Understanding a bit about economics and how it plays a part in your investment strategy will go a long way towards growing your wealth over time. Quantitative Easing (or 'QE') is a word that gets thrown around a lot in the financial news, so I've written this post to explain:
I once had a finance lecturer who introduced me to the Options Robot; an easy way of understanding and remembering the four basic types of financial options:
Before I explain what my lecturer was talking about, I'll first give a brief overview of each of the above types of options. Investors use options for hedging and speculating on stocks, foreign exchange, bonds, you name it.
To keep things simple, I’ll describe each type of option using stocks as the underlying asset, but you can generally apply this to most other asset types.