some...

Financial leverage changes a company's returns and risk. As far as profitability is concerned, financial leverage affects a company's earning...

The income statement displays the financial result of a company's operations over the course of its financial year or a...

Both operating leverage and financial leverage involves some form of magnification. They magnify changes to earnings due to the presence...