Structured Finance

Leverage and Margin in Cfds: Opportunities and Risks
Structured Finance

Leverage and Margin in Cfds: Opportunities and Risks

- by Michael Widianto

Leverage and margin play a crucial role in the world of CFD trading, and as a trader, it is essential to have a thorough understanding of these terms. CFD trading, also known as Contract for Difference trading, allows traders to wager price movements without ownership of the underlying asset. This type of trading has gained popularity in Singapore due to its flexibility and potential for high returns. However, with the potential for high profits also comes an increased risk of losses. That’s where leverage and margin come into play.

In CFD trading, leverage is a powerful tool that allows traders to open positions significantly more significant than their account balance. It magnifies the size of your trade, giving you exposure to more substantial price movements than what your capital would otherwise allow. On the other hand, margin is the amount of money required to open a leveraged position. It acts as collateral and ensures that you have enough funds to cover any potential losses. This article will discuss some essential considerations traders should make when using leverage and margin in CFD trading.

Understand the risks involved

While leverage and margin can significantly increase your profits, they also come with a higher risk of losses. Therefore, it is crucial to have a thorough understanding of the risks involved before using these tools in CFD trading. As a trader, you must be aware that the use of leverage amplifies both gains and losses, and market movements can quickly wipe out your entire capital if the trade moves against you.

It is essential to have a risk management strategy in place to mitigate these risks, which includes setting stop-loss orders and limiting your leverage ratio. Avoid using more than 5% of your account balance as a margin, especially when starting with CFD trading …

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Structured Finance Companies
Structured Finance

Structured Finance Companies

- by Michael Widianto

A structured finance company is a financial institution that has a large number of assets that are invested in a variety of different types of securities. It can include debt and equity, and it can also include other asset classes such as real estate and commodities. Many companies that offer these products have experienced substantial growth in the past few years, and are expected to maintain that growth in the future. These companies offer structured finance to businesses and consumers in a wide range of industries, including retail, pharmaceuticals, and consumer electronics.

Baker Tilly

The banking and capital markets industry is no stranger to innovation, whether it be in the form of new regulations, emerging technologies or new business models. One firm that stands out is Baker Tilly. Not only does it boast a large number of industry experts, but it also provides clients with a suite of complementary services. A good example is its real estate offerings, which include the likes of its predecessor the Suburban Group.

Baker Tilly boasts a robust array of products and services that are designed to help its clients navigate a landscape that is ever-changing. From venture capital to corporate and real estate finance, the firm is an expert in helping its clients leverage their assets to achieve their goals. For instance, it has been named the top investment banking firm in Philadelphia according to the city’s own bizjournal. The firm is also among the industry’s leaders in merger and acquisition advisory, capital sourcing, financial advisory, and strategic planning.

Wells Fargo

Wells Fargo is a structured finance company that provides mortgages, loans, investments, insurance and other financial services. The company provides its clients with perspectives on how to succeed in today’s challenging markets. For example, the bank’s structured finance team has extensive experience in …

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Structured Finance Products
Structured Finance

Structured Finance Products

- by Michael Widianto

Structured finance products are a variety of different investments that are used to provide investors with the opportunity to earn income through interest. Some of these investments include mortgage-backed securities, credit default swaps, ETNs, covered mortgage bonds and more.

Mortgage-backed securities

Mortgage-backed securities are structured finance products that represent claims on cash flows from a pool of mortgage loans. They are typically bought and sold on the secondary market. Typical buyers of MBS include investors, corporations, and individuals.

The price of MBS varies depending on prepayment assumptions. These are based on a variety of factors, such as the interest rate, the credit rating, the location of the properties involved, and the economic environment.

If a homeowner does not repay his or her loan, the mortgage-backed security will lose money. But if the borrower is able to repay the mortgage, the investor gains from the payments.

There are two primary types of MBS. The first is pass-through. These are structured as trusts and are taxed under grantor trust rules. Typically, pass-throughs have maturities of five to thirty years.

The second is a more complicated type of mortgage-backed security called a collateralized mortgage obligation. This is a pool of mortgages organized into separate tranches, each with a different maturity.

Covered mortgage bonds

Covered mortgage bonds are structured finance products that are often regarded as high-quality investments. They are typically rated investment grade and offer higher yields than many debt instruments. They also provide some protections that may make them more appealing for investors.

These investments are issued by banks, depositary institutions and other regulated financial entities. Generally, they have a maturity of three to seven years. Typically, they have an investment grade rating and draw from a pool of collateral. This pool is known as the cover pool.

The cover pool usually …

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Essential Estate Planning Documents
Structured Finance

Essential Estate Planning Documents

- by Michael Widianto

Estate planning documents: these are the basic kinds of documents many people are unwilling to get started on, but doing so is an incredibly worthwhile investment of energy. While estate planning can be an uncomfortable topic for many, being aware of what you need may be the 1st step in getting yourself ready for your estate. Following is often a brief self-help guide to getting started. If you don’t want to be involved in any legality yourself, it is better to hire a real estate company which can help you in rental of your property or estate, it is better to check for Letting Agents Edinburgh, they are best in real estate business with full documentation.

A will

Everyone needs to get a will. It describes how and where your assets will likely be distributed after you die. If you don’t have a will, it can be costly to your heirs and could lead to further problems because it’s unclear where (also to whom) you intended your assets to go. It’s also critical if you have young kids since it lets you designate guardianship.

A trust

While trusts aren’t for all, they’re worth taking into consideration. They establish legal boundaries around how your estate will be distributed. Trusts also alleviate inheritance taxes for the heirs and offer buffers against lawsuits and creditors.

A living will

Also known as a loan medical directive, a full-time income will is an approach to you could make your medical wishes known in case you become terminally ill or can not communicate.

Power of attorney

This document provides man or woman who you designate the electricity to create decisions on your behalf in the event you’re unable to make estate decisions. This may include signing checks, making medical decisions, or transferring real estate property.…

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Angel Investor Vs. Venture Capital Database - What Are The Main Differences?
Structured Finance

Angel Investor Vs. Venture Capital Database – What Are The Main Differences?

- by Michael Widianto

In this article I compare Angel Investor vs. Venture Capital Databases to identify the main differences?  Of course, the primary difference is the investors in each database; i.e. the angel investor database includes angel investors while the venture capital database includes venture capital firms.  So, then you may be wondering “What is the difference between a VC firm and an angel investor?”

Angel Investor Vs. Venture Capital Database - What Are The Main Differences?
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The main differences between angels and venture capitalists are as follows:

Investment Size: The size of investments differ by investor, but most often an angel will commit a much smaller amount of capital to a small business or entrepreneur than a venture capital firm would.  This is true for a number of reasons including: the stage of the business, investable income, risk and structure of the investor and/or fund.

What is the stage of the business?:  This is a very important consideration, because angels typically invest in small businesses at the really early stages of the firm.  This requires a lot deal of risk which lowers the investors’ capital commitment.  (Would you place a larger bet on something with a 70% of success or with a 30-50% chance?)  But that’s often not a big obstacle to the small business because in the first year or so of operation, the business needs less money from outside investors.  But when the company has matured and proven it has the management team or the business idea that could develop into a bigger and more lucrative business, a venture capitalist might step in.

Structure of the fund:  An angel investor is usually a retired business professional or current business professional who was successful enough in his or her career to have a store of capital for investment in businesses like yours.  A venture capitalist though is a professional investor that …

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