Capital

Private Equity vs Venture Capital: A Comparison for Forex Traders

5 min read

Private Equity and Venture Capital are both forms of investing that involve the purchase of an ownership interest in a company. Private Equity involves the buying of a company’s equity with the intention of increasing its value and then eventually selling it for a higher price. Venture Capital involves investing in the earliest stages of a company and can involve providing liquidity for a start-up or providing a stake in a business for future investors. Unlike Private Equity, Venture Capital typically requires a high rate of return for investors. The main differences between Private Equity and Venture Capital are the types of companies they invest in, the amount of money invested, and the expected rate of return.

Capital

What Is Capital Structure: A Guide to Forex Trading

5 min read

Capital structure in the forex market refers to the different sources of funds used by a forex broker to finance its operations. These sources can include short-term borrowed funds, such as short-term loans, as well as capital from shareholders, which is considered the primary source of funding for a forex broker. This capital structure allows the forex broker to use the different capital sources to meet its liquidity needs and provide services to their customers. By having a diverse capital structure, a forex broker can also ensure that it is better able to weather market volatility, and maintain liquidity and capital adequacy even during periods of market distress.