Duration

duration investment & finance definition
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A measurement of a bond's price sensitivity to changes in interest rates.

Duration has a double-facet view. While a positive duration gap means greater risk, it also means that your payables became due before your receivables, on average.
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Using Duration to Your Advantage
Knowing the duration of a bond, or a portfolio of bonds, gives an investor an advantage in two important ways: ...

Bond duration closed-form formula
FV = par value
C = coupon payment per period (half-year)
i = discount rate per period (half-year)
a = fraction of a period remaining until next coupon payment
m = number of coupon dates until maturity ...

The dollar duration or DV01 is defined as the derivative of the value with respect to yield:
so that it is the product of the modified duration and the price (value):
($ per 1 percentage point change in yield) ...

Modified duration
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DURATION - A measure of the timing of the cash flows (i.e., the interest payments and the principal repayment) to be received from a given fixed income security.

Duration risk
The modified duration of a bond is a measure of its price sensitivity to interest rates movements, based on the average time to maturity of its interest and principal cash flows.

Duration: The symmetrical triangle can extend for a few weeks or many months. If the pattern is less than 3 weeks, it is usually considered a pennant. Typically, the time duration is about 3 months.

Duration: A measure of the sensitivity, or volatility, of fixed income investments to changes in interest rates. The greater the duration of a bond, the more sensitive the bond is to changes in the underlying interest rate.

Duration
A measure of a bond's price sensitivity to changes in interest rates.
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Duration
A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. Duration is expressed as a number of years.

Duration: The measure of the price sensitivity of a fixed-income security to an interest rate change of 100 basis points. Calculation is based on the weighted average of the present values for all cash flows.

Duration: Here you have the option of specifying whether you would like the order to last for just the current day or until cancelled (Good Til' Cancelled).

Duration of Trend
Short term trends are established over a few days. It may be in any direction and has little potential over the long run (except if you're a daytrader).

Duration
The length of time it will take to recoup the principal of the investment, used to measure part of the risk in a bond or bond fund. Duration tells you how long it will take to recoup your principal.

Duration A risk measure for a bond or bond portfolio which indicates its price sensitivity to a percentage change in interest rates. The longer the duration, the more interest-rate sensitive the bond.

Duration - A weighted average of the cash flows for a fixed income instrument, expressed in terms of time.
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Duration
A measure of bond price volatility, it captures both price and reinvestment risks to indicate how a bond will react to different interest rate environments.
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Duration A measure of a bond price's sensitivity to a 100-basis point change in interest rates. A duration of 7 would mean that, given a 100-basis point change up/down in rates, a bond's price would move up/down by 7%.

Duration
A way to measure part of the risk in a bond or bond fund. Duration tells you how long it will take to recoup your principal.

Duration: Duration is a method that is used to measure interest rate risk. It is used by portfolio managers rather than dealers.

Duration: A measure of current maturity of a fixed income security as the weighted average of the time to receipt of the instrument's payments - the weights are the present values of the future payments.

Duration: A calculation measuring the expected life of a fixed income security. It estimates the time required to collect a fixed income security’s payments of the principal and interest.
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Duration
A common gauge of the price sensitivity of an asset or portfolio to a change in interest rates.
Dynamic asset allocation ...

Duration
In simplified terms, a bond's duration measures the effect that each 1% change in interest rates will have on the bond's market value.

Duration: Duration is a measure of the price volatility of a bond. It is equal to the weighted-average term to maturity of the bond's cash flows. The greater the duration of the bond, the greater its price volatility.

Duration: Flags and pennants are short-term patterns that can last from 1 to 12 weeks. There is some debate on the timeframe and some consider 8 weeks to be pushing the limits for a reliable pattern.

Long duration contract An insurance contract that generally is not subject to unilateral changes in its provisions, such as noncancelable or guaranteed renewable contracts, ...

Trend duration
There is a compromise in trend trading. You can get in early and attempt to capture the entire move, or you can wait until the trend proves itself before entering.

Order duration: The time period in which an order remains valid.

Oscillator: Tracks the relationship between two moving averages and can be used as an oscillator and/or a trend indicator.
...

Order duration
The duration for which the order is valid. See Day Order (DO) and Good till Cancelled (GTC) for details.
Other collateral ...

Shorter Duration - products are now sold with durations of three to six months, down from earlier contracts of twelve months.

Duration of Trading Range
The duration of the trading range for which the breakout occurred can provide an indication of the strength of the breakout. The longer the duration of the trading range the more significant the breakout.

Duration: 04:40
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Duration of the Cup and Handle
Rounded Bottoms are long-term relations. Martin J. Pring identifies that the model can occur within about 3 weeks but can also be seen in several years.
Trading Considerations ...

Duration of the entire pattern (i.e. how long the stock trades below the neckline) also plays a role. The longer the stock trades down there, the greater the chance that most of the disgruntled stockholders will have sold when a breakout happens.

Duration measures bond price volatility by calculating the weighted average term-to-maturity of a bond's cash flows, where the weights are the present value of each cash flow as a percentage of the bond's full price.

Duration:
The free practice account is live for 30 days, and then automatically expires.
Description: ...

Duration Referring to a bond or other fixed rate investment: the number of years it would take to receive the present value of future payments, including both interest and principal, from the bond.
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Duration (generic) - The attempt to determine the true maturity, as opposed to final maturity, of a security, by measuring the average time required to collect all payments of principal and interest. See also Macaulay duration and modified duration.

Duration drift
Change in duration attributable to the passage of time.
Duration
A common gauge of the price sensitivity of a fixed income asset or portfolio to a change in interest rates.

The duration of the bonds before maturity will vary from one instance to another.

The duration of the wedge should be a minimum of 20 bars; with fewer than 20 bars, it is considered a pennant.
Breaking out of a rising wedge is generally a bearish signal (figure 4.68).

The duration of a distribution phase is extended enough to allow a sufficient number of high-priced shares (in our example, following a prolonged up-trend) to change hands from one group of mid-term traders to another.

Trade duration.
This paper assumes that the three trade characteristics are independent of each other, except that if a trade is of one type (short, flat, or long), then the next trade has to be of a different type.

Macaulay duration
The weighted-average term to maturity of the cash flows from a bond, where the weights are the present value of the cash flow divided by the price.

VMA Surge Duration - Length of time that a surge in the volume moving average persists.
Chart #2:
Magnitude and duration of a volume moving average (VMA) surge. 1-day period. S&P 500 index. May 5, 2005.

Confused about duration. If I want to short a stock, a short call, at what point do you have to repurchase the stock? Are there choices?
Dinesh ...

Dollar durationThe product of modified duration and the initial price.

accounts receivable turnover The average duration of an account receivable, equal to total credit sales divided by accounts receivable. accredited investor An investor which meets a certain list of Securities and Exchange Commission...

Risk Management: A common way to measure a fixed income portfolio's risk is by its Duration (q.v.) or DV01 (q.v.), and its Convexity (q.v.).

(Very) Long-term Investment Cycles & Trading Ranges     variably 16 to 20 years duration--See chart and explanation Longer-term     (also long-term or near-term--as opposed to short-term) approximately two months to nine months ...

Effective duration The duration calculated using the approximate duration formula for a bond with an embedded option, reflecting the expected change in cash flow caused by the option.

Group purpose and duration will dictate depth of trust required to accomplish task. Mutual trust is essential to complete communication. 3) Complete Communication. Everything expressed is "heard." Everything that needs to be said is stated directly.

The repayment date could be 30 years, 10 years, 5 years, or other duration and they are issued normally in $1,000 increments. They are bought and sold on a secondary market and the price will fluctuate based upon current interest rates.

Before opening a new spread bet, the disciplined trader will have already considered the direction, size and likely duration of the spread trade, as well as the optimum entry price and an exit strategy.

The method used, along with the number of periods used in the calculation, and the periodicity (duration of each period) may be set by the user in the Options Analysis Preferences. (Volatility Computation Details)
Theoretical Value ...

For starters, the duration of the trade is limited by the trading day or the trading session that the transaction takes place in. Traders who engage in day trading are those who are interested in small but quick gains.

Forex trends are also divided into three groups according to their duration - major, intermediate and minor trend. Major forex trends last from one to three years. Intermediate forex trends continue form three weeks to three months.

See also: Market, Trading, Stock, Short, Long