What Is Cross Margining? Cross margining is the process of offsetting positions whereby excess margin from a trader’s margin account is transferred to another one of their margin accounts to satisfy maintenance margin requirements. It is allowing the trader to use their available margin balance across all of their accounts. Key Takeaways Cross margining is
What Is a Crossover? The crossover is a point on the trading chart in which a security’s price and a technical indicator line intersect, or when two indicators themselves cross. Crossovers are used to estimate the performance of a financial instrument and to predict coming changes in trend, such as reversals or breakouts. Common examples include the
What Is a Crossover Fund? A crossover fund is an investment fund that holds both public and private equity investments. Crossover funds invest in both publicly traded companies and privately held ones. Key Takeaways A crossover fund is a type of mutual fund that invests in both publicly-traded and privately-held companies.Crossover funds are constructed to
What Is a Crossover Investor? A crossover investor is a public equity market investor who is active in multiple segments of the private investment markets. This investor is involved from the non-public company pre-initial public offering (IPO) stage up to, through, and after the IPO. Crossover investors invest in traditional mutual funds, hedge funds, and family
What Is a Cross-Purchase Agreement? A cross-purchase agreement is a document that allows a company’s partners or other shareholders to purchase the interest or shares of a partner who dies, becomes incapacitated or retires. The mechanism often relies on a life insurance policy in the event of a death to facilitate that exchange of value.
What Is a Cross Rate? A cross rate is a foreign currency exchange transaction between two currencies that are both valued against a third currency. In the foreign currency exchange markets, the U.S. dollar is the currency that is usually used to establish the values of the pair being exchanged. As the base currency, the
What Is a Cross-Sell? To cross-sell is to sell related or complementary products to a customer. Cross-selling is one of the most effective methods of marketing. In the financial services industry, examples of cross-selling include selling different types of investments or products to investors or tax preparation services to retirement planning clients. For instance, if
What Is Crowdfunding? Crowdfunding is the use of small amounts of capital from a large number of individuals to finance a new business venture. Crowdfunding makes use of the easy accessibility of vast networks of people through social media and crowdfunding websites to bring investors and entrepreneurs together, with the potential to increase entrepreneurship by
What Is the Crowding Out Effect? The crowding out effect is an economic theory that argues that rising public sector spending drives down or even eliminates private sector spending. To spend more, the government needs added revenue. It obtains it by raising taxes or by borrowing through the sale of Treasury securities. Higher taxes can
What Is Crowdsourcing? Crowdsourcing involves obtaining work, information, or opinions from a large group of people who submit their data via the Internet, social media, and smartphone apps. People involved in crowdsourcing sometimes work as paid freelancers, while others perform small tasks voluntarily. For example, traffic apps like Waze encourage drivers to self-report accidents and
