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please define a "heteroskedastic"
glossary FAQ: glossary.
M. F. From United States
16 March, 2009
A measure in statistics that refers to the variance of the errors over the sample.
Most financial instruments, such as stocks, follow a heteroskedastic error pattern. For example, in regression, a mathematical relationship between a stock and some other type of measure is to be discovered over a period of time; the error found between the line of best fit and the actual data point will vary - for instance, as each variable gets larger the error may increase. Visit FOREX.com
do you know what the "52-week high/low" is?
glossary FAQ: glossary.
U. Baird from Montreuil, France
20 March, 2009
a "52-week high/low " is The highest and lowest price at which a stock has traded in the past 12 months, or 52 weeks.
Many investors see the 52-week high or low as an important indicator. For example, a value investor may view a stock trading at a 52-week low as an initial indication of a possible value play (a stock sitting at a price below its intrinsic value). An astute value investor will have to conduct a lot more analysis to come to this conclusion, but the fact that the stock is trading at its 52-week low can be a potential starting point. Visit FOREX.com
please tell me what "linked exchange rate system" is
glossary FAQ: glossary.
Arturo B. From United Kingdom
17 March, 2009
A system of managing a nation's currency and exchange rate by linking the national currency to another base currency that is held at a fixed ratio in deposit at domestic banks.
Once the exchange rate is set, there is typically no interference from the government or through monetary policy decisions that will affect the exchange rate. Currency is only issued when there are reserves in the linked currency to back it up. If the exchange rate begins to shift from the fixed ratio, currency is immediately added to or taken out of circulation to bring the ratio back into balance.
This is different from simply pegging one currency to another; in a linked exchange rate system, currency can only be issued when confirmed reserves in the linked currency are held at local banking institutions. In Hong Kong, for example, this means that every Hong Kong dollar that is floating around in the economy is backed by several U.S. Dollars held in reserve.
The advantage of this system is that it stabilizes the currency and keeps inflation ultra low. On the downside, the nation using it can't leverage advantages in trading with foreign partners, and can't implement monetary policy to adapt to shifts in the domestic economy. Visit FX Solutions
please tell me what the "call warrant" is
glossary FAQ: glossary.
W. G. From Innsbruck, Austria
19 October, 2009
A warrant that gives the holder the right to buy the underlying share for an agreed price, on or before a specified date.
A warrant is similar to an option, the main difference is that warrants are issued by a company attempting to raise capital. Visit HY Markets
please tell me what a "trigger line" is
glossary FAQ: glossary.
G. P. From Saint Catharines, Canada
08 July, 2009
A moving-average line found in the moving average convergence divergence (MACD) theory, which is used to signal buy or sell points for a security. The trigger line interacts with the two moving averages that form the MACD line and attempts to predict upcoming trends.
The trigger line provides traders with technical insight on when to long or short a stock. A common use of the trigger line is found in crossovers. When the trigger line crosses above the MACD line, a buy signal is sent, indicating that a trader should purchase the stock. Inversely, the trigger falling below the MACD represents a bearish trend, where the trader should short the stock. Visit Forex Trading USA