Risk Reversal Definition.

A risk reversal is an options trading strategy that involves buying and selling options with different strike prices, but with the same expiration date. The strategy is used when the trader believes that the price of the underlying asset will move up or down, but is unsure of which direction it will move. The risk … Read more

Keep Your Accounts Separate with Overlay.

Keep Separate Accounts on the Same Page with Overlays What do you mean by overlays? Overlays are a type of investment strategy where a portfolio manager adds one or more investments to an existing portfolio in order to achieve a specific goal. For example, a portfolio manager may add an overlay to a portfolio in … Read more

Severability Definition.

A severability definition is a statement in a contract or law that defines what will happen if part of the contract or law is found to be invalid. The purpose of a severability definition is to keep the rest of the contract or law in effect even if one part is found to be invalid. … Read more

Understanding Contract Provisions.

A contract is a legally binding agreement between two or more parties. Contracts can be written, oral, or implied by the actions of the parties. Each party to a contract has certain rights and responsibilities. The term “understanding contract provisions” refers to the process of understanding the various clauses and provisions contained in a contract. … Read more