Everyday when you watch TV for Financial news you specially hear couple of terms very frequently aka Fundamental and Technical analysis and today I would try to explain them in very newbie’s terminology for every one to refer to.
Derivative Trading
Hedgers aim to profit from the very price change that hedgers are protecting themselves against. Hedgers want to minimize their risk no matter what they’re investing in, while speculators want to increase their risk and therefore maximize their profits.
DCF to calculate fair value of share price
The discounted cash flow (or DCF) approach describes a method of valuing a project, company, or financial asset using the concepts of the time value of money. All future cash flows are estimated and discounted to give them a present value.
