What is Proprietary Trading?
Proprietary trading is a term that relates to the type of trading in which the trader uses his or her own money to participate...
Default Risk
Default Risk A default risk occurs when a partner in a business transaction does not live up to his or her obligations. This can occur...
Risk Parity
What is risk parity Risk parity is an investing strategy that aims to balance risk across asset classes. The goal is to achieve a portfolio...
Net Interest Income
Net interest income is the difference between revenues from interest-bearing assets and costs of servicing liabilities. Bank assets typically consist of commercial and personal...
Bear Call Spread
What is a Bear Call Spread A bear call spread is an options strategy that involves buying and selling two calls with different strike prices...
What is a Direct Cost?
In economics and accounting, a direct cost is a cost directly associated with the object for which the account is maintained. In contrast, a...
Short Call
Introducing Short Call Short call is an investing strategy that involves selling call options with the goal of making a profit when the underlying security's...
Arrow’s Impossibility Theorem
What is Arrow's Impossibility Theorem Arrow's Impossibility Theorem is a key result in social choice theory, which studies how collective decisions can be made from...
How to Calculate Marginal Profit
If you have ever wondered how to calculate marginal profit, you have come to the right place. The definition of marginal profit is simple:...
Platykurtic
What is platykurtic data and why is it important Platykurtic data is data that is more evenly distributed than normal data. In statistics, this term...