economy
-
Short sellingeconomy 2025. 3. 31. 15:42
Short selliingShort selling is when an investor borrows a sotck, sells it at the current price, and hopes to buy it back later at a lower price to make a profit. It's a way to bet that a stock's price will go down.Example:1. You believe Company X's stock, currently priced at $100, will drop soon.2. you borrow 1 share of Company X from a broker and sell it for $100.3. Later, the stock price drops..
-
Relationship between Exchange rates and interest rateseconomy 2025. 3. 16. 17:54
Relationship between exchange rates and interest rates Alright, imagine this-you and I are planning a trip, and we need to exchange some money. You’ve got US dollars, and we’re heading to Japan, so you need Japanese yen. The exchange rate tells you how much yen you’ll get for each dollar. But did you know that interest rates play a big role in how this exchange rate moves? Let me break it down i..
-
What the base rate and the market rate are?economy 2025. 3. 6. 17:21
Think of the base rate as the "main interest rate" set by a country's central bank(like the Federal Reserve iin the U.S. or the Bank of England in the U.K.). It's like the foundation of all borrowing costs in the economy. Banks use this rate when borrowing money from the central bank, and it influences how much they charge costomers for loans.Now, the market rate is the actual interest rate you ..
-
What's interest rate?economy 2025. 3. 5. 17:29
Think of an interest rate like the price of borrowing money. If you take out a loan, the bank changes you a little extra for lending you that money-that's the interest. If you save money in the bank, they pay you a little extra for keeping it there-that's also interest!Type of interest rates1.Fixed interest rate-Stays the same the whole time. If you get a loan with a fixed rate, you always pay t..
-
What is 'ETF'?economy 2025. 2. 26. 17:15
ETF(Exchange-Traded Fund) is basically a type of inivestment fund that trades on a stock exchange, kinda like a regular stock. But instead of just investing in one company, an ETF holds a bunch of different assets-stocks, bonds, commodities, or even a mix of them. Think of it like a basket of investments that you can buy and sell throughout the day, just like a stock.The cool thing about ETFs is..
-
What is Bitcoin?economy 2025. 2. 25. 16:03
Bitcoin is like internet money - but cooler. It's digital, meaning there are no physical coins or bills. You can send it to anyone, anywhere in the world, without needing a bank.Why is Bitcoin special?1.No banks, No middlemen - You don't need permission from a bank or government to use Bitcoin. It's controlled by everyone(through a network) instead of one company.2.Limited Supply - Unlike regula..