Constant Ratio Plan.

A constant ratio plan is an investment strategy in which the investor maintains a constant ratio of investment between two asset classes. For example, an investor may keep a 60/40 split between stocks and bonds. The advantage of this strategy is that it is easy to follow and rebalance. The downside is that it may … Read more

Default Rate Definition.

The default rate definition is the percentage of loans that are in default. A loan is in default when the borrower has failed to make a scheduled payment or has made a late payment. What does it mean when a debt is in default? A debt is in default when the borrower has failed to … Read more

What Is Range-Bound Trading?

Range-bound trading is a trading strategy that seeks to identify and take advantage of price patterns within a defined range. The range can be defined by support and resistance levels, or by using a technical indicator like the Bollinger Bands. The strategy involves looking for price patterns that form within the defined range and then … Read more