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Options and Futures

Hedging

As a financial expert, it is important to understand the concept of hedging. This involves mitigating the risk of price fluctuations in the cash market by taking a counter position in the futures market. This strategy, known as hedging, is commonly used by businesses to safeguard against unfavorable price changes. There are two types of hedging, namely Selling (Short) Hedge and Purchasing (Long) Hedge, which are both utilized by hedgers to protect their assets.

Selling Hedge or Short Hedge

In the realm of finance, it is common practice for individuals to sell futures contracts as a form of protection against potential price declines of commodities that will be...

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Federal Housing Administration (FHA)

Let's delve into the topic of residential mortgage loans and construction standards. The U.S. Department of Housing and Urban Development has a division solely dedicated to t...

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Stock Market

This is also referred to as the stock exchange. A stock market, also known as a stock exchange, is a marketplace where stocks or shares of companies are traded. It serves a...

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Moving Average Charts

In the realm of finance, there exists a powerful tool known as the moving average. This method involves calculating the average price of a security over a specific number of...

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