Hedge (finance)A hedge is an investment position intended to offset potential losses or gains that may be incurred by a companion investment. A hedge can be constructed from many types of financial instruments, including stocks, exchange-traded funds, insurance, forward contracts, swaps, options, gambles, many types of over-the-counter and derivative products, and futures contracts.
Hedge fundA hedge fund is a pooled investment fund that trades in relatively liquid assets and is able to make extensive use of more complex trading, portfolio-construction, and risk management techniques in an attempt to improve performance, such as short selling, leverage, and derivatives. Financial regulators generally restrict hedge fund marketing to institutional investors, high net worth individuals, and accredited investors. Hedge funds are considered alternative investments.
Fuel price risk managementFuel price risk management, a specialization of both financial risk management and oil price analysis and similar to conventional risk management practice, is a continual cyclic process that includes risk assessment, risk decision making and the implementation of risk controls. It focuses primarily on when and how an organization can best hedge against exposure to fuel price volatility. It is generally referred to as "bunker hedging" in marine and shipping contexts and "fuel hedging" in aviation and trucking contexts.
Foreign exchange riskForeign exchange risk (also known as FX risk, exchange rate risk or currency risk) is a financial risk that exists when a financial transaction is denominated in a currency other than the domestic currency of the company. The exchange risk arises when there is a risk of an unfavourable change in exchange rate between the domestic currency and the denominated currency before the date when the transaction is completed. Foreign exchange risk also exists when the foreign subsidiary of a firm maintains financial statements in a currency other than the domestic currency of the consolidated entity.
Step responseThe step response of a system in a given initial state consists of the time evolution of its outputs when its control inputs are Heaviside step functions. In electronic engineering and control theory, step response is the time behaviour of the outputs of a general system when its inputs change from zero to one in a very short time. The concept can be extended to the abstract mathematical notion of a dynamical system using an evolution parameter.
Rise timeIn electronics, when describing a voltage or current step function, rise time is the time taken by a signal to change from a specified low value to a specified high value. These values may be expressed as ratios or, equivalently, as percentages with respect to a given reference value. In analog electronics and digital electronics, these percentages are commonly the 10% and 90% (or equivalently 0.1 and 0.9) of the output step height: however, other values are commonly used.
Interrupt latencyIn computing, interrupt latency refers to the delay between the start of an Interrupt Request (IRQ) and the start of the respective Interrupt Service Routine (ISR). For many operating systems, devices are serviced as soon as the device's interrupt handler is executed. Interrupt latency may be affected by microprocessor design, interrupt controllers, interrupt masking, and the operating system's (OS) interrupt handling methods. There is usually a trade-off between interrupt latency, throughput, and processor utilization.
Client–server modelThe client–server model is a distributed application structure that partitions tasks or workloads between the providers of a resource or service, called servers, and service requesters, called clients. Often clients and servers communicate over a computer network on separate hardware, but both client and server may reside in the same system. A server host runs one or more server programs, which share their resources with clients. A client usually does not share any of its resources, but it requests content or service from a server.
Cloud computingCloud computing is the on-demand availability of computer system resources, especially data storage (cloud storage) and computing power, without direct active management by the user. Large clouds often have functions distributed over multiple locations, each of which is a data center. Cloud computing relies on sharing of resources to achieve coherence and typically uses a pay-as-you-go model, which can help in reducing capital expenses but may also lead to unexpected operating expenses for users.
Time constantIn physics and engineering, the time constant, usually denoted by the Greek letter τ (tau), is the parameter characterizing the response to a step input of a first-order, linear time-invariant (LTI) system. The time constant is the main characteristic unit of a first-order LTI system. In the time domain, the usual choice to explore the time response is through the step response to a step input, or the impulse response to a Dirac delta function input.
Upper and lower boundsIn mathematics, particularly in order theory, an upper bound or majorant of a subset S of some preordered set (K, ≤) is an element of K that is greater than or equal to every element of S. Dually, a lower bound or minorant of S is defined to be an element of K that is less than or equal to every element of S. A set with an upper (respectively, lower) bound is said to be bounded from above or majorized (respectively bounded from below or minorized) by that bound.
Dynamic web pageA dynamic web page is a web page constructed at runtime (during software execution), as opposed to a static web page, delivered as it is stored. A server-side dynamic web page is a web page whose construction is controlled by an application server processing server-side scripts. In server-side scripting, parameters determine how the assembly of every new web page proceeds, and including the setting up of more client-side processing. A client-side dynamic web page processes the web page using JavaScript running in the browser as it loads.
Settling timeIn control theory the settling time of a dynamical system such as an amplifier or other output device is the time elapsed from the application of an ideal instantaneous step input to the time at which the amplifier output has entered and remained within a specified error band. Settling time includes a propagation delay, plus the time required for the output to slew to the vicinity of the final value, recover from the overload condition associated with slew, and finally settle to within the specified error.
Linux kernelThe Linux kernel is a free and open-source, monolithic, modular, multitasking, Unix-like operating system kernel. It was originally written in 1991 by Linus Torvalds for his i386-based PC, and it was soon adopted as the kernel for the GNU operating system, which was written to be a free (libre) replacement for Unix. Linux is provided under the GNU General Public License version 2 only, but it contains files under other compatible licenses.
Web serverA web server is computer software and underlying hardware that accepts requests via HTTP (the network protocol created to distribute web content) or its secure variant HTTPS. A user agent, commonly a web browser or web crawler, initiates communication by making a request for a web page or other resource using HTTP, and the server responds with the content of that resource or an error message. A web server can also accept and store resources sent from the user agent if configured to do so.
HTTPThe Hypertext Transfer Protocol (HTTP) is an application layer protocol in the Internet protocol suite model for distributed, collaborative, hypermedia information systems. HTTP is the foundation of data communication for the World Wide Web, where hypertext documents include hyperlinks to other resources that the user can easily access, for example by a mouse click or by tapping the screen in a web browser. Development of HTTP was initiated by Tim Berners-Lee at CERN in 1989 and summarized in a simple document describing the behavior of a client and a server using the first HTTP version, named 0.
InterestIn finance and economics, interest is payment from a borrower or deposit-taking financial institution to a lender or depositor of an amount above repayment of the principal sum (that is, the amount borrowed), at a particular rate. It is distinct from a fee which the borrower may pay to the lender or some third party. It is also distinct from dividend which is paid by a company to its shareholders (owners) from its profit or reserve, but not at a particular rate decided beforehand, rather on a pro rata basis as a share in the reward gained by risk taking entrepreneurs when the revenue earned exceeds the total costs.
Bounded setIn mathematical analysis and related areas of mathematics, a set is called bounded if it is, in a certain sense, of finite measure. Conversely, a set which is not bounded is called unbounded. The word "bounded" makes no sense in a general topological space without a corresponding metric. Boundary is a distinct concept: for example, a circle in isolation is a boundaryless bounded set, while the half plane is unbounded yet has a boundary. A bounded set is not necessarily a closed set and vice versa.
Essential infimum and essential supremumIn mathematics, the concepts of essential infimum and essential supremum are related to the notions of infimum and supremum, but adapted to measure theory and functional analysis, where one often deals with statements that are not valid for all elements in a set, but rather almost everywhere, that is, except on a set of measure zero. While the exact definition is not immediately straightforward, intuitively the essential supremum of a function is the smallest value that is greater than or equal to the function values everywhere while ignoring what the function does at a set of points of measure zero.
Compound interestCompound interest is the addition of interest to the principal sum of a loan or deposit, or in other words, interest on principal plus interest. It is the result of reinvesting interest, or adding it to the loaned capital rather than paying it out, or requiring payment from borrower, so that interest in the next period is then earned on the principal sum plus previously accumulated interest. Compound interest is standard in finance and economics.
