Floating Interest Rate
Definition of Floating Interest Rate
Personal loans and home loans are typical examples of borrowing that carry a floating interest rate. A point to note here: the floating interest rate is added on top of a base interest rate that is charged by lenders.
Related Terms
Forex Futures Trading
- Forex pair: the currency you will buy in exchange of the other at the end of the futures contract
- Lot size: the value of the currency included in the contract
- Contract price: the price at which the futures contract is trading
- Spot price: the latest forex rate for the currency pair, different from the contract price
- Margin: the amount of money you’re required to deposit with your currency trading platform
- Tick size: the minimum amount by which a forex futures contract can move, which is Rs. 0.0025 in India
- Expiration date: the preagreed day on which the contract must be excercised or squared off
Positional Trading
Basing
As a result, the security forms a “base” or flat pattern which means there is little to no upward or downward movement and a decline in volatility.
This may go on for a relatively long time but is crucial as basing is an indicator of any meaningful reversal that may happen.
Listing Date
Book To Bill Ratio
Book to Bill ratio: Total worth of new orders received / Total worth of orders billed
Book to Bill ratio helps companies understand the demand and supply for their goods or services. A Book to Bill ratio of more than 1 means that there’s more demand and less supply.
Whereas, a Book to Bill ratio of less than 1 means that there’s less demand and more supply. Using these indicators, the company can work on increasing or limiting production.

