Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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Yields
An anticipated return-on-investment (ROI).
YOY
YOY, short for year over year, compares a result with the same period one year earlier. It is commonly used for revenue, profit, inflation, employment, and trading volume because it reduces the distortion created by seasonal changes.
A retailer may report fourth-quarter revenue of $108 million, up from $100 million in the same quarter last year. That is 8% YOY growth. Comparing the figure with the third quarter could produce a very different result simply because holiday demand changes the pattern.
YOY gives a clean annual comparison. Analysts often place it beside monthly or quarterly figures to see both the longer trend and the more recent movement.
Yuan
The yuan is the main unit of China’s official currency, the renminbi. The names are often used as if they mean exactly the same thing, but the distinction is similar to sterling and the pound: renminbi is the currency, while yuan is the amount being counted.
CNY usually refers to yuan traded in mainland China, while CNH is used for offshore trading. Their rates can differ because the two markets operate under different controls and liquidity conditions.
If USD/CNY rises from 7.10 to 7.20, one dollar now buys more yuan. The yuan has weakened against the dollar. Currency pairs often become clearer once the base currency is identified first.
Zambian Kwacha (ZMW)
You will find the Zambian kwacha abbreviated as ZMW. As the name indicates, ZMW refers to Zambia’s official currency. Issued by the Bank of Zambia, the Zambian kwacha is divided into 100 ngwee.
The name is derived from the word “dawn.” “A new dawn of freedom” is a nationalist phrase that presented Zambia’s independence from British rule in 1964 as the start of a new era. Four years later, in 1968, the kwacha replaced the Zambian pound, and the new name helped separate the country’s money from its colonial past.
If USD/ZMW rises from 25 to 27, one US dollar buys more kwacha, meaning the kwacha has weakened against the dollar.
ZAR
The currency code for the South African rand.
Zero Coupon Bond
To fully understand what a zero-coupon bond means, let’s break it down.
A bond is a type of loan. When you buy one, you are lending money to a government or company. In return, the issuer normally pays you interest and gives back the original amount on a fixed date.
The regular interest payment is called a coupon. A zero-coupon bond does not make these payments. Instead, it is sold for less than the amount you will receive when the bond ends.
For example, you may buy the bond for $700 and receive $1,000 at maturity, which is the repayment date. The $300 difference is your return before taxes or costs. So, zero coupon means no regular interest payments, not zero return.
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