Glossary
Glossary of Terms
wdt_ID | Term | Definition |
---|---|---|
1 | Blockchain Technology | Blockchain’s name originates from the manner in which it stores exchange information - in blocks that are connected together to shape a chain. It is a peer-to-peer shared, distributed ledger that facilitates the process of recording transactions and tracking assets in a business network. |
2 | Leveraged ETF | Makes use of derivatives and debt to increase the returns of an underlying index. While a standard ETF usually tracks the securities in its underlying index on a 1:1 basis, a leveraged ETF reaches for a 2:1 or 3:1 ratio. |
3 | Leveraged Inverse ETF | Makes use of leverage to make profit when the underlying index is declining in value. Anaphorically, an inverse ETF rises while the underlying index is falling permitting traders to gain from a bearish market or market declines. |
4 | Leveraged Investing | An approach that seeks increased profits by means of borrowed capital. |