Finance Explained

How stock exchanges match buyers and sellers through the central limit order book (CLOB).

What happens when your leveraged stock position loses value and your broker demands more collateral.

What happens when your short position moves against you and you face potentially unlimited losses.

How the Fed creates money to buy Treasuries, and why it matters who sells.

How hedge funds profit from tiny spreads using massive leverage, and what happens when it unwinds.

How CAPM prices risk and what alpha really means—including Warren Buffett's legendary track record.

P/E, CAPE, Buffett Indicator, and more—how to tell if the market is cheap or expensive.

Delta-hedging a convertible bond to extract profit from volatility—buy low, sell high, mechanically.

Betting against a company's bonds without owning them—the instrument that made "The Big Short" possible.

How correlation affects diversification and why everyone should hold the same risky portfolio.

Kahneman and Tversky's Nobel Prize-winning theory of how people actually make decisions under uncertainty.