The prime rate is what commercial banks charge their most creditworthy borrowers. It moves in lockstep with the federal funds rate — typically sitting 3 percentage points above it. When the Fed moves, the prime rate follows within hours. Your credit card, your car loan, your home equity line — all priced as prime plus a margin. The better your credit, the closer you get to prime. But nobody pays less. It's the floor, not the ceiling. This maps to Module 6.1 — Macro Indicators and Sentiment. https://youtu.be/653SJHGokFs

Key Takeaways

• The prime rate is the rate banks charge their most creditworthy borrowers
• It moves in lockstep with the federal funds rate — typically 3 points above it
• Credit cards, car loans, and HELOCs are all priced as prime plus a margin
• Nobody pays less than prime — it's the floor, not the ceiling
• This maps to Module 6.1 — Macro Indicators and Sentiment

For educational purposes only. Not financial advice. Past performance does not guarantee future results. Trading involves risk. Consult a qualified financial adviser before making investment decisions.

I'm Russell Larke — BA (Hons) Business Management, currently completing an MSc in Systems Thinking in Practice, with plans to pursue a doctorate. I've run an environmental consultancy as Managing Director and have traded financial markets for years. I teach the Larke Cycle — a testable framework for understanding market structure beyond chartism. Regards, Russell Larke BA (Hons) Business Management | MSc Candidate (Systems Thinking) Beyond the Chart