Support and resistance levels are key price points in financial markets where trends may reverse, aiding in making informed trading and investment decisions.
A Swing Trader is an investor who aims to profit from short- to medium-term market movements by holding positions for several days to a few weeks, leveraging medium-term trends.
Terminal-Loss Relief provides financial relief for losses made during the final 12 months of trading for businesses that are permanently discontinued. It allows the trading loss in the final accounting period to be carried back and offset against the profits of the three years preceding the final period of trading.
Theta Decay refers to the progressive reduction of the extrinsic value of an option as it nears its expiration date, impacting options pricing and trading strategies.
Explore the concept of Thin Market, including its definition, characteristics, implications, and more. Understand how it compares to a deep market and its impact on trading strategies and investment decisions.
Threshold Securities are financial instruments that have failed to deliver on positions for five consecutive settlement days. This term is significant in the context of U.S. equity markets and securities regulations.
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.
Trading refers to the frequent buying and selling of assets, often on a short-term basis, to capitalize on market fluctuations. This comprehensive entry covers definitions, types, examples, historical context, and related terms.
A comprehensive explanation of trading flexibility, its significance in financial markets, and how it differentiates financial instruments like SPDRs from mutual funds in terms of trading dynamics.
Trading hours refer to the specific times during which trading activities occur in financial markets. This includes stock markets, Forex markets, and other trading environments.
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.
Trading securities are financial assets acquired primarily for generating profit from short-term fluctuations in market prices. They are highly liquid and subject to active trading on stock markets.
An in-depth look at transaction fees, the costs charged by brokers for executing trades, including their types, historical context, importance, and more.
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.
Unwind refers to the process of closing an investment position by undertaking a reverse trade to offset an existing position, thereby bringing the net position to zero.
Unwinding refers to the process of closing out a financial position, typically in trading and investment contexts. It involves taking actions to close or reduce an existing position in order to realize profits or limit losses.
Vanilla Options are standard financial options that do not have any barrier levels or complex features. They are the most straightforward type of option contract.
Wave Count is a method used primarily in technical analysis to identify and label waves within a price movement structure. This technique is vital for analysts using Elliott Wave Theory to forecast potential future market movements.
The White Market comprises officially regulated trading channels recognized by legal and governmental bodies, where goods and services are exchanged within the boundaries of the law.
A White Marubozu is a candlestick pattern in technical analysis that signifies a strong bullish trend, characterized by a single, long, unshaded candle body.
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.
A comprehensive guide to differentiate between writing and overwriting options in financial markets, focusing on their definitions, examples, and applications.
An American Depositary Receipt (ADR) is a financial instrument issued by U.S. banks that allows domestic investors to buy shares in foreign companies more conveniently. ADRs trade on U.S. stock exchanges and over-the-counter markets like domestic stocks.
An arbitrageur is a person or firm that engages in arbitrage to exploit price differences in various markets. By doing so, they help in ensuring market efficiency.
An in-depth look into why the New York Stock Exchange (NYSE) is commonly referred to as the 'Big Board'. This entry explores the historical context, significance, and evolution of this iconic financial term.
In finance, a block refers to a large quantity of stock or a large dollar amount of bonds held or traded. Typically, 10,000 shares or more of stock and $200,000 or more worth of bonds are considered a block.
A bond broker is a professional who executes bond trades either on the floor of an exchange or over the counter for corporate, U.S. government, or municipal debt issues, primarily for large institutional accounts.
A bull market signifies a prolonged period of rising prices in the market for assets such as stocks, commodities, and bonds, reflecting investor confidence and inducing a self-sustaining cycle of speculation and investment.
A comprehensive guide to understanding the concept of a business day, including general definitions, financial significance, variations, and practical examples.
A comprehensive overview of the Cash Market, where transactions are promptly completed, ownership is transferred, and payment is made upon delivery of the commodity.
Cash Position refers to the amount of cash or equivalent instruments held by an individual or entity at any point in time. Critical for maintaining liquidity, cash position is monitored by traders, investment companies, and businesses to ensure financial stability and operational efficiency.
A comprehensive overview of the CME Group, formed in 2007 by the merger of the Chicago Board of Trade (CBOT) and the Chicago Mercantile Exchange (CME).
A comprehensive guide to understanding the role, functions, and intricacies of a Commission Broker, who executes trades of stocks, bonds, or commodities for a commission.
The Committee on Uniform Securities Identification Procedures (CUSIP) is a committee that assigns identifying numbers and codes for all securities. These CUSIP numbers and symbols are crucial for recording buy and sell orders in the securities market.
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.
Comprehensive overview of the Commodities Futures Trading Commission, its regulatory function, historical context, applicability, related terms, and FAQs.
A comprehensive overview of Credit Default Swaps (CDS) including their functions, mechanisms, examples, historical context, and implications in financial markets.
A comprehensive analysis of CROSS securities transactions, where the same broker acts as an agent for both buyer and seller, along with legal implications and operational aspects.
A detailed explanation of CROWD, a term referring to a group of exchange members with specific roles congregated around a trading post, including specialists, floor traders, odd-lot dealers, brokers, and more.
A detailed explanation of cum dividend, cum rights, and cum warrant, including their definitions, types, implications, and related terms in the stock market.
A day order is a directive to buy or sell securities that expires unless executed or canceled on the day it is placed. This article delves into the definition, examples, and differences of a day order in comparison to other order types such as Good-Till-Canceled Orders (GTC).
Delisting refers to the removal of a security's listing on an organized stock exchange such as the New York Stock Exchange due to failure to maintain minimum listing requirements.
A detailed explanation of a discount broker, including its services, comparison with full-service brokers, and relevance in stock markets and real estate.
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.
Execution Law pertains to the signing, sealing, and delivering of contracts or agreements to make them valid, as well as carrying out securities trades in financial contexts.
The exercise price, also known as the strike price, is the fixed price at which the holder of an option can buy (in the case of a call option) or sell (in the case of a put option) the underlying stock, or the price at which a convertible security can be redeemed for shares of stock.
A 'Fail to Deliver' situation occurs when the broker-dealer on the sell side of a contract has not delivered securities to the broker-dealer on the buy side. This situation is often due to the selling customer failing to provide the necessary delivery.
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.
Explaining the phenomenon where a stock's price drops sharply, typically due to negative corporate developments, such as failed takeovers or underwhelming profits.
Floating supply refers to the total dollar amount of municipal bonds in the hands of speculators and dealers that is for sale at any particular time, and the number of shares of a stock available for purchase.
A fractional share represents a unit of stock that is less than one full share. It occurs as a result of stock dividends, stock splits, or through direct fractional share purchasing programs.
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.
An in-depth exploration of futures transactions in hedging scenarios, encompassing definitions, examples, historical context, and related terminologies.
Going Short refers to selling a financial instrument that the seller does not currently own, with hopes of buying it back later at a lower price. This strategy is commonly used in stock and commodity markets.
An in-depth look at the concept of 'Hammering the Market,' a term used to describe the intense selling of stocks by speculators who believe prices are inflated and the market is about to drop.
A comprehensive article that explains the dual meaning of 'Hot Stock' in finance and provides detailed insights, historical context, and related terms.
Index Options are derivative securities that allow investors to trade in a particular market or industry group without having to buy all the individual stocks. They are available on several exchanges including New York, American, and Chicago Board Options exchanges.
A 'Leader' in financial markets refers to a stock or a group of stocks that are at the forefront of an upsurge or downturn. It also applies to products that hold a large market share.
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