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"Investment & Finance" is the place where you find all you need to know about finance, investment, financial markets, financial instruments and products including stocks, bonds, money market tools, active trading, mutual funds, hedge funds, funds of funds, derivatives, forex and so on. Content is categorized into sections and subsections. The financial encyclopedia contains more than 30,000 terms covering all arenas related to investment, finance, economics, statistics, accounting, insurance, etc.
In this section, the fincyclopedia intends to provide coverage on the main events and developments in the financial sphere around the globe and regionally. This is meant to add some context to the overall knowledge and know-how framework of theseencyclopedia. To an extent, market insights and analysis will be injected as a real life component of the broader knowledge based content.
Random Definition
Pips: Digits that are added to or subtracted from the
fourth decimal place in a currency rate quote. For example, in 1.2246, the
number “6” is a pip. It represents the smallest increment of exchange rate
fluctuation. Some argue that the name “pips” is an abbreviation for percentage
in points. It could also be the FX equivalent of
basis points (bps or bips) as used
by traders of bonds and other interest rate-based instruments.
Nevertheless, the pip can be broken down into decimals or
fractionals (which refer to one-tenth of a pip). The bid-ask
spread could be 2.3 pips, meaning 2 pips and 3 decimals. Most
currency pairs are quoted using five pips.
Featured Definition
Mid-Swap: the reference rate which is used to calculate the premium that a bond buyer will pay. Adding a spread to a reference rate is one method to value a bond....