What Is the CAPE Ratio? A Comprehensive Investor’s Guide

The formula to calculate the Shiller P/E Ratio is the current price of a stock or index, divided by the 10-year average earnings, adjusted for inflation. It is often applied to leading stock market indices, such as the S&P 500 or individual stocks, as an indicator of potential overvaluation or undervaluation compared to the assumed… Continue reading What Is the CAPE Ratio? A Comprehensive Investor’s Guide

The Differences Between Day & Initial Margin in Futures

So, suppose the equity value falls below the maintenance margin requirement. In that case, the firm issues a margin call to make the investor deposit the amount required to increase the equity value sufficient to meet the maintenance margin. This scenario also adds a point to the initial margin vs. variation margin. Rather, the initial… Continue reading The Differences Between Day & Initial Margin in Futures