Atlas / Glossary / Compounding Compounding Earning returns on past returns. Slow, then sudden: 7% a year doubles money in a decade and quadruples it in two. The most consequential arithmetic in finance — try the calculator on the equities page.
Educational reference — not advice. This page explains how an instrument works. It is not a recommendation to buy, sell or hold anything, it takes no account of your circumstances, and every figure shown is illustrative. Full disclaimer .
Where Compounding is explained in depth The definition above is the short version. These pages put it to work, in the order they use it most:
Calculators that compute it The whole glossary
Not advice. This explains how something works; it is not a recommendation, and nothing here is tailored to you. You can lose everything you put in — with leveraged instruments, considerably more. StrikeAndYield is not a regulated firm and provides no financial services.
The same in full — six points, and why each one matters No advice, no recommendation. Nothing on this page constitutes investment, financial, legal, tax or accounting advice, a personal recommendation, or an offer or solicitation to buy or sell any financial instrument.Nothing here is tailored to you. This is written for a general audience. It does not consider your objectives, financial situation, knowledge, time horizon or tolerance for loss.The examples are simplified. Worked examples use round numbers and leave out costs, spreads , taxes, collateral , settlement and market conventions that materially change real outcomes.The models are teaching models. Formulas shown are standard textbook formulations. Institutions add calibration, live market data and credit, funding and capital adjustments — nothing here will reproduce a dealer’s quote or produce a valuation you can rely on.These instruments carry risk. You can lose your entire investment. Leveraged instruments — futures, options , CFDs, perpetual futures and similar — can cost you considerably more than you originally deposited.We are not a regulated firm. StrikeAndYield is an independent publication by DELISORIA. It is not a bank, broker, fund manager or licensed adviser, it provides no financial services, and reading it creates no client relationship. For decisions about your own money, consult a professional licensed in your jurisdiction. See the full disclaimer .