Category Archives: Bond Yield

Earnings Release Week

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This week will be a busy week up ahead for the market community, a lot will be put in the spotlight but the one thing that will stand out is the geopolitical turmoil the US created after the strikes it made in Syria last week.

Financial Institutions and Banks

This will be the first of the big weeks in the financial market, and for this week, all the highlights are focused on the top financial institutions and banks. The scheduled reports for this week, this Thursday, are from prominent banks and financial institutions JPMorgan Chase & Co, Wells Fargo & Co, and Citigroup Inc.

The banks have been on a rollercoaster of a ride from the past months under the new Trump administration. Some other factors that may have triggered the fiscal stimulus hopes for the financial institutions are; deregulations talks and the Fed’s decision to be sterner and hiking the interest rate for a couple of times this week.

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Inflation off The Bat

There will also a big debacle for Friday because of the exclusive inflation data that will be unveiled; the data include whole March’s progress. With the Fed’s recent hikes and its latest meeting last Wednesday hinted that if the inflation data continue to roll, the central bank may and will increase another three or four interest hikes this year.

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G-7 Meets in Italy

The G-7 is a group of countries that consists of Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States. These countries have started a 2-day summit meeting today in Italy after the alarming attack the US made against Syria, investors and the market community continues to keep track on what would happen in the growing geopolitical crisis.

Then entirety of the 2-day meeting is expected to be disclosed at a press conference dated this coming Tuesday Eastern Time.

Trade12Basics is a daily updated blog about the happenings in the stock market, financial realms, and the world economy. It is also a place to find basics in trading and other sorts of tutorials that you can add to your knowledge. Subscribe to further educate yourself about the field that you are to partake in. Trade12Basics  is here for you!

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Investing Dictionary #3: Expense Ratio

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Expense Ratio is a rare word to stumble upon, it is a word prevalent in-between companies and it varies on more private talks the market community has seen. So going back to Expense Ratio, it is actually a measure of what it costs an investment company to operate a mutual fund.

You may ask how expense ratio is determined; well according to the Investopedia: An expense ratio is determined through an annual calculation, where a fund’s operating expenses are divided by the average dollar value of its assets under management (AUM). Operating expenses are taken out of a fund’s assets and lower the return to a fund’s investors. It is also known as the management expense ratio (MER).

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All You Need To Know About Expense Ratio

Expense ratio varies very differently on each type of fund, operating expenses vary widely. One of the biggest parts or the crucial component of operating expenses lies on the fee paid to a fund’s investment manager or advisor.

Further costs include recordkeeping, custodial services, taxes, legal expenses, and accounting and auditing fees. Investopedia makes a clear distinction between funds, “expenses that are charged by the fund as reflected in the fund’s daily net asset value (NAV) and do not appear as a distinct charge to shareholders.”

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Funds to Keep In Mind

There are two different expense ratio fund; Index Funds and Actively Managed Funds are both type of funds to keep a list on. Index Funds usually carry very low expense ratios; the managers who oversee these funds are plainly repeating a given index, so the need to have a full management team on staff is deliberately discarded.

Actively managed funds, on the other hand, employs teams of research analysts examining companies as potential investments. By coming up with a team, creating and managing this team adds more costs that are then get passed on to shareholders in the form of higher and bigger expense ratios.

Trade12Basics is a daily updated blog about the happenings in the stock market, financial realms, and the world economy. It is also a place to find basics in trading and other sorts of tutorials that you can add to your knowledge. Subscribe to further educate yourself about the field that you are to partake in. Trade12Basics  is here for you!

What is the FCA?

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If you’ve been around the Forex trading market, you’ve probably heard or saw FCA somewhere on those trading websites and what have you. First of all, FCA stands for Financial Conduct Authority; they are the regulator for over 56,000 financial services and firms and financial markets in the UK and the prudential regulator for over 24,000 of those firms.

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What Does FCA Do?

FCA is the pioneer for the safer and more honesty financial market, they promote fairness and effectiveness for all consumers all over the world. FCA said, “It is our aim to make markets work well – for individuals, for business, large and small, and for the economy as a whole.”

The FCA started on April 1, 2013. They then started to grow and grow each year, regulating over 56,000 financial and the prudential regulator for over 24,000 of these firms. FCA governs 2.2 million people that are employed in the UK financial service who contributes 65.6 billion pounds in tax to the UK economy.

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How Does FCA Do All The Regulating?

According to FCA’s website, this is how;

Our strategic objective is to ensure that the relevant markets function well and our operational objectives are to:

Protect consumers – we secure an appropriate degree of protection for consumers.

Protect financial markets – we protect and enhance the integrity of the UK financial system.

Promote competition – we promote effective competition in the interests of consumers.

The Financial Conduct Authority continues as a public body that is funded completely by the firms and financial service providers they regulate by charging those fees. They are also accountable to the Treasury, which is responsible for the UK’s financial system, and to the parliament.

Finally, they also work with several consumer groups, trade associations, and professional bodies domestic regulators, EU legislators, and a wide range of other stakeholders.

Trade12Basics is a daily updated blog about the happenings in the stock market, financial realms, and the world economy. It is also a place to find basics in trading and other sorts of tutorials that you can add to your knowledge. Subscribe to further educate yourself about the field that you are to partake in. Trade12Basics  is here for you!

The Types of Dollars in the World

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We all know that the dollar is the native currency in the United States, but there are actually more countries that call their currency the dollar. These are some countries that share the same currency name with the land of the brave!

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Canadian Dollar

Canadian Dollar or CAD for its ISC code is the currency people in Canada use! It is mostly represented as C$ to remove any confusion among other dollars, but often times it is also represented as $. Just like any other dollar CAD is also subdivided into 100 cents, CAD is one of the major Forex currencies and is currently the 7th most traded currency in the world.

The CAD, as of today, produces and circulates 5 cents, 10 cents, 25 cents, 50 cents, 1 dollar and 2 dollars. Unfortunately, the production for the 1 cent was discontinued somewhere around the year 2012, banknotes that the CAD produces and circulates are in the form of 5, 10, 20, 50, and of course 100 Canadian dollar. One more thing about the current Canadian bills is, they are made of polymer as of 2011, as opposed to paper for the previous years of production.

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Belize Dollar

Belize Dollar or BZD for its ISC code is the major currency of Belize, it is represented as BZ$ for further distinguishing from other dollar currencies. This currency dates as far as 1976; it then replaced the current currency of the country which was the British Honduras Dollar. Like any other dollar, the BZD is also subdivided to 100 cents.

Along with the transforming of British Honduras on late 1976, it also replaced its currency to Belize dollar. It was freed from the British colony in late 1981, now it trades in the rate of BZ$2 to US$1.

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Australian Dollar

One of the most popular dollar currency, the Australian dollar or AUD for its ISC code; like most of the dollar currency, AUD is also subdivided to 100 cents. It is commonly represented as A$ to disperse any further confusions.

The AUD was once known as the Australian pound in 1966. But after several years, 1983 to be exactly, the pound was then transfigured from pound to dollar. As of late, the AUD is one of the major currencies exchanged on the world’s Forex markets. It ranks as the 5th most traded currency just behind the USD, EUR, JPY, and GBP.

The AUD circulates coins at 5 cents, 10 cents, 20, cents, 50 cents, 1 dollar, and 2 dollars. While the current banknotes circulation it has is as follows; 5, 10, 20, 50, and 100. The banknotes circulated are all made from polymer instead of papers.

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New Zealand Dollar

The New Zealand Dollar or NZD for its ISO code, the most common symbol the New Zealand dollar is recognized as NZ$. Like any other dollar currency, it is also subdivided to 100 cents. A common slang the NZD has is Kiwi, because of the kiwi bird that is present on their NZ$1 coin.

The NZD replaced the New Zealand pound at 1967, it has been pegged for a quite bit through a series of different currency pegs but has been allowed to float freely since 1985. The NZD is one of the major currencies exchanged on the world’s Forex markets. NZD currently circulates coins in 10 cents, 20 cents, 50 cents, 1 dollar, and 2 dollars. It also currently circulates banknotes are 5, 10, 20, 50, and 100 dollars.

Trade12Basics is a daily updated blog about the happenings in the stock market, financial realms, and the world economy. It is also a place to find basics in trading and other sorts of tutorials that you can add to your knowledge. Subscribe to further educate yourself about the field that you are to partake in. Trade12Basics  is here for you!

Trading Commodities

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The commodity as the Merriam-Webster would define it;   an economic good: such as a:  a product of agriculture or mining agricultural commodities like grain and corn b:  an article of commerce especially when delivered for shipment reported the damaged commodities to officials c:  a mass-produced unspecialized product commodity chemicals commodity memory chips.

This simply puts the milk and orange juice we leisurely drink, from the means of energy to power up our homes and vehicles, commodities are a big chunk of our daily lives. In the world of investing, commodities are part of a diversified investment portfolio and they can also be traded in the global marketplace. Commodities are literally anywhere and everywhere in the world, they also garner billions and billions of dollars from investment every day.

Spot versus Future Commodities Trading

The spot price is defined as the current price of a particular market portfolio, in this case, a certain commodity, and can also be bought or sold for the most immediate delivery. One major thing to remember for spot price is that they are very susceptible and subject to extreme volatility. The main difference it has with future prices is that; future prices are increasingly higher over time and higher futures prices reflect carrying costs such as storage.

Commodities are very flexible as it is tradable both in a spot and in future markets. An increasing trend in the commodities community is trading individuals in the form of futures; this happenstance means that you won’t be buying or selling the commodity itself but rather a contract of a certain price by a stated date in the future.

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Commodity Trading Round Up

Just like any other investment goal, we would want to buy low and sell high! The only caveats with trading commodity are; 1) Commodities are highly leveraged and 2) Instead of share, commodities traded in contract sizes instead. One more thing to remember when you start trading commodities is that investors can buy and sell positions whenever the markets are open.

The bottom line is, commodities open a wide variety for your investment portfolio. It expands every portfolio from the usual stocks, bonds, and mutual funds. Every investment carries risks, but what set trading with commodity apart is the alluring high leverage it brings on the table.

Trade12Basics is a daily updated blog about the happenings in the stock market, financial realms, and the world economy. It is also a place to find basics in trading and other sorts of tutorials that you can add to your knowledge. Subscribe to further educate yourself about the field that you are to partake in. Trade12Basics  is here for you

Happy International Women’s Day!

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In memory of the recently concluded International Women’s Day, we pay homage to the marvelous women in the business community! Today we visit one of the largest and noteworthy automobile market, General Motors, and its current CEO Mary Barra.

In memory of the recently concluded International Women’s Day, we pay homage to the marvelous women in the business community! Today we visit one of the largest and noteworthy automobile market, General Motors, and its current CEO Mary Barra.

Barra’s Step In The Auto Market

Mary Barra is the CEO of the male predominantly automobile market, dubbed as the most powerful woman in business by Fortune magazine. As I mentioned, the automobile world is and was huddled by male personalities, Barra is the first female CEO General Motors and well, she is the first one in the whole automobile community and company in the United States. She is also one of the top three largest individual shareholders in the community.

She raised to the highest seat in General Motors last January 2014. Barra took the positioned after Daniel Akerson, he is the man behind the company’s profitable run after it filed Chapter 11 bankruptcy protection in 2011. One of the recent achievements Barra has is a seat amongst Trump’s strategic and policy forum, one of the only three women along that line.

The multinational company General Motors is currently priced at around $56 billion, and being the CEO of that company also pays very well. 2015 statistics shows that Barra’s 2015 compensation was at $28.6 million including a base salary of $1.75 million and a little over $3 million bonus. She also received ab awarded options worth $11 million and stock awards in excess of $12 million along with perks worth half a million dollars.

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Amazing Mary Barra Facts!

Another amazing fact about Mary Barra is she has been with General Motors since she was 19! She studies in what was once Kettering University when GM required applicants to be their sponsor, Barra took this at the first step in its well-lit road with the company. Her first tweet is a picture of a new Cadillac! She created an account several months after being CEO of GM.

 

Trade12Basics is a daily updated blog about the happenings in the stock market, financial realms, and the world economy. It is also a place to find basics in trading and other sorts of tutorials that you can add to your knowledge. Subscribe to further educate yourself about the field that you are to partake in. Trade12Basics  is here for you.

 

 

Forex Smartphone Apps Crash Course!

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The past years has proven that anything can innovate, smartphones were smarter, electric cars and everything from your speakers down to your appliances is voice recognized and controllable. It has been a whirlwind of experiment and innovation, everything has been accessible with your phone and with it, you are also connected to the world! One thing that sparked a bigger sensation in the community is the presence of Forex smartphone application.

Smartphone and Forex!

Smartphone applications are really a treat; they are ever present and available in your local store! Apple store if you are using any iOS powered devices or the Play Store for any android powered devices. These applications or tools helps traders to have the most pleasant experience when it comes to trading, they also provide traders with real-time data of stocks available in the market, the applications also analyze currencies and place trades anytime and anywhere. These apps are either free or paid, some are pretty accessible and some may need to be upgraded to pro to utilize its full potential.

The most fundamental requirement to access these applications is an internet. You can’t use them without one; you won’t be able to update their statistics and data. You must be connected to a Wi-Fi or you are using your mobile data!

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Trading Applications Round Up

There are a lot of variety you can choose from when looking for the right trading up for you! Don’t worry if this one doesn’t fit your preferences or it may seem lackluster. You will always find a better one in the swimming pool of trading application. There are also similar apps from the app engineers that also eases the trading process for everyone, several suggestions within your app store are provided so don’t forget to keep a closer look!

Always remember that a lot of the popular apps may not fit your taste, but always remember that always having one and mastering it can significantly boost your trading! To sum it up, the best feature Forex and trading applications give is their availability; you can trade on the fly and anywhere, provided that you have access to the internet!

Trade12Basics is a daily updated blog about the happenings in the stock market, financial realms, and the world economy. It is also a place to find basics in trading and other sorts of tutorials that you can add to your knowledge. Subscribe to further educate yourself about the field that you are to partake in. Trade12Basics  is here for you.