Day trading is a trading strategy which revolves around the opening and closing positions within a single day. Day trading usually requires large amounts of leverage and ...
The DAX is the benchmark index used in Germany, similar to the NASDAQ or S&P500. It is the market capitalization-weighted measure of the 30 largest stocks on the Frankfurt Stock Exchange....
The credit rating of an individual refers to the likelihood that that individual will be able to repay any debt. The credit rating is usually given in the form of a FICO score, which is based upon bor...
A Credit Default Swap (CDS) is a financial instrument that is effectively insurance on a bond. The idea behind them is that the owner of a CDS pays a certain amount per year (interest rate b...
Crack spread is a term used in oil futures trading and is derived from the chemical process of cracking (heating crude oil to certain temperatures to distill off different grades of fuel). A...
A covenant is a term used in loan documents (for example in an LBO) and any other kind of bond issuance and it dictates any terms of a corporate takeover or acquisition or bond repayment. The cov...
Covariance is a statistical term used in security and portfolio evaluation, and it measures the amount which two assets move in relation to each other. A positive covariance means the assets move in t...
The coupon rate is the interest that a bond pays when it is issued. ...
The coupon rate is the interest that a bond pays when it is issued. For example, a $100,000 bond with a coupon rate of 2.5% will pay $2500 per year. The interest is usually split into several payments...
Counterparty Risk is the risk that an investor is exposed to when taking out any kind of contractual position (CDS, option, future etc.) The risk is that one (or both) of the parties involved will not...