Tracking error is simply the difference between the performance of an index mutual fund and the performance of the index it tries to match. For example, if the index goes up by 5%, but the fund only goes up by 4%, there is a tracking error of 1%. A small tracking error means the fund is do...
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Tracking error in mutual funds is the difference between the returns of a mutual fund and the returns of its benchmark index. It impacts investors by showing how closely the fund is following the index. A low tracking error is better, as it means the fund is doing a good job of copying the...
Tracking error is the difference between the returns of a mutual fund and the returns of its benchmark index. It shows how much a fund's performance has moved away from the index it is supposed to copy. This is mostly used for index funds and ETFs, where the goal is to match the benchmark ...
Trader’s fatigue is the mental and physical exhaustion a person feels after long hours of trading or constantly monitoring the stock market. It leads to poor decisions, lack of focus, and emotional stress. To manage trader’s fatigue, take regular breaks, follow a set routine, avoid overtra...
Trading anxiety is the stress or nervousness you feel while trading in the stock market. It often comes from fear of losing money, market volatility, or overthinking decisions. To manage it, start with a clear trading plan, use proper risk management, avoid emotional trading, and take brea...
Trend-following trading is a strategy where traders buy when prices are going up and sell when prices are going down. It means you follow the market trend instead of guessing the direction. This method is simple, easy to use, and helps traders ride the momentum for profits. It works well i...
Unsystematic risk is the risk that comes from problems in a single company or a particular industry. This risk does not affect the entire market. You can reduce unsystematic risk by investing in different types of companies and sectors. This is called diversification. It spreads your money...
Unsystematic risk means the risk that comes from problems in one company or a single sector. This type of risk does not affect the entire stock market. For example, if one company performs badly due to poor decisions, it only affects that company’s share price. You can reduce this type of ...
Unsystematic risk is the risk that is specific to an individual company or industry. Unlike market risk, which affects the entire market, unsystematic risk arises from factors that impact a particular business or sector. These factors can include management decisions, product failures, or ...
Unsystematic risk refers to the risk that is specific to a particular company or industry. It’s the type of risk that stems from individual company events, such as management decisions, product recalls, or regulatory changes. This risk is not related to the market as a whole, but rather to...
Value at Risk (VaR) is a tool used by investors to estimate the maximum potential loss in the value of their mutual fund investment over a specific time period. It gives a measure of risk and helps investors understand how much they could lose in the worst-case scenario, under normal marke...
Value investing is a strategy where investors seek stocks that are undervalued compared to their true worth. These stocks are priced lower than what the market believes them to be worth, often due to short-term challenges or market misjudgments. Investors expect the stock’s price to rise o...
Value investing is a strategy that involves buying stocks that are undervalued compared to their intrinsic value. The goal is to invest in companies that are trading for less than their actual worth, with the expectation that the market will eventually recognize their true value. Here’s ho...
Value investing and growth investing are two popular strategies in the stock market. Value investing involves buying stocks that are undervalued compared to their true worth, while growth investing focuses on investing in companies with strong potential for future growth. Understanding the...
Value investing is a way of investing in stocks that are selling for less than their actual value. Investors following this strategy believe these stocks will go up in price over time once the market realizes their true worth. This strategy involves buying stocks that might not be popular ...
Value investing is a strategy where investors buy stocks that they believe are undervalued, meaning the market price is lower than the company's true worth. These undervalued stocks are often from companies that are financially stable, have strong fundamentals, and show long-term potential...
Value-at-Risk (VaR) is a risk management tool used to measure the potential loss in the value of an investment over a defined period, given a certain confidence level. In simple terms, VaR estimates the worst possible loss that could occur with a specific probability. In stock investing, i...
**Value at Risk (VaR)** helps investors understand how much money they could potentially lose in a portfolio over a set period of time, under normal market conditions. It is used to measure risk and helps to plan for losses that might occur due to market changes.
What is VaR in Tr...
Vega is a key concept in options trading that measures an option’s sensitivity to changes in implied volatility of the underlying asset. Understanding vega is essential for traders as it helps assess how much the price of an option will change when volatility increases or decreases. The ab...
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