Path-dependent options are complex financial derivatives where the payoff depends on the path taken by the underlying asset's price over time, rather than just its final price.
A pending order, also known as an open order, is an order that has been placed but not yet executed in financial markets. This comprehensive guide covers its definition, types, examples, and significance in trading and investments.
A Pennant is a small symmetrical triangle that appears after a flagpole, indicating brief consolidation before continuation. It is widely used in technical analysis in finance.
A Pennant is a technical analysis chart pattern that resembles a smaller triangle formed by converging trend lines, typically signaling a continuation in price trends.
A Position Trader is an investor who holds positions in financial securities over an extended period, ranging from weeks to years, with the primary focus on long-term trends and fundamental analysis.
A comprehensive exploration of principal brokers, their functions, distinctions from commission brokers, historical context, and their roles in modern finance.
An insightful exploration of the Profit Factor, a critical ratio used in financial trading to evaluate the efficiency and performance of an investment strategy by comparing gross profits to gross losses.
An in-depth guide on profit-taking, covering historical context, types, key events, strategies, models, diagrams, importance, applicability, examples, related terms, and more.
Proprietary trading, or prop trading, is when a firm uses its funds to trade financial instruments, seeking to profit from market movements. This article covers the historical context, types, key events, detailed explanations, importance, applicability, and more.
While both protective puts and covered calls are options strategies used for risk management, they serve different purposes. A protective put minimizes downside risk, while a covered call involves selling a call option against owned stock to generate additional income.
An in-depth explanation of quotation in the context of stock markets, including historical context, types, key events, detailed explanations, mathematical models, charts, importance, applicability, and more.
A comprehensive overview of a quote-driven system, where market makers facilitate trading by quoting buy and sell prices, including historical context, categories, key events, detailed explanations, mathematical models, and practical applications.
The 'Real Body' is a fundamental component of candlestick charts in financial technical analysis, representing the range between the opening and closing prices for a given time period.
Realized profits refer to the gains that are confirmed and recognized once a financial position is closed. It is an essential concept in investing, trading, and finance, providing clear insights into actual financial performance.
Registered Shares are securities that are formally registered with the U.S. Securities and Exchange Commission (SEC) and can be freely traded on the open market. This entry elaborates on their definition, types, special considerations, examples, history, and more.
A comprehensive overview of regulated markets, including historical context, types, key events, regulations, and their importance in the financial system.
An in-depth examination of Restricted Lists, their purpose in the financial industry, how they compare to Gray Lists, and their practical implications.
Scalpers are traders in financial markets known for their frequent, short-term trades aimed at small gains, often holding positions for just a few minutes.
An in-depth exploration of the Securities and Exchange Commission, its historical context, roles, functions, and its importance in financial regulation.
An arrangement where value-added tax (VAT) on second-hand goods is calculated based on the trader's margin rather than the total selling price, typically applied in the sale of second-hand cars.
The secondary market is where previously issued shares and securities are traded among investors. This market provides liquidity, facilitating the ease of buying and selling shares, distinct from the primary market where new issues are sold.
An in-depth look at the Securities and Exchange Commission (SEC), the primary government agency overseeing securities trading and takeovers in the United States.
In-depth exploration of the role and functions of securities regulators, their historical context, types, examples, and their impact on financial markets.
An in-depth exploration of the Seller's Market, including its definition, historical context, key events, mathematical models, applicability, and related concepts.
The date by which a financial transaction must be completed, specifically the delivery of securities and payment, typically two business days after the trade date.
Settlement Day refers to the day on which trades are cleared by the delivery of securities or foreign exchange, ensuring the finalization of financial transactions.
Share price refers to the price at which a share of stock is bought or sold in financial markets. It is influenced by multiple factors, including market demand, company performance, and economic conditions.
The Shenzhen Stock Exchange (SZSE) is one of the major stock exchanges in China, facilitating a vast range of securities trading, including stocks, bonds, mutual funds, and derivatives.
A comprehensive exploration of speculation, an economic activity aimed at profiting from expected changes in the prices of goods, assets, or currencies.
Speculative Investment involves making investment decisions based on the expectation of significant price increases. This high-risk, high-reward strategy can yield substantial returns but comes with considerable risk.
A comprehensive exploration of speculative trading, focusing on its high-risk nature, short-term strategies, methods, historical context, and contemporary applications.
The Spot Market deals in commodities or foreign exchange for immediate delivery, typically within two business days for currencies and within seven days for commodities. Compare with forward dealing futures contracts.
An in-depth exploration of the spot price, its significance in financial markets, methods of calculation, and impact on trading and investment decisions.
Statistical Arbitrage is a trading strategy that involves identifying and exploiting price disparities between related securities using statistical methods.
An in-depth exploration of stock exchanges, where company shares and government stocks are traded. Covering their historical development, functioning, importance, and impact on the global economy.
An in-depth look at the Stock Exchange Automated Quotation System (SEAQ), its historical context, significance in trading, functionality, and related concepts.
Stock Float refers to the total number of a company's shares that are available for trading by the general public, excluding closely-held shares by insiders.
A comprehensive explanation of the differences between stock market sectors and economic sectors, including definitions, examples, and special considerations.
An in-depth exploration of the stock price, including its historical context, factors influencing it, types, key events, mathematical models, and its importance in the financial markets.
An in-depth exploration of Stock Returns Notes, including historical context, key events, types, detailed explanations, mathematical models, importance, and applicability in finance.
A comprehensive overview of Stock Transfer Notes, including their historical context, types, key events, importance, applicability, examples, and more.
An agent who buys and sells securities on a stock exchange on behalf of clients, providing investment advice and receiving a commission for their services.
This entry delves into the distinction between stocks and commodities, exploring their characteristics, historical context, types, key events, and relevance in the financial markets.
An order given by an investor to a broker to sell a financial instrument, commodity, etc., when its price falls to a specified level in order to limit loss.
Strong hands refer to traders and investors with high conviction in their investment strategy and the financial stamina to withstand market volatility.
The Summer Doldrums refer to the generally lower trading volumes and market activity seen throughout the summer months, similar to the Hamptons Effect.
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