If you currently work in the finance industry, or have aspirations of doing so, chances are you have heard of a Bloomberg terminal. This article will introduce you to one of the industry's most widely used sources for real-time financial information, and some of the functions the Bloomberg terminal is able to carry out. Design and Layout The Bloomberg terminal, from the perspective of the end-user, is a Windows-based application, making it compatible with the popular Excel program, a very important aspect of the system for those in the finance industry.

Bloomberg also offers users access to the application online and through mobile devices, via its Bloomberg Anywhere service. For portfolio managers and brokers , having the ability to access real-time market information from almost anywhere in the world, is an incredibly convenient and important advantage of a Bloomberg subscription.

For related, see Day Trading Strategies For Beginners. The first thing most people notice when they sit down in front of a Bloomberg terminal, is the keyboard. Although it is similar to a standard desktop keyboard, Bloomberg terminals substitute the function keys on a standard keyboard i.

Additionally, Bloomberg keyboards incorporate color coding to make use more intuitive, with market sectors colored yellow, the Cancel and Log-in keys colored red, and the common "Go" keys i.

News Although most people think about real-time financial market data, namely security values, when discussing Bloomberg, the Bloomberg terminal also offers real-time news updates from a multitude of websites, tickers and wires. By simply typing "NEWS" in the search bar, a user will be provided with the most recent financial, and non-financial, news headlines from around the world. Additionally, users can access media outlet websites, such as the New York Times.

Bloomberg users can also search for archived news stories or search by subject. Equities When searching for publicly traded equity shares, Bloomberg allows users to search by name, exchange, country and other such topics.

Additionally, the equity menu allows users to view historical pricing on a stock see image below , read a description of the business, view any outstanding corporate debt the company may have, and view analyst reports and estimates for the stock, along with dozens of other features.

Bloomberg also allows clients to compare and contrast equities side by side, offering a comparative analysis of any two equities. Comparison fields include fundamental analysis , historical ratios and technical charting. In addition to comparative functionality, Bloomberg also includes screeners, allowing clients to screen for stocks using a multitude of metrics.

After running a screen, users can also filter results and create custom equity sets, which allow for a quick reference of real-time results for a portfolio of equities; very handy for traders , brokers and other such financial professionals.

Fixed Income Much like with equities, Bloomberg allows users to search for real-time data on fixed income securities. This includes corporate debt, municipal bonds and government bonds. Similar to the historical price screen for equities, we are able to view historical day-over-day changes in security values, along with implied yield-to-maturities, for any given day. Additionally, credit ratings and cost of capital information is available for fixed income securities.

Trade Order Management Solutions (TOMS) | Bloomberg Professional Services

Exposure to different asset classes is required to generate income, reduce risk and beat inflation. For more, see How To Create A Modern Fixed-Income Portfolio. Derivatives One of Bloomberg's best features is its derivatives capabilities. Not only can clients find real-time values for securities, such as exchange traded options, and futures contracts , such as the active contract for WTI, but Bloomberg also allows users to value hard-to-price derivatives.

For OTC options, for example, Bloomberg lets users customize their option valuation models , to come up with an estimated value. Once priced, users can view the values of the Greeks associated with the option in question, to verify that their price estimate is in line with those expectations.

Another function popular with large banks and institutional investors , is the Swap Manager tool. Swap Manager is a highly customizable swap pricing utility, which allows users to input the parameters of a swap agreement and come up with an estimate for the value of that swap, at any given date in time see image below.

Additionally, clients can view underlying swap curves to determine that the underlying inputs match expected values. As the swap market continues to grow, the Swap Manager tool will no doubt gain more and more popularity with analysts.

Find out what makes currency swaps unique and slightly more complicated than other types of swaps.

For more, see Currency Swap Basics. Foreign Exchange With the FX market being a hour marketplace, Bloomberg is the ideal tool for FX participants.

Buy Side Trader | Bloomberg Professional Services

Users can view real-time rates for dozens of currencies, along with basis curves for most pairs, and rate information for a given currency. Additionally, with Bloomberg's ability to capture real-time news and economic updates, its FX capabilities are a very powerful tool for those trading in the foreign exchange market.

Bloomberg Terminal - Wikipedia

For related reading, see Forex Basics: Setting Up An Account. The Bottom Line We've only just begun to scrape the surface of the Bloomberg terminal's capabilities in this article. Several online tutorials are available to those interested in learning more, including those offered directly from Bloomberg itself.

As well, more and more Colleges and Universities are offering Bloomberg courses, to help students gain early exposure to the most widely used tool for real-time financial data in the world of finance. Dictionary Term Of The Day. A measure of what it costs an investment company to operate a mutual fund. Latest Videos PeerStreet Offers New Way to Bet on Housing New to Buying Bitcoin?

This Mistake Could Cost You Guides Stock Basics Economics Basics Options Basics Exam Prep Series 7 Exam CFA Level 1 Series 65 Exam. Sophisticated content for financial advisors around investment strategies, industry trends, and advisor education. The Bloomberg Terminal At A Glance By Investopedia Staff Share. Economic Indicators Design and Layout The Bloomberg terminal, from the perspective of the end-user, is a Windows-based application, making it compatible with the popular Excel program, a very important aspect of the system for those in the finance industry.

Image courtesy of Wikipedia For those still relatively new to the terminal, let's take a look at some of its capabilities: News Feed Interface Equities When searching for publicly traded equity shares, Bloomberg allows users to search by name, exchange, country and other such topics. Equity Menu Bloomberg also allows clients to compare and contrast equities side by side, offering a comparative analysis of any two equities.

A look at the inner workings of one of Wall Street's most secretive yet most important private companies.

Find out how to use the Bloomberg terminal computer system to trade stocks. Market leader Bloomberg offers lots of tools; some are better for traders, some for financial analysts. Here are the top Bloomberg tools for the latter. This advanced guide gives an in-depth introduction to the Bloomberg Terminal's advanced features.

Look at why there is no Bloomberg LP stock, including a review of the company's history, products, ownership and major competitors. Research Morningstar's largest competitors in order to better understand the company's position in the financial information Read a brief overview about some of the different ways that derivatives traders can terminate their contracts early, including The correct answer is: If a swap has value, Learn about the history of swap agreements, the first swap agreement between IBM and the World Bank, and how swaps have evolved Learn why parties enter into swap agreements to hedge their risks, and understand how the different legs of a swap agreement An expense ratio is determined through an annual A hybrid of debt and equity financing that is typically used to finance the expansion of existing companies.

A period of time in which all factors of production and costs are variable. In the long run, firms are able to adjust all A legal agreement created by the courts between two parties who did not have a previous obligation to each other. A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. A statistical technique used to measure and quantify the level of financial risk within a firm or investment portfolio over No thanks, I prefer not making money.

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