DefinitionFiat money is a currency without intrinsic value that has been established as money, often by government regulation. Fiat money does not have use value, and has value only because a government maintains its value, or because parties engaging...
What is 'Farm Credit System - FCS' The Farm Credit System is a nationwide network of cooperative banks and associations that provide credit to farmers, agricultural concerns and related businesses. It was created by Congress in 1916...
What is 'Falling Three Methods' A bearish candlestick pattern that is used to predict the continuation of the current downtrend. This pattern is formed when the candlesticks meet the following characteristics: 1. The first candle in...
What is the 'Federal Discount Rate' The federal discount rate is the interest rate set by the Federal Reserve on loans offered to eligible commercial banks or other depository institutions as a measure to reduce liquidity problems...
What is a 'Fade' A fade is a contrarian investment strategy used to trade against the prevailing trend. "Fading the market" is typically very high risk, requiring the trader to have a high risk tolerance. A fade...
What is Forex Trading
Forex trading is the process of buying and selling currencies on the foreign exchange market. The foreign exchange market is a global marketplace where traders buy and sell currencies. Currencies are traded against each other, and...
What is the 'Fama And French Three Factor Model' The Fama and French Three Factor Model is an asset pricing model that expands on the capital asset pricing model (CAPM) by adding size and value factors to...
What is 'Federal Energy Regulatory Commission - FERC' An independent agency responsible for regulating interstate oil and gas pipelines and sales, as well as the transmission of electricity from state to state. In addition, the Energy Policy...
DefinitionThe "Fed model" is a theory of equity valuation that has found broad application in the investment community. The model compares the stock market's earnings yield to the yield on long-term government bonds. In its strongest form the Fed...
Definition
A fixed interest rate loan is a loan where the interest rate doesn't fluctuate during the fixed rate period of the loan. This allows the borrower to accurately predict their future payments. Variable rate loans, by contrast, are anchored...