What Is a Spot Trade? A spot trade, also known as a spot transaction, refers to the purchase or sale of a foreign currency, financial instrument, or commodity for instant delivery on a specified spot date. Most spot contracts include the physical delivery of the currency, commodity, or instrument; the difference in the price of a future or forward
What Is Investing? Investing, broadly, is putting money to work for a period of time in some sort of project or undertaking to generate positive returns (i.e., profits that exceed the amount of the initial investment). It is the act of allocating resources, usually capital (i.e., money), with the expectation of generating an income, profit,
Why do countries keep gold reserves? Because gold reserves are critical for the economic stability of a country, acting as a reliable store of value, particularly during financial uncertainties. The gold standard was a global practice in the late 1800s and a significant part of the 1900s. In this era, countries backed the value of
The growth of cryptocurrency from speculative investment to a new asset class has prompted governments around the world to explore ways to regulate it. As of January 2024, some governments have created frameworks to provide protection for users, while others bide their time. KEY TAKEAWAYS United States The U.S. announced a new framework in 2022 that opened
What Are Stablecoins? Stablecoins are cryptocurrencies whose value is pegged, or tied, to that of another currency, commodity, or financial instrument. Stablecoins aim to provide an alternative to the high volatility of the most popular cryptocurrencies, including Bitcoin (BTC), which has made crypto investments less suitable for common transactions. KEY TAKEAWAYS Why Are Stablecoins So Important? Though Bitcoin
Crypto fans paid a high price for lessons learned from a dreadful 2022: Decentralized finance, or DeFi, is vulnerable to hacks. A Stablecoin is anything but. And the collapse of a single leading crypto exchange can send shockwaves worldwide. There were some bright spots. Ethereum’s network upgrade saved as much as 99.95% of the energy that it previously consumed.1 And crypto entered many
Stable assets are investments designed to hold their value, or fluctuate minimally, over time. They’re ideal for investors seeking to preserve their capital rather than chase high returns.pen_spark In the ever-changing world of investments, the search for stability can feel like chasing a mirage. However, amidst the whirlwind of volatility, one option has caught the
What Is Monetary Policy? Monetary policy is a set of tools used by a nation’s central bank to control the overall money supply and promote economic growth and employ strategies such as revising interest rates and changing bank reserve requirements. In the United States, the Federal Reserve Bank implements monetary policy through a dual mandate to achieve maximum employment
What Is the Federal Reserve System (FRS)? The Federal Reserve System (FRS) is the central bank of the United States. Often called the Fed, it is arguably the most influential financial institution in the world. It was founded to provide the country with a safe, flexible, and stable monetary and financial system.1 The Fed has a board of seven members
An algorithm is a procedure used for solving a problem or performing a computation. Algorithms act as an exact list of instructions that conduct specified actions step by step in either hardware- or software-based routines. Algorithms are widely used throughout all areas of IT. In mathematics, computer programming and computer science, an algorithm usually refers to a small