Arbitrage is the purchase or sale of any financial instrument and the simultaneous taking of an equal and opposite position in a related market, in order to take advantage of small price differentials between markets. When used by academics, an arbitrage is a transaction that involves no negative cash flow at any probabilistic or temporal [...]
BSE Sensex (9328.92) and Nifty (2857.25) closed 7.6% and 7.2% down respectively last week.Nifty put-call ratio was 1.13.Support for Sensex is at 8720 and for Nifty 2670.Resistance for Sensex is at 9900 and Nifty is at 3030.Inflation was also under control at 6.61 v/s 6.84 last week.Crude oil was at 37$..Market lost ground on reports [...]
A contract for difference (CFD) is an agreement between two parties to exchange the difference between the opening price and the closing price of a contract, multiplied by the number of shares, as calculated at the contract’s close.
CFDs are available on the top 350 stocks in the UK as well as on selected stocks in [...]
Both shares of McDonald’s (MCD) and Burger King Holdings (BKC) have underperformed the Standard & Poor’s 500 index over the last year. However, Credit Suisse recently upgraded McD’s while cutting Burger King. At Frontwater we like both for various reasons. Let’s first take a look at McDonalds…Earlier today, Credit Suisse upgraded McDonald’s to Outperform from [...]
Welcome to the wonderful world of equity options. You may have heard that option trading is high risk, and indeed it is, for much the same reasons that spread betting is high risk. The instruments themselves are derivatives from the cash markets, and are highly geared, but options themselves were originally introduced to the US [...]
The advantage of spread betting, as opposed to buying shares, is that it offers one of the simplest ways to bet on markets moving downwards, as they have in recent months. Moreover, bets are free of stamp duty, while any gains are not subject to capital gains tax (CGT).
Most regular readers will be fully aware [...]