What is the Perpetual Futures Funding Rate, and How to Calculate it?

Perpetual Futures Funding Rate in crypto trading showing long and short positions

Perpetual Futures Funding Rate is a fee exchanged between long and short traders, which is paid periodically in future contracts to keep the contract’s price close to the spot price. It helps to keep the price of the asset from drifting away from the actual market price. Types of the Perpetual Futures Funding Rate There … Read more

What Is a Circuit Breaker in Stocks?

Circuit breaker in stocks halting trading during market volatility

In the stock market, Circuit Breakers play an essential role as they assist in preventing panic selling, significant market crashes, and high fluctuation by temporarily halting trade, especially during turbulent times. Recently, in the U.S. stock market, the Circuit Breaker acts as a “safety valve” for the financial system, helping traders pause trading to allow … Read more

Small-Cap Picks: Penny Stocks Under $400M Market Value

Penny Stocks Under $400M

Normal stocks are always a lucrative and popular choice. However, like any financial instrument, they carry with them an array of risks. Queries regarding penny stocks have become increasingly interesting in this New Year. This is especially true as the stock market is navigating the heavy volatility of a holiday-shortened week. It is indeed challenging … Read more

What is a Centralized Cryptocurrency Exchange (CEX)?

Centralized Cryptocurrency Exchange

Centralized cryptocurrency exchanges (CEX) serve as an intermediary for crypto transactions, providing services for buying, selling, and trading both fiat and digital currencies. In simpler terms, it connects users to facilitate the selling, buying, and trading of cryptocurrencies. What makes this digital platform centralized is that there is a company managing it, holding custody of … Read more

Index Funds vs Mutual Funds: A Detailed Comparison for Investors

Index Funds vs Mutual Funds comparison showing key investment differences

Index Funds and Mutual Funds represent two opposing philosophies in wealth building through stock markets. Index Funds aim to grow your investment passively, in proportions that reflect the natural ebb and flow of the market. On the other hand, mutual funds are managed by experts who proactively attempt to outperform the market. The table features … Read more

What is Stock Market Volatility?

What is Stock Market Volatility?

Stock market volatility is the rise and fall of stock prices in the stock market. This can increase or decrease the value of the assets. The volatility relies on several elements. High volatility means the rapid and unpredictable variation in prices. Low volatility is the price difference that occurs very slowly over time. Unlike the … Read more