Author Archives: Administrator

The notional amount (or notional principal amount or notional value) on a financial instrument is the nominal or face amount that is used to calculate payments made on that instrument. This amount generally does not change hands and is thus … Continue reading →

To debit or credit on a daily basis a margin account based on the close of that day’s trading session. In this way, buyers and sellers are protected against the possibility of contract default. www.unitedfutures.com/futuresTerms.htm   Describes the daily settlement … Continue reading →

Fair value, also called fair price (in a commonplace conflation of the two distinct concepts), is a concept used in accounting and economics, defined as a rational and unbiased estimate of the potential market price of a good, service, or … Continue reading →

Risk inherent to the entire market of segment of market

The risk of price change dure to unique cricumstances of percific securities as opposed to the overall market. This risk can be virtually eliminated from a portfollio through dirvesification… also called un systematic risk

What Does Default Risk Mean? The event in which companies or individuals will be unable to make the required payments on their debt obligations. Lenders and investors are exposed to default risk in virtually all forms of credit extensions. To … Continue reading →

What Does Business Recovery Risk Mean? A company’s exposure to loss as a result of damage to its ability to conduct day-to-day operations. Analysis of business recovery risk involves categorizing threats according to their short-, medium- and long-term impact. Companies … Continue reading →

What Does Tranches Mean? A piece, portion or slice of a deal or structured financing. This portion is one of several related securities that are offered at the same time but have different risks, rewards and/or maturities. “Tranche” is the French word for … Continue reading →

Shh…!!! I am very sofisticated mathematically. So, I would think that I would not have any issues understanding reading business analytics such as Value at Risk (VaR) articles. How wrong could I be!. The difficulty is not in the mathematics … Continue reading →