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Igor
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Everything posted by Igor
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The biggest effect of Decimalization has been the occurrence of tighter spreads. This is large because price quotes can be more accurate, rather than having to round up or down to the next fraction.
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Traders use the term Dead Cat Bounce to describe renewed selling opportunities in a downtrend. The small Bound gives bearish traders an opportunity to get short at slightly higher prices.
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The Days To Cover looks to measure the buying pressure that is likely to be seen in the future. This liklihood is based on the fact that outstanding short positions must be bought back at a later date.
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Dark Pool Liquidity has its name because the details of Dark Pool trades are not available to the public. Some traders feel that this secrety is unfair to some traders and many groups have lobbied for these details to be make public.
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Daisy Chain are generally thought of as unscrupulous because buying activity is not based on actual bullish sentiment. These groups of traders are thought of as possessing an unfair advantage with respect to the rest of the market.
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Curbs In situations tend to be seen when price volatility is particularly active in a specific asset. Limitations are then placed on trading in order to being stability to an uncertain environment.
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Crossed Markets are seen in highly volatile situations, where prices are changing rapidly and it is difficult for brokers to match buyers and sellers. In these cases the spread is negative, whereas it is positive in most environments.
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The term Cover is important when understanding other trading terms, such as "Cover on a Bouce." In this case, a trader would close a short position on any major rallies from support.
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Every market transaction involves a buyer and a seller. If an investor is bullish on an asset, that investor will need to find a counterparty that is willing to sell the asset in order to enter into a position.
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It is impossible for asset prices to trade in one direction indefinitely. Because of this, Countermoves are always a feature of market activity and traders should prepare for these corrections accordingly.
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Convertible Hedging is used to provide market protection against unforseen market moves. If the stock price trades sideways,the investment collects gains from the convertible bond. If the stock price declines, the short position will make gains as well.
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Contrarian trading strategies are used by many traders looking to "buy low and sell high." This is in exact contract with breakout traders, who tend to trade with the main trend.
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As Continuous Net Settlements are being processed, generated reports document price changes in assets. In essence, this is a clearance system for stocks and bonds.
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Periods of Congestion generally cannot last very long in active and dynamic markets. Because of this, many technical analysis strategies assume that prices will move forcefully, once the Congestion range is broken.
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When actively trading it is important to adjust your orders based on the most current price information. Conditional Orders allow traders to avoid taking the wrong position if markets shift too far in one direction.
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Many commodities markets traders will speculate on changes in the Commodity-Product Spread. Typically, this occurs when commodity futures contracts are bought while product futures are sold.
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The closing price for an asset is critical in many forms of technical analysis. Because of this, exchanges must make a distinction between closing prices, as this is key for determining market sentiment on a given day.
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The closing price for an asset is critical in many forms of technical analysis. Because of this, exchanges must make a distinction between closing prices, as this is key for determining market sentiment on a given day.
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Clearing Brokers are very important in the asset markets because their knowledge of certain financial scenarios cannot be found in other entities. This knowledge contributes greatly to the efficient trading systems.
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Churning is viewed as a negative practice and can only be seen when a broker has the authority to place trades in a client's account. The way to avoid this risk is to avoiding giving trade control to other parties.
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Investors typically use China ETFs to gain exposure to emerging markets. These ETFs offer cheaper and more accissible alternatives for markets that have restrictions inplace for many typesof foreign investment.
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A Cat Spread is essentially a spread call option that insurance companies use to protect against downsides in catastrophe futures contracts. For these reasons, Cat Spreads can be thought of as a hedging strategy.
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Cash-And-Carry-Arbitrage generally requires tradres to buy a stock or currency and sell the same futures contract in the same asset. This is only possible when these markets are trading at different prices.
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A Cash-And-Carry Trade is also referred to as a "basis trade." These trades will generally involve the purchase of a stock or currency and the sale of a futures contract.
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It is important to consider CFOs when market coditions change, and your original trading plan is no longer valid. Without CFOs your early orders might be filled, and this can lead to losses.
