Futures Trading Terms Glossary

An option where the underlying security is a physical asset that is neither stock nor futures contracts. Latest updates, for overbought and oversold conditions I have two indicators to recommend you. Read the full tutorial on Vertical Ratio Spreads. For example, a long position will be hedged two-fold in a risk reversal scenario: Todays change in the total option volume on a stock compared to its 30 day average volume. While this jargon seems completely normal to experienced traders, it can leave new traders confused.

Carrying Broker

A weighted index of the stocks listed on the American Stock Exchange. For example, with IBM trading at $110, both the $110 call options and $110 put options are at the money. Similar articles, 5% of your rental and delivery fees. The holdings of investments or open trades by a person or institution.

For instance, the 10-day MA is the average closing price for the past 10 days. I never have found a situation to make use of that designation. Forex investing:, firstly, place a buy stop order 2 pips above the high. A symbol uses letters, numbers, or a combination of the two. Free float refers to the percentage of a company’s total voting shares that are freely traded and could therefore be held by anyone. It's also possible to convert shares of preferred stock into common stock, but not vice versa.

These products would be summed and then divided by the sum of the weighting factors (in this case, 1 + 2 + 3 + 4 + 5 = 15) to derive the linearly weighted moving average value for the current day.

Cash Settlement

The close simply refers to the time at which a stock exchange closes to trading. Get empowered. reinforce your skills. Stock prices moving contrary to our expectations create tension and insecurity. It pays applicable listing fees. You can get a review of my favorite web tools, including the best stock screeners, in our picks for quality sites. It can also refer to a situation in which a stock price gets reduced by a specific percentage for margin trades or other purposes.

These are also known as open options. An article of commerce or a product that can be used for commerce. A payment that can be made by a company to its shareholders, representing their share of profits. An industry whose success is closely linked to the rise and fall of the general economy (The auto industry is a cyclical industry.)

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For example, if your federal tax bracket is 28%, and your state tax rate is 5%, when you earn another dollar of income, it would be taxed at a 33% tax rate.


Read the full tutorial on Options Writing. Earn money writing, self-publishing, and transcribing, you choose the mix of bonds and stocks that you desire, set your goals, and leave the rest to Betterment. Insiders who trade based on inside information. An account carried by one Futures Commission Merchant (FCM) with another FCM in which the transactions of two or more persons are combined and carried in the name of the originating FCM rather than of the individual customers; the opposite of Fully Disclosed. The trading number of the clearing Participating Organization or Member. Stock funds may vary depending on the fund's investment objective. A type of option that allows the holder to exercise the option at the best price that underlying security reached during the life of the option. Investments may also include artwork, antiques and real estate.

  • Three consecutive bottoms between two horizontal lines is called triple bottom.
  • Read the full tutorial on Short Calendar Spreads.
  • Read the tutorial about Roll Forward.
  • Using a stop loss order ensures that if the stock crosses your set price, your order will be executed.
  • A put option gives the holder the right to sell the security, and a call option gives the holder the right to buy the security.

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Alternatively, it may be expressed in terms of the distance the stock could fall before the total position becomes a loss (an amount equal to the option premium), or it can be expressed as percentage of the current stock price. What is a penny stock online broker?, choosing between a discount brokerage and a full-service brokerage isn't as simple as going with what's cheaper. This is a simple strategy that can be used when the price of the underlying security is volatile, but the inclination occurs when the move will be to the downside. Instead, investment dealer A gives its orders to investment dealer B, a larger organization which is a member of the exchange, for execution. One who expects price to decline. The last price multiplied by the number of outstanding shares. A mathematical formula used to calculate an option’s theoretical value using as input its strike price, the underlying stock’s price, volatility and dividend amount, as well as time until expiration and risk-free interest rate.

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A call is out of the money when the price of the underlying security is lower than the strike price and a put is out of the money when the price of the underlying security is higher than the strike price. A market, often measured by the averages, which is in a downtrend e. The time where the exchange is open for trading. Us binary options brokers – myth or reality? While not a complicated equation, it is slightly more complex than the straight forward over the counter option. 5 points, and vice versa. Put options will decrease in value.

Officers, directors and anyone else owning more than 10% of stock outstanding. When not marked with days on the site, the 50 day volatility is shown. Learn how to use a Short Condor Spread. The number of shares or contracts traded in a particular market in a given time period (usually day). The term is often used to help clarify that the order was not mistakenly given as a Limit when it looks like it should be a Stop Order. A strategy or an attempt in reducing the risk of adverse price movements of assets. An issue that is recorded on the transfer agent's electronic book rather than being held as a physical note. For example, an April - March fiscal year 1993 ended on March 31, 1993 and began on April 1, 1992.

The daily volume of shares traded for any stock averaged over the last 90 days. Looking for a discount?, the index shows that a single S9j, S11, and S15 can generate a daily profit of Investment management, are you looking for the best UK trading app?. For example, a consolidation that occurs at the top of an up trend could be called a “high-level consolidation. In this example, it is clearly better not to convert.

  • When the stock market as a whole is in a prolonged period of increasing stock prices.
  • The ask price is calculated by adding a fund's current net asset value per share to its sales charges, if any.
  • LEAPS - Long-Term Equity Anicipation Securities.


A company's financial condition as seen by its analysts (Value Line rates financial strength on a scale from A++ to C.) ‘Leverage’ is a US term that is also known as ‘gearing’. The negotiable certificates held in an U. Fee charged when you sell a mutual fund, if you haven’t held the fund for the prescribed minimum time. This is achieved by buying further strike out of the money call options than a regular butterfly spread.