When analyzing fundamental valuation ratios for micro cap stocks, it is important not to let any single factor summarily eliminate a stock from consideration. Because of the relatively dynamic financial nature of micro cap companies, there are reasons, at times, to discount some factors while putting more weight on other factors when reviewing the financial [...]
Archive of posts filed under the Banking category.
THE CLEARINGHOUSE, MARGINS, AND PRICE LIMITS
As briefly noted in the previous posts, when a trader takes a long or short position in a futures, he must first deposit sufficient funds in a margin account. This amount of money is traditionally called the margin, a term derived from the stock market practice in which an investor borrows a portion of the [...]
FUTURES TRADING
In this article, we look more closely at how futures contracts are traded. As noted above, futures contracts trade on a futures exchange either in a pit or on a screen or electronic terminal. Pit trading is a very physical activity. Traders stand in the pit and shout out their orders in the form of [...]