Cyber*School

Price movement in a graph whose history looks like the letter V. Technical analysts, it is usually referred to as a positive indicator.

value at risk (VAR) is a statistical risk measure which is used extensively for measuring the market risk of portfolios of assets and/or liabilities.Value at risk is defined as follows: The amount of money such that a portfolio is expected to lose less than that amount of money 99 days out of 100. The above definition is for 1-day value at risk measured at the 99% confidence level.

In the value range of banking, the composition of the success rate of the bank is determined.

A stock mutual fund that primarily holds stocks that are deemed to be undervalued in price and that are likely to pay dividends. The premise of value investing is that the market has inherent inefficiencies that enable companies to trade at levels below what they are actually worth. In theory, once the market corrects these inefficiencies, the value investor will see the share price rise. Value funds are one of three main mutual fund types; the other two are growth and blend (a mix of value and growth stocks) funds.

see value at risk

The interest rate is periodically adjusted to current interest rates.

In the variable quotation, prices change constantly during a trading day.

A tender procedure whereby the counterparties bid both the amount of money they want to transact with the central bank and the interest rate at which they want to enter into the transaction. When making the allocation the bids with the higher interest rates are handled with priority until completion of the procedure proposed by the Central Bank total amount reached. The allocation can be done either by the Dutch method defined at the lowest interest rate level accepted (also called marginal rate) or after the American method to the individual bid rates. Contrary to variable rate tender: fixed rate tender

The yield is dependent on the amount of generated profit for the company.

statistical method to calculate value at risk (var) The variance/covariance method employs historical volatilities and correlations between the risk categories. Due to the fact that only the linear relation between a price change and the change of the value of the portfolio is considered, it is not possible to show the risk of options precisely. Other methods: monte carlo simulation and historical simulation

daily settlement of profits or losses, Thus it is guaranteed that there is no under- resp. over-securitisation of an open position.

risk factor of options, also called kappa expresses how much the price of an option changes if volatility increases by one percentage point e.g.: call EURUSD, premium 3.50 USD Ct, vega 0.25 meaning: if volatility increases by one percentage point (e.g. from 11% to 12%) the price of the option changes from 3.50 USD Ct to 3.75 USD Ct

(Venture Capital) equity capital that unlike a loan does not depend on collateral, but rather from the estimated return potential of the financed company.

see price spread

abbr. Volatility

measure of uncertainty for a random variable such as stock prices, FX-rates, interest rates etc. Volatility is similar to the statistical term standard deviation.

This is a protective mechanism to increase price continuity in both during the auction and during the continuous trading. A volatility interruption is triggered if the potential execution price of an order is outside the static price range or the dynamic price range.

The right of shareholders in the Annual General Meeting to vote for or against applications submitted. A share is usually a right to vote, but there are also non-voting preferred shares.