Tag: Buying

Elder-Ray Index definition explanation

What is Elder-Ray Index?
A technical indicator developed by Alexander Elder that measures the amount of buying and selling pressure in the market. This indicator consists of two separate indicators known as “”bull power”” and “”bear power””. These figures allow a trader to determine the position of the price relative to a certain exponential moving average (EMA).

Bull Power = Daily High – n-period EMA
Bear Power = Daily Low – n-period EMA Read more for examples and further explanation including related video clips and also comments
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Reverse Conversion definition explanation

What is Reverse Conversion?
A finance and risk management technique based on a put-call parity strategy that consists of selling a put and buying call (a synthetic long position), while shorting the underlying stock. As long as the put and call have the same underlying, strike price and expiration date, a synthetic long position will have the same risk/return profile as ownership of an equivalent amount of the underlying stock. Read more for examples and further explanation including related video clips and also comments
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Net Advantage To Leasing – NAL definition explanation

What is Net Advantage To Leasing – NAL?
The total monetary savings that would result from a person or a business choosing to lease an asset, as opposed to purchase it outright. The benefit of leasing is determined by comparing the net present value of purchasing the asset outright to the net present value of leasing it. Read more for examples and further explanation including related video clips and also comments
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Currency Pair definition explanation

What is Currency Pair?
The quotation and pricing structure of the currencies traded in the forex market: the value of a currency is determined by its comparison to another currency. The first currency of a currency pair is called the “”base currency””, and the second currency is called the “”quote currency””. The currency pair shows how much of the quote currency is needed to purchase one unit of the base currency. Read more for examples and further explanation including related video clips and also comments
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Open Market Operations – OMO definition explanation

What is Open Market Operations – OMO?
The buying and selling of government securities in the open market in order to expand or contract the amount of money in the banking system. Purchases inject money into the banking system and stimulate growth while sales of securities do the opposite. Read more for examples and further explanation including related video clips and also comments
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