A comprehensive explanation of 'Spread' in financial markets, detailing its definition, types, importance, and related concepts.
An in-depth exploration of the term 'Square Off,' its definitions, applications, historical context, and related terms in the trading community.
An open position in financial trading that has been covered or hedged.
A commodity produced to uniform specifications, ensuring interchangeability and facilitating trading in forward and futures markets. Examples include wheat and crude oil.
An in-depth look into the Stock Exchange Trading System (SETS), its history, functionalities, importance, and practical applications in modern financial markets.
This entry delves into the distinction between stocks and commodities, exploring their characteristics, historical context, types, key events, and relevance in the financial markets.
A stop-loss order is a protective trading mechanism designed to sell an asset when it reaches a predetermined price, thus preventing larger losses.
Subscribed shares refer to shares that investors have agreed to purchase but are not yet allotted. This term plays a crucial role in the capital raising process and the functioning of financial markets.
An article detailing the concept of 'Support' in financial markets and technical assistance contexts, including definitions, applications, and examples.
In-depth analysis of Swing Highs and Swing Lows, crucial turning points in financial charts indicating local price peaks and dips.
Understanding T+1 Settlement, its significance, processes, implications, and comparisons to other settlement cycles in financial markets.
A take-profit order is a pre-set directive to sell an asset when it reaches a specified price to secure profits.
Tenkan-Sen, also known as the Conversion Line, is a crucial component of the Ichimoku Kinko Hyo trading system. It represents the average of the highest high and the lowest low over the past nine periods.
**Theta** measures the rate of change of the option's price concerning time, indicating how much the price of an option decreases as it approaches its expiration date.
Theta Hedging is a strategy used in options trading to manage the decay of an option's price as it approaches expiration, providing a critical tool for traders looking to minimize the adverse impact of time decay.
A comprehensive guide to understanding the minimum movement of the price of a security in a financial market, known as the 'tick.' Explore its historical context, types, key events, and its importance in trading and finance.
Trade Confirmation is a specific type of confirmation note used in trading, detailing the terms and conditions of a trade between parties.
Trade Matching involves the comparison of buy and sell orders in the financial markets to ensure they align. It plays a critical role in ensuring the efficiency and integrity of market transactions.
A facility operated by FINRA where broker-dealers report transactions for regulatory compliance.
A detailed examination of trade tickets, their significance in financial markets, historical context, types, key events, and practical examples.
Trade-through refers to a situation where a buy or sell order is executed at a price worse than the best available price, contravening the practices aimed at obtaining the best execution for investors. This entry delves into the concept, its implications, and relevant regulatory frameworks.
A comprehensive exploration of trading loss, its types, causes, implications, and strategies to mitigate it. Understanding trading losses in financial activities is crucial for risk management and long-term profitability.
Discover the intricacies of trading mechanisms including OTC and exchange-traded markets, and explore how these structures facilitate financial market transactions.
A comprehensive overview of trading sessions, their historical context, types, key events, detailed explanations, and importance in the financial markets.
An in-depth exploration of trend continuation in financial markets, including its historical context, types, key events, mathematical models, and practical applications.
Trend Following is a trading strategy that capitalizes on the momentum of market trends. It is commonly used in various financial markets including stocks, commodities, and forex. Learn about its applications, methods, and historical context.
Straight lines drawn on charts to represent the directional movement of an asset's price, indicating prevailing trends without the averaging process.
A comprehensive overview of Trend Reversal, its types, significance in various markets, and strategies to identify and leverage it.
Trendlines are fundamental tools in technical analysis used to identify and confirm the direction of price movements over time.
Detailed explanation of Triangle Patterns in technical analysis, including symmetrical, ascending, and descending triangles, and their implications.
The Troy Ounce (ozt) is a unit of measure predominantly used for precious metals such as gold, silver, platinum, and palladium. One Troy Ounce is approximately equivalent to 31.1035 grams and has a distinct historical and practical significance in trading and investment.
True Range (TR) is a technical analysis indicator used to measure the volatility of a market by assessing the range of price movement within a given trading period.
A comprehensive overview of the upper shadow (wick) in candlestick charts, which indicates the high price for the period. Learn about its historical context, significance in trading, and more.
Vanna measures the sensitivity of an option's delta to changes in implied volatility, playing a crucial role in options trading and risk management.
Virt-x was a pioneering electronic exchange based in London, later acquired by SWX Swiss Exchange, notable for its integration of advanced trading technologies.
Virtual Funds are simulated money used in demo accounts for trading practice, enabling traders to learn and test strategies without financial risk.
Understanding Volume Moving Average: Historical Context, Applications, Models, Examples, and More
VWAP is a trading benchmark that represents the average price a security has traded at throughout the day, based on both volume and price.
A comprehensive overview of warrants, including share warrants, warehouse warrants, key events, detailed explanations, examples, and more.
A comprehensive guide to understanding the win rate, a key metric in trading which indicates the proportion of successful trades out of the total trades executed.
Detailed explanation of 'At the Close Order' used in trading, its types, considerations, and applications.
An 'At The Market' order, also known as a market order, is an instruction to buy or sell a security immediately at the best available current price.
A comprehensive guide to the 'BUY IN' procedure in options trading, focusing on the termination of responsibilities to deliver or accept stock, as well as the implications in securities transactions between brokers.
A comprehensive overview of the Cash Market, where transactions are promptly completed, ownership is transferred, and payment is made upon delivery of the commodity.
Churning refers to the practice of excessive trading by a broker in a client’s account mainly to generate commissions that benefit the broker, often at the client's expense. This practice is illegal and clients may seek recovery of damages.
Exploring COMEX, the primary futures and options market for trading metals such as gold, silver, and copper, and its role in the global trading system.
Commodities Futures are contracts in which sellers promise to deliver a given commodity by a certain date at a predetermined price. The contract specifies the item, price, expiration date, and standardized unit to be traded.
Cornering the Market is the practice of purchasing a security or commodity in large volumes to control its price, which is considered illegal due to its artificial price manipulation effects.
The daily trading limit is the maximum allowed price fluctuation for commodities and options within a single trading day, with restrictions to curb extreme volatility in the market.
Detailed insight into delayed opening, the postponement of the start of trading in a stock due to a gross imbalance in buy and sell orders.
An exploration of 'Delivery Date' in finance, including its meaning in futures contracts and NYSE transactions.
A comprehensive explanation of 'Down Tick'; a sale of security at a price below that of the preceding sale, also referred to as a 'minus tick'.
A comprehensive explanation of each way commission, where brokers earn on both purchase and sale sides of a trade, including definitions, examples, and related terms.
An in-depth exploration of exchange, covering its various forms, historical context, examples, related legal provisions, and FAQs.
An in-depth look at the situation where the broker-dealer on the buy side of a contract has not received delivery of securities from the broker-dealer on the sell side.
A Fill or Kill (FOK) order is an instruction to buy or sell a security immediately in its entirety, or else the order is canceled completely. These orders are typically used to ensure that transactions do not suffer delays or partial completions.
A detailed explanation of fixation, the process of setting present or future prices of commodities by assessing market forces.
An overview of Flash Trading as a specific strategy within High-Frequency Trading, exploring its mechanisms, applications, and controversies.
An in-depth exploration of the term 'flat' covering various contexts in finance, real estate, trading, and more.
Comprehensive overview of fluctuation limits imposed by commodity exchanges to control daily price movements in futures trading.
A futures contract is an agreement to buy or sell a specific amount of a commodity or financial instrument at a predetermined price on a specific future date, obligating both parties to transact unless the contract is sold to another party before the settlement date.
The Futures Market is an organized marketplace where Futures Contracts, agreements to buy or sell a commodity at a future date at a predetermined price, are traded. This article explores types, functions, historical context, and modern applications of Futures Markets.
High-Frequency Trading (HFT) involves executing trades within microseconds using advanced algorithms and supercomputers to exploit market inefficiencies and earn exchange rebates. This practice is highly debated in terms of its regulatory and ethical implications.
A thorough exploration of the concept of 'Historic Low', the lowest price paid for a security over a specified period or since it began trading. Understand the significance, applications in investment strategy, and related terms.
Legging-Out refers to the disposal of one or more unmatured elements in a qualified hedging transaction, where any gain or loss is deferred until the qualifying debt instrument matures or is disposed of in the future.
A comprehensive guide to Limit Orders, which includes their definition, types, benefits, examples, historical context, and related terms in trading.
An in-depth exploration of the 'Limit Up, Limit Down' mechanism in futures contracts, defining maximum allowed price movements, implications of dramatic developments, and possible consecutive limit moves.
Market Price refers to the most recent price agreed upon by buyers and sellers of a product or service, dictated by supply and demand or the last reported price at which a security was sold in finance.
The Chicago Mercantile Exchange (CME), commonly known as the MERC, is a prominent financial exchange for trading futures, futures options, and foreign currency futures contracts.
A naked option refers to an options contract for which the seller or buyer does not hold the underlying security. This concept in options trading entails significant risk, as the writer of the naked option could be exposed to substantial losses if the market moves unfavorably.
An overview of NASDAQ, the computerized system providing brokers and dealers with price quotations for securities traded over the counter and New York Stock Exchange-listed securities.
Comprehensive overview of the New York Board of Trade (NYBOT), its history, evolution, and current status as ICE Futures US.
The New York Mercantile Exchange (NYMEX) is a leading commodity derivatives exchange, providing a platform for trading energy futures, options, and other commodity products.
Standard & Poor’s 100 stock index, known as OEX, is an American stock market index comprised of 100 leading U.S. stocks with options traded on various exchanges.
On consignment is a business arrangement where goods are placed in the care of a third party (consignee) to sell on behalf of the owner (consignor), often in return for a commission upon sale.
An in-depth exploration into open interest, detailing the total number of contracts in a commodity or options market that are still outstanding, breaking down its implications, calculation methods, historical context, and its significance in financial markets.
A traditional trading method where traders shout their buy or sell offers to facilitate contracts on a commodity exchange.
Options refer to things one purchases to add to a basic product, alternative courses of action that face a decision-maker, and the financial right, but not obligation, to buy or sell property.
A comprehensive explanation of the action of placing a higher bid than a competitor in auctions and competitive bidding environments.
Outcry Market refers to a type of market in which prices are set by continuous verbal negotiation among participants, typically found on the trading floors of commodity exchanges.
A comprehensive look at the term 'Oversold,' referring to a stock or market that has experienced a sharp price decline, potentially signaling an imminent price rise as per technical analysis.
Explore the deceptive practice known as 'Painting the Tape' in financial markets, including its techniques, implications, and related regulations.
A comprehensive overview of premium income, a type of income received by investors through the sale of put or call options. Includes definitions, types, considerations, examples, historical context, applicability, comparisons, related terms, FAQs, references, and a final summary.
Comprehensive definition of the Pump and Dump scheme, an illegal practice involving the artificial inflation of stock prices for profit.
Regular-Way Delivery (and Settlement) refers to the completion and finalization of a securities transaction at the office of the purchasing broker, typically on the third full business day following the transaction date, as mandated by the New York Stock Exchange.
A riskless transaction is a trade that guarantees a profit to the trader who initiates it, usually by exploiting market inefficiencies. See also [Arbitrage].
A round lot, typically 100 shares for stocks or a specific par value for bonds, represents the standard trading unit on major securities exchanges like the New York Stock Exchange.
A scalper speculator enters into quasi-legal or illegal transactions to turn a quick profit. This entry explores the definition, types, historical context, and implications of scalping.
A detailed exploration of the term 'SEAT,' referring to membership on a securities or commodities exchange, typically bought and sold at market-driven prices.
A sudden and sharp decrease in security prices where stock or bond holders panic and offload their holdings drastically, often signaling the bottom of a bear market.
Detailed exploration of Short Interest in the stock market, including definitions, mathematical formulations, historical context, and practical applications.
A comprehensive understanding of Short Position in commodities and securities, its implications, historical context, and practical applications.
A short squeeze occurs when many traders with short positions are forced to buy stocks or commodities to cover their positions and prevent losses, leading to a surge in prices.
Detailed explanation of Spot Commodity trading, distinctions from Futures Contracts, and the dynamics of the Spot Market.
The nearest month among currently traded contracts in which a commodity can be delivered, such as February for contracts in late January.
A comprehensive overview of the Spot Market, where commodities are sold for cash and delivered immediately. Analyzing its operations, comparisons with futures contracts, and relevance in financial markets.
Detailed explanation of Stock-for-Asset Reorganization, its types, considerations, examples, historical context, applicability, and related terms.
A Technical Rally is a short-term rise in the price of securities or commodities futures within a broader declining trend, often stimulated by bargain-hunting investors or the identification of support levels.
An in-depth explanation of the tick in stock trading, describing its significance, types, and usage by technical analysts to determine price trends.
A comprehensive overview of the ticker system, including its function in providing real-time trading activity reports, historical context, and modern applications in stock exchanges.
