Categories: Formula

Capital to Asset Ratio Bank Formula: An Overview of FX Trading

The Capital to Asset Ratio, or CAR, is a key formula used by banks and forex traders to calculate the financial health of a company or entity. CAR is calculated by dividing the entity’s total capital by its total assets, and is used to measure the entity’s capacity to pay its financial obligations and grow its capital. Banks use this ratio to judge the safety and risk associated with lending funds to a particular entity. For forex traders, CAR helps to identify highly-leveraged opportunities that could result in significant returns on investments.

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Categories: Cash

Cash Out Refinance: Exploring Your Forex Trading Options

A cash-out refinance is a popular financial tool used in Forex, or foreign currency trading. It is when a trader takes a loss on an investment in one currency, and immediately invests the proceeds in another currency. This can be used as a quick way to limit losses, as it hedges the trader against potential losses due to volatility in the foreign exchange market. It also allows traders to take advantage of the liquidity of the market in order to maximize profits.

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