Learn RAROC Currency Overlay Albanian Lek

RAROC: Risk adjusted return on capital popularly called as RAROC is a risk management framework. It is used for measuring risk-adjusted financial performance and for providing a consistent view of profitability across businesses (includes strategic business un its(SBU's) and divisions).Induatries in finance business lines like banks,insurance companies use this framework widely. Raroc = risk of adjusted return / economic capital . Authorized FOREX Dealer: Authorized Forex Dealer is any type of financial institution that has received authorization from a relevant regulatory body to act as a dealer involved with the trading of foreign currencies. Dealing with authorized forex dealers ensure that your transactions are being executed in a legal and just way. Currency Overlay: The outsourcing of currency risk management to a specialist firm, known as the overlay manager. This is used in international investment portfolios to separate the management of currency risk from the asset allocation and security selection decisions of the investor's money managers. Albanian Lek: The currency abbreviation symbol for the Albanian lek (plural lekë), the currency for Albania. The Albanian lek is made up of 100 qindarka and is often presented with the symbol "lekë".The Albanian qindarka is no longer issued but is still accepted as currency.In 1992, the new "lek valuta" was introduced, which is equal to 50 lekë Adjusted Cost Base (ACB): Adjusted Cost Base (ACB) is an income tax term that refers to the change in an asset's book value resulting from improvements, new purchases, sales, payouts or other factors. An adjusted cost base can be calculated on a single or a per unit basis. Forex accumulation (or) distribution: Accumulation/Distribution is a momentum indicator that attempts to gauge supply and demand by determining whether investors are generally accumulating (buying) or distributing(selling) a certain stock by identifying divergences between stock price and volume flow. It is calculated using the following formula: Acc/Dist = ((Close – Low) – (High – Close)) / (High – Low) * Period's volume What is forex trading? What is FX market? FOREX stands for Foreign Exchange. Also popularly called as FX market basically deals with trading of currencies.Reports say that on an average about $2.5 trillion to$3trillion worth of FX trades happen. It is 10 to 15 times more than all stocks,futures,option market trades combined together. FX trading which used to be arena of banks,corporations,government until 1990 has become arena of a common trader today. Many retail FOREX broker-dealers provide their online FX (FOREX) trading platform for trading online on a daily basis. In normal futures trading(also called as cross-trading), commodities such as cotton, metals such as gold, silver are traded against currency. In FX trading currencies are traded against currencies. Unlike cross trading there are no clearing houses for FOREX (FX trading).