We were delighted to have Susan Hayes of Options Trading Ireland (and The Positive Economist) come by for a chat about options trading, what it is and how it works, in the video Susan uses her trademark ‘no nonsense’ approach to explain options in clear and concise English so that even the likes of Karl can understand it. Well worth watching, if you want to contact Susan you can reach her at either of her websites which are in the links above.
This is an interesting clip about Credit Default Swaps and how they work, CDS’ are something that have been mentioned more and more in the papers and they are are derivatives market product.
Sometimes these words get bandied about like everybody should know what they are about, the truth is not everybody is a finance nerd and getting some simple examples is probably the best way to come to grips with these concepts, enjoy!
Hedge funds, often portrayed as murky operations managing billions upon billions and working offshore with managers earning €100,000,000 a year. The truth is a little different, like in any industry the very top people make exceptional livings doing what they do, the average hedge fund is based around people working hard, and trying to ‘hedge’ their bets, or the bets of their clients.
However, this week at a hearing on the Hill, while being grilled by Congress they agreed that they “see the benefits greater transparency can bring to maintaining stable economies and a healthy global financial system”. It is probably worth talking about hedgefunds and what they do.
The concept is relatively simple, you buy long and short positions. ‘Long’ means that you buy it because its a good stock, or it has good dividend or it is undervalued etc. it is based on the same traditional reason you would buy any stock. ‘Short’ is the reverse, you can buy and sell shares, you can also sell and then buy, …