// TRADING TERMINOLOGY
What is Yield Curve?
A line that plots the interest rates of bonds having equal credit quality but differing maturity dates.
In-Depth Explanation
An "Inverted Yield Curve" is historically one of the most reliable predictors of an upcoming economic recession.
Practical Example
"Economists are watching the inverted yield curve as a sign of trouble ahead."
Related Terms
Master the language of risk
Knowing the terms is just the start. Learning how to apply them is where the edge is found.
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