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Articles on Trending Technologies
Technical articles with clear explanations and examples
What is option contract?
Options contract is the contract between parties in which, a buyer has the right to sell or buy a particular asset at future date on agreed price. These types of contract are used in securities, commodities etc.In this, buyer will look at ask price and if he wants to buy into option contract, he will offer the bid price (which is lower than bid price). After the contract is purchased from the seller, a position is opened and seller is paid to buy an asset on strike price. Buyer has to sell, buy or exercise the contract before an expiry ...
Read MoreWhat are swap curves?
Swap curve is the relationship between swap rates and varying maturities. This curve tells about the expected returns at different maturity dates. It is a two dimensional curve in which, Y-axis represents the swap rates and X-axis represents maturity dates.These curves are calibrated and constructed in segments depends on market prices of different fixed income. The short end (not more than 3 months) swap curve is calibrated to unsecured deposit rates. Middle end (in between 3 months to 2 years) is derived in combination of interest rate futures and forward rate agreement contracts.Long term (more than or equal to 10 ...
Read MoreDifference between deflation and disinflation?
DeflationIt is decline in goods/services price when rate of inflation falls below zero percentage. It is linked to unemployment and productivity levels of goods/services are low. Deflation acts as economy indicator for deteriorating conditions.Causes of deflation are as follows −Structural changes (capital markets)Productivity increasedWhen decrease in currency supplyEffects of deflation are −Reduces business revenueLow wagesLayoffsDisinflationIt is nothing but decrease in rate of inflation or price inflation is slowing. It is a point where inflation increases at slower rates. Money supply slows down because of tighter monetary policy is cause of disinflation. Disinflation is not always a negative. It can be ...
Read MoreHow to Compare interest rate and inflation?
Interest rateIt is either the cost of money borrowed or reward for saving the money. Generally, interest rates are calculated in terms of percentages. Public borrow money from banks in the form of loans. Banks borrows money from public in form of deposits and pays interest for money deposits. Interest rates can beFixed interest rates: charges are fixed throughout the loan lifeVariable interest rates: charges changes with prime rateIncrease in interest rates results in the following −Decrease in inflation.Decrease in circulation of money in market.Expense borrowing.Decrease in demand of goods and services.Price of goods and services will decrease.Decrease of interest ...
Read MoreWhat is the difference between floating currency and fixed currency?
Let us first see what floating currency is and fixed currency −Floating currencyA floating currency is a monetary system that is not backed by gold or assets. Based on supply and market expectations value of the currency fluctuates. The value of a currency is determined by the level of foreign reserves and global demand.If the currency has demand, then the value of currency appreciates and impacts country’s exports (lower the demand for exported goods). To attract consumers, an exporter has to low their prices which decreases their profits and faces risk of going out of business.If the currency demand is ...
Read MoreWhat is fixed for floating and fixed to fixed swaps?
The fixed for floating and fixed to fixed swaps are explained below −Fixed for floating swapFixed for floating swap is an agreement between the parties, which involves swapping of fixed rate loan (cash flow interest) of one party to floating rate loans of other party. A company goes for fixed for floating swaps to reduce interest expenses and for match assets and liabilities that are more sensitive to floating interest rates.Reasons to go for fixed for the floating swap are as follows −Reduces interest rates.Diversifies risk.Performs financial hedges (expecting decreasing of interest rates).Match between assets and liabilities, which are sensitive ...
Read MoreWhat is the difference between skimming and scanning reading skills?
Reading is often treated as a leisure activity but very few people know that it is actually a technique. Skimming and scanning are the two often confused techniques for reading or to be specific reading strategies.SkimmingSkimming often refers to the way in which one reads at a faster rate to gain the general idea about the text without paying heed to the intentional and detailed meaning of the text.For Example - When one reads the text only in order to understand the thesis statement, in one or two lines.Skimming is achieved by reading that text only which is considered to be ...
Read MoreWhat is the meaning of the phrase 'the use of the right vocabulary' for a writing task?
How many times does it happen when we read a text we are able to relate to? We want to read more and more of it. Simply because things get into our head with so much ease and so much simplicity.But sometimes, exactly opposite to this happens. We fall in a situation, wherein we do not know as to what is wrong with the text, but we try hard to pick it up, and again get either bored of it or feel confused because of extreme verbosity used by the author in the text.All this happens due to the interplay ...
Read MoreSpeed Time Curve of Electrical Traction System
What is a Speed-Time Curve?Speed-time curves are the most convenient means of studying the movement of trains and their energy consumption. A speed-time curve is defined as the graph plotted between the speed and time, by taking speed (in km/hour) on the Y-axis and time (in seconds or minutes) on X-axis. The speed-time curve provides complete information of the motion of the train.The speed-time curve gives the speed of the train at various time instants after the start of the run directly. The slope of the curve at any point gives the acceleration at the corresponding instant or speed.The area ...
Read MoreElectric Traction: Power Output and Energy Output at Driving Axles
Power Output from the Driving AxlesLet, 𝐹𝑡 = Tractive effort in Newton𝑉 = Speed of the train in kmphSince, the power output is defined as the work done per unit time, i.e., $$\mathrm{Power\: output, \mathit{P}\mathrm{\: =\: }Rate\: of \: work\: done\mathrm{\: =\: }\frac{Work \: done}{time}}$$$$\mathrm{\Rightarrow \mathit{P}\mathrm{\: =\: }\frac{Tractive\: effort\times Distance}{Time}\mathrm{\: =\: }Tractive\: effort\times Speed}$$$$\mathrm{\therefore \mathit{P\mathrm{\: =\: }F_{t}\times V}\: Nm/s}$$$$\mathrm{\Rightarrow \mathit{P\mathrm{\: =\: }F_{t}\times V}\times \frac{1000}{3600}\, Watts}$$$$\mathrm{\therefore \mathit{P\mathrm{\: =\: }\frac{F_{t}\times V}{\mathrm{3600}}}\: kW\: \cdot \cdot \cdot \left ( 1 \right )}$$Now, if 𝜼 is the efficiency of gear transmission, then the power output of motor (or power input to driving axles) is given ...
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