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2024/10/18
FedWatch is a tool developed by the Chicago Mercantile Exchange (CME) to predict the probability of future rate hikes or cuts by the Federal Reserve. It calculates these probabilities based on the prices of "30-day Federal Funds" futures, offering insights into market expectations. The tool provides both short-term and long-term interest rate forecasts and includes the Fed officials’ dot plot to help analyze policy direction. With these features, investors can adjust their strategies in line with market expectations, preparing for potential rate changes in advance.
# Financial Tools
# Beginners Guide
# Financial Lessons
# Macroeconomics
# USA
# Central Bank
# Federal Reserve
Nvidia's 1-for-10 stock split attracted market attention by making the stock more accessible to a broader range of investors. A stock split is a way to restructure a company's shares, adjusting the price per share while altering the total number of shares without changing the company's total market capitalization. Stock splits can be either forward or reverse. Forward splits reduce the share price, increase liquidity, and attract more investors, and reverse splits works vice versa. Although a stock split does not affect the company's intrinsic value, it can influence market psychology and investor behavior.
# Stocks
# Investment
A narrow-based security index refers to an index dominated by a small number of constituent stocks, leading to a higher concentration. According to the U.S. Commodity Futures Trading Commission (CFTC), an index is considered narrow-based if it meets any of the following criteria: it has fewer than 9 constituent stocks, a single stock accounts for more than 30%, or the top 5 stocks together exceed 60% of the total index weight. In contrast, a broad-based index has a larger number of constituents and covers a wider market scope. Recently, due to the rise in TSMC's stock price, the Taiwan Stock Exchange Weighted Index (TAIEX) has been reclassified as a narrow-based index, drawing significant market attention.
2024/9/7
To find the current market price and net asset value (NAV) of an ETF, investors can visit the fund company's official website or the Taiwan Stock Exchange Market Observation Post System. By comparing the NAV of each ETF, investors can determine whether the ETF is currently trading at a discount or a premium.
# Financial Products
# ETFs
The ETF Income Equalization reserve is established to prevent significant fluctuations in fund interest rates due to large capital flows. It is another source of distributions for fund companies aside from capital gains and stock dividends. It essentially returns the money contributed by investors back to them in a different form.
# Taiwan
The net asset value (NAV) of an ETF refers to the total actual value of all the underlying investments, while the market price of an ETF refers to the price at which it is traded by investors in the secondary market. When there is a difference between the NAV and the market price, it may indicate different market expectations regarding the future performance of the ETF.
With the U.S. SEC officially approving the listing of spot Bitcoin ETFs, a significant amount of capital has quickly flowed into the market. Compared to the previous method of holding Bitcoin through derivative financial products, this move can effectively reduce the costs for investors to hold Bitcoin.
# Trading
2023/9/28
Options are a type of financial derivative that combines both "rights" and "obligations." The advantage of options lies in leverage, allowing one to pay only a portion of the premium while obtaining the right to trade in the future. The rights, obligations, profits, and risks of options will vary depending on whether one is the buyer or the seller.
# Options
Foreign exchange (forex) refers to foreign currencies. When we treat foreign currencies as a commodity and trade them with domestic currency at an agreed price (exchange rate), it is called forex trading. Exchange rates in banks can be simply divided into cash rate or spot rate, depending on whether cash transactions are involved.
# Forex
In simple terms, futures are a type of financial contract for trading goods in the future. The buyer and seller agree to trade a specific commodity at a certain price at a certain time. By using futures contracts, both parties can lock in the future transaction price of the commodity, thereby avoiding price volatility risks. Futures contracts can be broadly classified into two categories: commodity futures and financial futures.
# Futures
