Trading

Listed Option: Exchange-Traded Financial Contract
An in-depth exploration of listed options, their types, uses, historical context, and regulatory framework in financial markets.
Listed Security: Stocks or Bonds Traded on Exchanges
A comprehensive overview of listed securities, including their definitions, types, historical context, and differences from unlisted securities.
Long: Understanding Long Positions in Finance and Investing
A comprehensive overview of the long position in finance and investing, including definitions, examples, historical context, and related terms.
Long Position: Investment Strategy in Ownership
A comprehensive overview of the long position, its definitions, types, implications in trading and investing, differences with short positions, and related terms.
Manipulation: Financial and Psychological Contexts
Manipulation refers to buying or selling securities to create a false appearance of active trading, influencing other investors, or controlling outcomes through shrewdness or influence.
Margin Call: Financial Demand Triggered by Security Price Decline
A comprehensive exploration of Margin Call, explaining its definition, types, considerations, examples, historical context, applicability, related terms, and more.
Market: Comprehensive Overview and Definitions
Detailed exploration of the concept of Market, including definitions, types, examples, historical context, and related terms.
Market Makers: Dealers in the Securities Exchange
Market makers are dealers in the securities exchange who buy and sell securities for their own account to maintain an orderly market in the specific securities they manage.
Market Order: Immediate Execution Order for Securities
A detailed overview of a market order, an immediate execution order to buy or sell a security at the best available price.
Market Price: Definition and Significance
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.
Member Firm: Brokerage Affiliation with Stock Exchange
A comprehensive examination of a Member Firm, a brokerage firm holding membership on a major stock exchange through an employee's name, its implications, historical context, and related terms.
Merchandise Broker: An Intermediary in Trade Transactions
A Merchandise Broker acts as an agent for buyers and sellers of goods, negotiating sales and earning commissions without taking possession of the merchandise.
Minus Tick: Definition and Insights
A comprehensive guide to understanding the concept of a Minus Tick, its significance in the stock market, and related terms like Downtick.
Movement: Price Changes or Fluctuations in a Market
A detailed and structured explanation of market movements, covering both price fluctuations and political action, including their implications and examples.
Net Change: Understanding Daily Price Fluctuations
Net Change refers to the difference between the last trading price of a stock, bond, commodity, or mutual fund from one trading day to the next.
New York Cotton Exchange: An Overview of the Cotton Futures Market
The New York Cotton Exchange (NYCE) is a commodities exchange, now a subsidiary of the New York Board of Trade (NYBOT) since 1998, specializing in cotton futures and options contracts.
New York Stock Exchange (NYSE): Overview and Significance
An in-depth look at the New York Stock Exchange (NYSE), its structure, history, operations, and significance in global finance.
Nonmember Firm: Brokerage Firm Not A Member of An Organized Exchange
A brokerage firm that is not a member of an organized exchange and executes trades through member firms, regional exchanges, or in the third market.
Odd Lot: Securities Trade
An Odd Lot refers to stocks or bonds traded in blocks of fewer than 100 shares. It is different from a round lot, which usually consists of 100 shares. This term is significant in trading as it can affect liquidity and transaction costs.
On Margin: Financial Trading Concept
An in-depth explanation of the concept 'On Margin' in financial trading, including its definition, applications, and considerations.
Open Order: Buy or Sell Order for Securities
An Open Order is a buy or sell order for securities that has not yet been executed or canceled. It may be classified as a Good-till-Canceled order, among other types.
Option Holder: Buyer of Call or Put Options
A comprehensive overview of what it means to be an option holder, including definitions, types, examples, and related terms.
Optionor: One Who Gives or Sells an Option
An in-depth look at the term optionor, providing insights into its definition, implications in finance and real estate, and historical context.
Or Better (OB): Securities Trading Indication
A detailed explanation of 'Or Better (OB)' as an instruction used in limit orders to indicate that a broker should execute the order at a price better than the specified limit, if possible.
Out of the Money Option: Understanding the Basics
An in-depth explanation of Out of the Money (OTM) options, including definitions, examples, and important considerations in options trading.
Outcry Market: A Definition and Exploration
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.
Over The Counter (OTC): Understanding Non-Exchange Marketplaces
A comprehensive overview of Over The Counter (OTC) markets, exploring their structure, significance, types, examples, and differences with exchange-traded markets.
Overbought: Technical Analysis and Market Conditions
Overbought conditions occur when a security has experienced an unexpectedly sharp price rise and is vulnerable to a correction. Understanding this concept can help investors anticipate potential market movements.
Overvalued Stock: Expected Price Drop
An overvalued stock is a stock whose current price does not seem justified given its financial performance and market conditions. It is therefore expected that the stock price will drop.
Panic Buying/Selling: Understanding Market Reactions
A comprehensive guide to understanding panic buying and selling, the triggers, effects, and strategies to manage such market reactions.
Partial Delivery: An Overview
Partial delivery occurs when a broker does not transfer the full amount of a security or commodity as specified in a contract. This article explores the concept, implications, and related terms.
Physical Commodity: A Comprehensive Overview
Understand the concept of Physical Commodity, its significance in the market, and examples such as corn, cotton, gold, oil, soybeans, and wheat. Explore the distinctions between spot and futures markets.
Price-Earnings (P/E) Ratio: Financial Metric for Valuation
The Price-Earnings (P/E) Ratio is a crucial financial metric used to evaluate the valuation of a company's stock by measuring its current share price relative to its per-share earnings.
Price/Book Ratio: Evaluation Metric for Stocks
An in-depth exploration of the Price/Book Ratio, an essential metric for evaluating whether a stock is undervalued or overvalued.
Proceeds: Understanding the Financial Term
An in-depth exploration of proceeds, focusing on funds received by borrowers and sellers after deductions.
Profit Taking: Financial Strategy
An in-depth exploration of profit taking as a strategy employed by traders to secure gains by selling assets following a short-term price increase, and its impact on market movements.
Publicly Held Corporation: Comprehensive Overview
A Publicly Held Corporation, also known as a publicly traded company, is a corporation that has its common stock registered on a national stock exchange. This detailed entry explores its characteristics, types, advantages, regulations, and more.
Put to Seller: Financial Terminology
Understanding 'Put to Seller': Used when a Put Option is exercised, obligating the writer to buy the underlying shares at the agreed-upon price.
Quant: A Professional with Numerical and Analytical Skills
A Quant is a professional with expertise in mathematics, statistics, and computer science who provides numerical and analytical support services, primarily in finance and trading.
Reading the Tape: Monitoring Stock Prices for Market Insights
A detailed examination of Reading the Tape, a method of monitoring changes in stock prices displayed on ticker tapes to gauge immediate market conditions of stocks, industry groups, or the market as a whole.
Regular-Way Delivery (and Settlement): Completion of Securities Transactions
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.
Regulated Futures Contract: Defined and Explained
Learn about regulated futures contracts, their structure, significance, historical context, and how marking to market operates within these financial instruments.
Riskless Transaction: Trade Guaranteeing a Profit
A riskless transaction is a trade that guarantees a profit to the trader who initiates it, usually by exploiting market inefficiencies. See also [Arbitrage].
Round Lot: Generally Accepted Unit of Trading on a Securities Exchange
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.
S&P 500: United States Stock Market Index
A comprehensive overview of the S&P 500, a widely-used stock market index in the United States representing 500 of the largest companies.
Secondary Market: Comprehensive Overview
Detailed explanation of the Secondary Market where securities are traded post original issuance, encompassing exchanges and over-the-counter markets, as well as the trading of money market instruments.
Securities and Commodities Exchanges: National Trading Platforms for Financial Instruments
An in-depth look into organized, national exchanges where securities, options, and commodities futures contracts are traded by members for their own accounts and the accounts of customers.
Securities Markets: General Term for Markets in Which Securities are Traded
Comprehensive overview of securities markets, including organized exchanges and over-the-counter markets, their structure, functions, and significance.
Selling Short Against the Box: A Short Selling Strategy
An extensive guide to the financial strategy of selling short against the box, including definitions, types, examples, historical context, and related terms.
Short Bond: Defined and Explained
A comprehensive explanation of short bonds, their types, financial implications, and applications in finance.
Short Sale: Definition and Mechanisms
An in-depth exploration of short sales in securities and real estate, outlining the processes, risks, and implications.
Short Squeeze: Crucial Financial Phenomenon
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.
Specialist: Roles and Responsibilities
A comprehensive guide to understanding the concept of a Specialist, including definitions, types, historical context, examples, and its applicability in various fields.
Speculation: Purchase of Property or Security for Quick Profit
Detailed explanation of speculation in financial markets, including types, examples, comparisons with gambling and investment, and historical context.
Split Commission: Definition and Context
A comprehensive guide on split commission, detailing how commissions are divided between brokers and financial professionals, with examples and historical context.
Spot Commodity: Immediate Delivery Trading
Detailed explanation of Spot Commodity trading, distinctions from Futures Contracts, and the dynamics of the Spot Market.
Spot Price: Current Delivery Price in the Spot Market
A detailed overview of the spot price, its significance in finance and trading, the factors influencing it, and its comparison to futures prices.
Standing Order: Repeated Shipments of Goods
Standing orders facilitate the repeated shipment of goods without the need for specific reorders, adhering to predetermined quantity and time limitations.
Stop Order: Trading Mechanism in Stock Markets
A stop order is an instruction to a broker to buy or sell a security once it reaches a specified stop price, aimed at protecting profits or limiting losses.
Street Name: Custody of Securities
A term referring to securities held in the name of a broker or another nominee instead of the customer, facilitating easier transfer at the time of sale.
Support Level: Critical Price Point in Financial Markets
An in-depth exploration of support levels, a key concept in technical analysis, where a security price tends to halt its decline due to increased demand.
Suspended Trading: Temporary Halt in Security Trading
Suspended Trading refers to the temporary halt in trading a particular security, often in advance of major news announcements or to correct imbalances of buy and sell orders.
Ticker Symbol: Financial Market Identifier
A Ticker Symbol is a unique series of letters assigned to a security or stock for trading purposes on a particular stock exchange.
Tight Market: A Comprehensive Overview
A detailed examination of tight markets, characterized by active trading and narrow bid-offer price spreads, in contrast to slack markets with inactive trading and wide spreads.
Topping Out: Understanding the End of a Bull Market
A detailed explanation of the concept of topping out in financial markets, including its significance, types, indicators, and historical context.
Tout: Aggressive Promotion of an Item
An in-depth look into the practice of touting, which involves aggressive promotion by corporate spokespeople, public relations firms, brokers, or analysts, and the ethical implications it has in the financial markets.
Trading Limit: Comprehensive Definition and Guide
An in-depth exploration of trading limits in financial markets, covering types, applications, and related concepts like fluctuation limits.
Trading Unit: Standard Quantities for Trading
A Trading Unit is the standardized number of shares, bonds, or other securities that is generally accepted for ordinary trading purposes on the exchanges.
Uncovered Option: A Comprehensive Guide
An in-depth exploration of uncovered options, including types, examples, risks, and historical context in finance.
Unit of Trading: Minimum Trading Units
Detailed exploration of the Unit of Trading, which constitutes the minimum number of shares, bonds, or commodities traded on an exchange.
Uptrend: Upward Direction in Prices
A detailed exploration of an uptrend, which represents the upward direction in the price of a stock, bond, or commodity futures contract, or the overall market.
Writing Naked: Strategy Used by an Option Seller
Detailed insight into the 'Writing Naked' strategy used by options sellers who do not own the underlying security. Includes definitions, implications, examples, and comparisons.
WT: Abbreviation for Warrant
An in-depth look at the abbreviation 'WT' commonly used in finance to refer to warrants, including definitions, types, historical context, and related terms such as subscription rights.
Aggregation: Meaning, Importance, and Effects
An in-depth explanation of aggregation, its significance, and its impact in financial markets and data consolidation.
Aroon Indicator: Formula, Calculations, Interpretation, and Limitations
Comprehensive guide on the Aroon Indicator, including its formula, calculations, interpretation, and limitations. Learn how to identify trend changes and assess the strength of market trends using this powerful technical indicator.
Ask Price: Definition, Mechanism, and Spread Variations
Comprehensive guide to understanding the ask price in financial markets, its operational mechanics, and the impact of different bid-ask spreads.
Axe in Securities Trading: Definition, Meaning, and Insights
A comprehensive guide to understanding the concept of 'Axe' in securities trading, including its definition, types, applications, and related terms.
Bear Call Spread: Comprehensive Overview and Detailed Examples of the Option Strategy
Learn about the bear call spread strategy, including its definition, types, special considerations, examples, historical context, applicability, comparisons, related terms, FAQs, and references.
Bear Spread: Overview, Types, and Examples of Options Strategies
A comprehensive look at bear spreads, covering their definition, types, practical applications, and detailed examples in options trading.
Binary Option: Definition, Trading Mechanisms, and Real-World Examples
Comprehensive overview of Binary Options, including definitions, trading mechanisms, real-world examples, historical context, and related terms, providing readers with in-depth knowledge and insights.
Block Trade: Comprehensive Definition, Mechanism, and Real-World Examples
Explore the intricacies of block trades in finance, including their definition, how they are executed, and real-world examples. Learn about the significance of block trades in the stock market, their impact, and key considerations.
Bollinger Bands: An Essential Technical Analysis Tool
A comprehensive guide to Bollinger Bands, a critical momentum indicator in technical analysis, depicting two standard deviations above and below a simple moving average.
Breakout: Definition, Meaning, Examples, and Implications
An in-depth exploration of breakouts in trading, covering their definition, significance, types, examples, and associated market signals.
Buy Stop Order: Definition and Practical Uses
A comprehensive guide to understanding buy stop orders, their practical applications, and key considerations for investors.

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