Trading

Support and Resistance: Key Concepts in Technical Analysis
Summary of Support and Resistance levels in technical analysis, their role, applications, and importance in predicting price movements.
Support Zone: Key Concept in Technical Analysis
A comprehensive guide to understanding the support zone, its historical context, importance in trading, and practical applications.
Swing Trader: Trades over days or weeks, leveraging medium-term trends
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: A Computer System for Market Data and Trading Platforms
A terminal is a specialized computer system used by traders and analysts to access real-time market data and execute trades through trading platforms.
Terminal-Loss Relief: Relief for Business Losses in Final Trading Period
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: The Erosion of Extrinsic Value in Options
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.
Thin Market: An In-Depth Analysis
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: Definition and Implications
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.
Tick: The Minimum Movement of a Security's Price
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.
Ticker: Continuously Updates Information About Trades on the Exchange
A detailed exploration of the term 'Ticker,' which refers to a real-time update mechanism that displays trades occurring on financial exchanges.
Trade Confirmation: Essential Documentation in Trading
Trade Confirmation is a specific type of confirmation note used in trading, detailing the terms and conditions of a trade between parties.
Traders and Brokers: Key Roles and Differences
Understanding the nuanced roles and differences between traders and brokers, essential for passing the Series 57 Exam.
Trading: The Art of Capitalizing on Market Fluctuations
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.
Trading Company: Key Aspects and Insights
Explore the comprehensive details of a trading company, its historical context, types, key events, and significance in modern economies.
Trading Currency: A Comprehensive Overview
A detailed examination of trading currencies, their significance in international trade, historical context, types, and key considerations.
Trading Flexibility: Key Advantage in Financial Instruments
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: Understanding Different Market Timings
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.
Trading Loss: Financial Setbacks in Trading Activities
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: Financial Assets Held for Short-term Profit
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.
Transaction Fee: Cost Charged by Brokers for Executing Trades
An in-depth look at transaction fees, the costs charged by brokers for executing trades, including their types, historical context, importance, and more.
Trend Reversal: Change in the Direction of a Price Trend
A comprehensive overview of Trend Reversal, its types, significance in various markets, and strategies to identify and leverage it.
Trend vs. Noise: Understanding Market Movements
Comprehensive exploration of trends and noise in financial markets, their distinctions, and their implications for investors.
Troy Ounce (ozt): A Unit of Measure for Precious Metals
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: Closing an Investment Position
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: The Process of Closing a Financial Position
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: Standard Options with No Barrier Levels
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.
Vega (v): Sensitivity to Changes in Implied Volatility
Vega measures how the price of an options contract changes with respect to changes in the implied volatility of the underlying asset.
Virtual Trading: A Simulated Trading Environment
Virtual Trading involves trading assets in a simulated environment without real money, mainly for educational purposes.
VIX Futures: Contracts that Bet on the Future Value of the VIX
Comprehensive overview of VIX Futures, their definition, types, applications, historical context, and examples in financial markets.
VIX Options: Comprehensive Guide to Volatility Index Options
VIX Options provide traders with opportunities to hedge, speculate, and implement nuanced trading strategies based on market volatility.
Volatility Swaps: A Comprehensive Overview
Understanding Volatility Swaps, their historical context, types, key events, formulas, and applicability in the financial markets.
Volatility Trading: Strategies for Profiting from Market Swings
Comprehensive guide to volatility trading, including historical context, types, key events, mathematical models, charts, importance, applicability, examples, related terms, comparisons, interesting facts, inspirational stories, quotes, jargon, FAQs, references, and summary.
Volume (V): Number of Contracts Traded Within a Specified Period
A comprehensive analysis of Volume (V), encompassing historical context, types, key events, mathematical models, importance, applicability, and more.
Wave Count: Identifying and Labeling Each Wave in a Structure
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.
Wedges: Technical Chart Pattern Analysis
A comprehensive look into the wedge chart pattern, types, historical context, and practical applications in technical analysis.
White Market: Fully Legal and Regulated Channels
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.
White Marubozu: Single-Candle Pattern Indicating a Strong Trend
A White Marubozu is a candlestick pattern in technical analysis that signifies a strong bullish trend, characterized by a single, long, unshaded candle body.
Win Rate: The Percentage of Total Trades That Are Wins
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.
Writing vs. Overwriting: Understanding the Differences
A comprehensive guide to differentiate between writing and overwriting options in financial markets, focusing on their definitions, examples, and applications.
American Depositary Receipt (ADR): Simplifying Foreign Investments
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.
Arbitrageur: Expert in Market Inefficiencies
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.
Big Board: Popular Term for the New York Stock Exchange (NYSE)
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.
Block (Finance): Large Quantity of Stock or Bonds Held or Traded
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.
Bond Broker: Financial Intermediary for Bond Trades
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.
Bourse: French Term for Stock Exchange
The term 'Bourse' refers to a stock exchange, derived from French, commonly used in Europe to denote financial markets for trading securities.
Broker-Dealer: A Comprehensive Overview
Detailed definition and explanation of Broker-Dealer, its functions, regulations, types, and its role in financial markets.
Bull Market: An Era of Rising Market Prices
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.
Business Day: Definition and Implications
A comprehensive guide to understanding the concept of a business day, including general definitions, financial significance, variations, and practical examples.
Buy Order: Definition and Key Concepts
A Buy Order is an instruction to a broker to purchase a specified quantity of a security at either the market price or a stipulated price.
Buying on Margin: An In-Depth Guide
An informative overview of buying on margin, its regulations, types, examples, historical context, and more.
Cash Market: Immediate Transactions Market
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: Understanding Financial Liquidity and Management
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.
Close: Definitions Across Various Contexts
Comprehensive explanation of 'Close' ranging from finance and trading to accounting and computing environments.
CME Group: Leading Futures and Options Exchange
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).
Collar Index Level: Definition and Explanation
An in-depth overview of the collar index level, its role in circuit breakers for stock markets, and its implications for trading.
Commission Broker: Broker Executing Trades for a Commission
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.
Committee on Uniform Securities Identification Procedures (CUSIP): Identifying Securities
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: Contracts and Trading
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.
Commodities Futures Trading Commission: Regulatory Body Overview
Comprehensive overview of the Commodities Futures Trading Commission, its regulatory function, historical context, applicability, related terms, and FAQs.
Consignment: Detailed Explanation
An in-depth exploration of consignment, focusing on its definition, types, historical context, and applications.
Credit Default Swap: Financial Derivatives and Risk Management
A comprehensive overview of Credit Default Swaps (CDS) including their functions, mechanisms, examples, historical context, and implications in financial markets.
CROSS Securities Transaction: Broker as Agent for Both Sides
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.
CROWD: Group of Exchange Members with Defined Functions
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.
Cum Dividend, Cum Rights, or Cum Warrant: Financial Terms Explained
A detailed explanation of cum dividend, cum rights, and cum warrant, including their definitions, types, implications, and related terms in the stock market.
Day Order: An Overview
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).
Dealer Exchange: A Modern Marketplace for Securities
A comprehensive examination of dealer exchanges, highlighting their structure, functioning, historical context, and related terms.
Delisting: Removal of an Issue from Trading on an Organized Stock Exchange
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.
Delivery Date: Definition and Context
An exploration of 'Delivery Date' in finance, including its meaning in futures contracts and NYSE transactions.
DIP: Momentary Weakness in Securities Prices
A detailed explanation of a 'DIP' in securities prices, its relevance in trading strategies, and advice for investors.
Discount Bond: Below Face Value Investment Instrument
Comprehensive guide on Discount Bonds, their types, examples, historical context, and comparisons with related financial instruments.
Discount Broker: An Introduction
A detailed explanation of a discount broker, including its services, comparison with full-service brokers, and relevance in stock markets and real estate.
Discounted Loan: Financial Instrument below Face Value
A discounted loan is a financial instrument offered or traded for less than its face value. This entry covers its types, applications, and examples.
Down Tick: Sale of a Security at a Lower Price
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'.
Each Way Commission: Understanding Broker Involvement on Both Sides of a Trade
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: Definition and Applications
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.
Exercise Price: The Amount at Which an Option can be Exercised
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.
Fail to Deliver: A Comprehensive Overview
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.
Fail to Receive: An Overview
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.
Fall Out of Bed: Sharp Drop in Stock Price
Explaining the phenomenon where a stock's price drops sharply, typically due to negative corporate developments, such as failed takeovers or underwhelming profits.
Flat: Multiple Meanings and Usages
An in-depth exploration of the term 'flat' covering various contexts in finance, real estate, trading, and more.
Floating Supply Bonds and Stocks: Understanding Market Liquidity
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.
Fractional Share: Unit of Stock Less Than One Full Share
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.
Futures Contract: Agreement to Buy or Sell Specified Assets at a Future Date
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.
Futures Market: A Commodity Exchange for Futures Contracts
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.
Futures Transaction: Understanding Hedging Mechanism
An in-depth exploration of futures transactions in hedging scenarios, encompassing definitions, examples, historical context, and related terminologies.
Going Short: Selling a Stock or Commodity That the Seller Does Not Have
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.
Hammering the Market: Intense Selling of Stocks Due to Speculated Market Drop
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.
Hot Stock: Definition and Key Insights
A comprehensive article that explains the dual meaning of 'Hot Stock' in finance and provides detailed insights, historical context, and related terms.
In The Money: Options Contracts
Detailed explanation of 'In The Money' options, including definitions for call and put options, calculations, examples, historical context, and FAQs.
Index Options: Calls and Puts on Indexes of Stocks
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.
Last Sale: Most Recent Trade in a Particular Security
The 'Last Sale' refers to the most recent trade of a particular security, distinct from the closing sale at the end of a trading session.
Leader: Stock or Group of Stocks at the Forefront of a Market Movement
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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