Finelo Blog

Options Expected Move Formula: How to Convert IV Into a Price Range

An options expected move is an estimate of the size of a price change implied by current option prices.

Notional Value vs. Market Value: the Key Differences

Notional value measures the size of a position or contract (the “amount of underlying exposure”), while market value is the current price you could buy or sell that position for.

Net Present Value Formula: Its Importance and Application

Net Present Value (NPV) measures whether an investment’s future cash flows, discounted to today’s dollars, exceed its cost.

Naked Short Selling: Definition, Examples & Key Limits

Naked short selling generally refers to selling shares short without borrowing them or arranging a valid locate. In a conventional short sale, the broker-dealer has reasonable grounds to believe the shares can be borrowed and delivered by settlement.

Financial Literacy

Mutual Fund Redemption Fee: Understand Costs, Rules & Examples

A mutual fund redemption fee is a shareholder charge some funds apply when you sell (redeem) shares; it’s intended to discourage short-term trading and recoup costs from frequent redemptions Investor.gov.

Financial Literacy

Mutual Fund Load Fee: Understand Costs, Rules & Examples

A mutual fund load is a sales charge paid when shares are purchased or, in some cases, redeemed; it commonly compensates a broker or other intermediary Schwab.

Modified Internal Rate of Return Formula: Formula, Examples & Interpretation

Modified Internal Rate of Return (MIRR) is a version of IRR that treats financing and reinvestment separately: it converts negative cash flows at a finance rate and positive cash flows to a terminal value at a reinvestment rate, then finds the single rate that links those values across the project life.

Mark Price vs. Last Price: Why Derivatives Platforms Show Both

The last price is the price of the most recent trade on a market. A mark price is a venue-defined reference value used for functions such as unrealized profit and loss, maintenance margin, or liquidation.

Margin Trading Explained: Learn the Concept & Risk Controls

Margin trading means borrowing money from your broker to buy more securities than your own cash could cover, using the investments in your account as collateral.

Maker vs. Taker Fee: Liquidity, Orders, and Execution Costs

A maker order adds displayed or non-displayed liquidity by resting on an order book. A taker order removes liquidity by executing against a resting order.

Chart Analysis

Liquidity Sweep Trading: Learn the Concept & Risk Controls

A liquidity sweep is a sharp price move through an obvious level, a recent swing high or swing low, that triggers the cluster of stop-loss and pending orders sitting just beyond it, and then reverses.

Liquidity in Trading: Learn the Concept & Risk Controls

Liquidity in trading is how easily an asset can be bought or sold quickly without significantly moving its price.