Business

A crawling peg is a way for a country to set the value of its money compared to the money from other countries. The country’s central bank – which is like the boss of all the other banks – plays a big part in this. Changing the value slowly You know how prices can go…

Crack spread is a term used in the energy market. It’s a kind of spread that shows the difference in price between crude oil and something made from oil, usually gasoline or heating oil. You can trade crack spreads on some exchanges using a single future or option. What Are Crack Spreads Used For? Hedgers…

You might hear fancy words like “covered call” or “buy-write” thrown around by the finance folks. But really, a covered options writer is just someone who sells options contracts and actually owns the thing they’d have to hand over if the buyer wanted to use their option. It’s kinda like selling someone the right to…

A covered warrant is a special kind of option. An option gives you the right to buy or sell something at a certain price by a certain date. Covered warrants are a type of equity option, which means they’re an option to buy shares of a company’s stock. Here’s the key thing about covered warrants…

So let’s talk about something called a “covered position.” That’s when you’ve got a long position or a short position in finance, and you use some other financial stuff called a “hedge” to protect yourself from losing money because of it. What’s a long or short position? Well, a long position is when you buy…

You might’ve heard some fancy Wall Street types tossin’ around the term “covered option”. But what the heck does that even mean? Here’s the scoop in plain English that anyone can understand. A covered option is when you sell an option contract, but you already own the thing the option represents. The “thing” is usually…

Covered interest arbitrage is a way some people make money on the differences between interest rates and exchange rates in different countries. It’s a type of arbitrage – which means taking advantage of differences in prices to make a profit. Currencies, exchange rates and interest rates To understand how covered interest arbitrage works, you need…

A covered call is a special type of trading deal with options. Options are a way to buy or sell something later for a price you decide now. With a covered call, a person sells someone else the right to buy stock they already own at a certain price by a certain date. If the…

LipstickAlley started in September 2000 as a hangout spot for chatting about stuff that matters to Black women and the African American community. It began as a tiny message board but quickly exploded into one of the busiest online discussion places. The name indicates how vital beauty and makeup are in Black culture, but there’s…

Covenants are special rules that are part of some loan agreements and bond contracts. They’re promises that the borrower makes to the lender. The borrower has to follow these rules, or else there can be big consequences. There are two main types of covenants: If a borrower breaks one of these promises, it’s called violating…