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Risk management is basically trying to get the most return with the least amount of risk. One way to risk manage is to both buy and sell a stock short at the same time. This reduces your risk, but it also reduces your return. More risk equals more return, less risk equals less return. An example of risk management: An investor wants to buy Goldman Sachs at the current price and he is somewhat bullish on the company, but to hedge against losses he also sells short a stock. If he is more bullish on the company, he will buy more shares than sell short.
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∙ 13y ago
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Does commodity and equity stock market affect each other?
Yes. Commodity and equity stock market affects each other.
Which is the most moving share in commodity market?
Equity share is the most moving share in commodity market.
Which is best equity market or commodity market?
If you're an investor, the equities market is best. It's way too easy to lose a lot of money investing in the commodities market. If you're a company that uses a commodity, then the commodities market is best.
What is the difference between commodity market and normal market?
Normal market ( Equity or Stock Market ) deals with trading of company shares , their and their index derivatives , mutual funds and bonds. Commodity market deals with the derivatives of physical commodities ( Metals , Edibles etc )
Which market is more risky Equity or Commodity?
I feel Equity market is more risky the reason is one"s investments will depreciate because of stock market dynamics causing one to lose money . compared to commodity market the money lost here will be more . so of the factors that make the market more risky are tax distortions , market failure expansion and implied volatility .
What is the definition of money market?
The definition of the phrase 'money market' refers to financial markets. This was when money became a commodity to buy and sell products, as well as lending and trading.
In commodity market which segment you have trade for profit?
In commodity market, the segment that you have trade for profit is the commodity segment.
Which is the largest commodity exchange for commodity market?
Oil is that commodity.
What is the definition of 'equity market'?
In relation to stock-exchange, an equity market refers to a public entity through which company shares (or stock) is bought and sold depending on the basic economic principle of supply and demand.
What are the importance of commodity exchange?
Several importances of commodity exchange include a fair relationship between a cash and futures market, leveraging, price risk management, price discovery, and liquidity.
What is a commodity market?
Volatile market
What is an Equity Market?
Equity market is where shares of companies are traded.
