Weekend trading with IG definition. The metric tells you the profit generated by each dollar or other unit of currency employed. In financial trading, the term asset relates to what is being exchanged on markets, such as stocks, bonds, currencies or commodities. D Back to the top. Gross margin, or gross profit margin, is a way of measuring the amount of profit a company has left after subtracting the direct costs associated with selling its goods and services. It is used to advise your broker to execute a trade when an asset reaches a specific price. EDSP stands for exchange delivery settlement price, and refers to the price at which exchange-traded derivative contracts are settled.
Acquisition definition
View more search results. From beginners getting acquainted with the world of investing to experts with decades of experience, all traders need to learn — or review — the meanings behind a huge number of terms on an almost daily basis. When one company decides to take over another one, it is referred to as an acquisition. The acquiring company will do this by purchasing either the majority or entirety of the ownership stake of the bwst being taken. IG alerts — also known as trading alerts — allow you to set specific criteria and be notified immediately once that criteria has been met.
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View more search results. From beginners getting acquainted with the world of investing to experts with decades of experience, all traders need to learn — or review — the meanings behind a huge number of terms on an almost daily basis. When one company decides to take over another one, it is referred to as an acquisition.
The acquiring company will do this by purchasing either the majority or entirety of the ownership stake of the company being taken. IG alerts — also known as trading alerts — allow you to set specific criteria and be notified immediately once that criteria has been met.
There are three main types: economic announcements, price alerts and indicator alerts. The alpha can be positive or negative, depending on its proximity to the market. Amortisation is the process of spreading the repayment of a loan, or the cost of an intangible asset, over a specific timeframe. This is usually a set number of months or years, depending on the conditions set by banks or copyright agencies. Amortisation will often incur interest payments, set at the discretion of the lender.
An annual general meeting AGM is a yearly gathering between the shareholders of a company and its board of directors. Arbitrage in trading is the practice of simultaneously buying and selling an asset to take advantage of a difference in price. The asset will usually be sold in a different market, different form or with a different financial product, depending on how the discrepancy in the price occurs. The ask refers to the price at which you can buy an asset or security from a seller.
It can be variously referred to as ask, the ask, or asking price. An asset class is a category of financial best app for defining stock trading terms — these can be physical assets or financial assets. The instruments are grouped into asset classes based on whether they show similar characteristics, behave in the same way on the market, or are governed by the same laws and regulations.
An asset is an economic resource which can be owned or controlled to return a profit, or a future benefit. In financial trading, the term asset relates to what is being exchanged on markets, such as stocks, bonds, currencies or commodities. At the money ATM is a term used to describe an options contract with a strike price that is identical to the underlying market price.
At the money options see a lot of trading activity, because they are so close to becoming profitable. An auction market is an environment that facilitates competition between buyers and sellers. In an auction market, buyers indicate the maximum price that they are willing to pay for an asset, while sellers express the lowest price that they would be comfortable accepting.
Automated trading — also known as algorithmic trading — is the use of algorithms for making trade orders. In trading the term base currency has two main definitions: the first currency quoted in a forex pair, or the accounting currency used by banks and other businesses. A base rate is the interest rate that a central bank — such as the Bank of England or Federal Reserve — will charge commercial banks for loans. The base rate is also known as the bank rate or the base interest rate.
A basis point is equal to one hundredth of one percent, or 0. Bears are traders who believe that a market, asset or financial instrument is heading in a downward trajectory. In that regard, they hold an opposite view to bulls, who believe that a market is going upwards. When the market is on a sustained downward trajectory, with little optimism from traders to bring about a rally, it is referred to as a bear market. Being bearish in trading means you believe that a market, asset or financial instrument is going to experience a downward trajectory.
Being bearish is the opposite of being bullish, which means that you think the market is heading upwards. In trading and investing, the bid is the amount a party is willing to pay in order to buy a financial instrument. Blue-chip stocks are the shares of companies that are reputable, financially stable and long-established within their sector. Over time, the companies that are considered blue chip tend to change, so the exact definition of what is required for blue-chip status can be vague.
However, a company that is considered blue chip will tend to be at or near the very top of its sector, feature on a recognised index, and have a well-known brand.
Bollinger bands are a popular form of technical price indicator. They are made up of an upper and lower band, set either side of a simple moving average SMA. Each band is plotted two standard deviations away from the SMA of the market, and they are capable of highlighting areas of support and resistance. Bond trading is one way of making profit from fluctuations in the value of corporate or government bonds. Many view it as an essential part of a diversified trading portfolio, alongside stocks and cash.
Bonds are a form of financial investment that involve lending money to an institution for a fixed period of time. They usually come in two varieties: corporate bonds and government bonds, depending on the type of institution you are lending to.
While book value reflects what a business is worth according to its financials its booksmarket value is the worth of a company according to financial markets — also known as its market capitalisation.
The calculation for market value is the current market price per share multiplied by the total number of outstanding shares. Variously, it can be used to refer to the net earnings or earnings per share EPS of a business. Brent crude — also referred to as Brent blend — is one of three major oil benchmarks used by those trading oil contracts, futures and derivatives.
A broker is an independent person or a company that organises and executes financial transactions on behalf of another party. They can do this across a number of different asset classes, including stocks, forex, real estate and insurance. A broker will normally charge a commission for the order to be executed.
Bulls are speculators who believe that a market, instrument, or sector is going on an upward trajectory. When a market, instrument or sector is on an upward trend, it is generally referred to as a bull market. Buying a financial instrument means taking ownership of it from someone else, whether it is a commodity, stock or another asset.
Cable is one of a few slang terms for different currency pairs; in this case referring to British pound sterling against the US dollar. Occasionally, people also refer to the price of the British pound as cable. A call option is a contract the gives the buyer the right but not the obligation to buy a specific an asset at a specific price, on a specific date of expiry. The value of a call option appreciates if the asset’s market price increases.
Capital expenditure, or CAPEX, is the term used for the money spent by businesses on physical assets. Capital gains are the profits made from the buying and selling of assets.
They are made when traders sell assets — like shares or commodities — for more than they originally paid for. The opposite of a capital gain is a capital loss. Capital gains tax or CGTis the tax levied by the government on the profits made from financial asset sales. CGT regulations and levels vary from country to country. When a trader sells an asset at a lower price than they initially paid for it, they have incurred a capital loss.
As such, capital loss is the opposite of capital gain: the profit made when an asset is sold for more than originally paid. It can refer to a single project or the entire business. Chargeable gain refers to a profitable change in the price of an asset — measured between the time when the assets were purchased, and the time when they are sold.
When applied to the financial markets, most profits — whether they are a result of going long or going short — are subject to capital gains tax CGT. They are also commonly known as technical analysts, or technical traders. This price is often determined by an auction. Best app for defining stock trading terms commodity is a basic physical asset, often used as a raw material in the production of goods or services.
The cost of maintaining an investment position is often referred to as the cost of carry or carrying charge. It can come in many forms, including interest on margins or the loans used to make the trade, or the cost of storage and insurance associated with holding a commodity. A covered call is when a trader sells or writes call options in an asset that they currently have a long position on.
They are also known as buy-writes. CPI stands for consumer price index, an average of several consumer goods and services that are used to give an indication of inflation. Crystallisation is the term used when a trader or business closes a position and then reopens an identical position immediately. Currency appreciation is when one currency in a forex pair increases in value relative to the other currency in the pair. A currency future is a contract that details the price at which a currency could be bought or sold, and sets a specific date for the exchange.
A currency peg is a governmental policy of fixing the exchange rate of its currency to that of another currency, or occasionally to the gold price. It can sometimes also be referred to as a fixed exchange rate, or pegging. Custodian has a particular significance in relation to IG’s platform.
Here, we define custodian in general investing and explain what it means to you when trading with IG. Dark pools are networks — usually private exchanges or forums — that allow institutional investors to buy or sell large amounts of stock without the details of the trade being released to the wider market. A day order is a type of order, or instruction from a trader to their broker, to buy or sell a certain asset. Day trading is a strategy of short-term investment that involves closing out all trades before the market closes.
Debt ratio is an indication of how much debt a company is holding, when compared to the value of its assets. It can also be applied to individuals: in which case it is the cost accrued by their debt compared to total income each year.
It can also sometimes be referred to as a hedge ratio, and is most often used when dealing in options. It is the opposite of appreciation. Derivatives are financial products that derive their value from the price of an underlying asset.
Derivatives are often used by traders as a device to speculate on the future price movements of an asset, whether that be up or down, without having to buy the asset. A digital option is a type of option that offers the opportunity of a fixed payout if the underlying market price exceeds a pre-determined limit, called the strike price. A dividend is the portion of profit that a company chooses to return to its shareholders, usually expressed as a percentage. When trading, DMA stands for direct market access.
It is calculated by dividing the total amount of profit generated in a period, by the number of shares that the company has listed on the stock market. EDSP stands for exchange delivery settlement price, and refers to the price at which exchange-traded derivative contracts are settled.
In trading, equity can mean several different things.
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ADR definition
Put option definition. For beginning and passive investors, the TD Ameritrade Mobile app offers plenty of power for your needs. A financial instrument is a monetary contract between two parties, which can be traded and settled. Annual general meeting AGM definition. Credit spread definition. Multilateral trading facilities MTFs offer traders and investment firms an alternative to traditional exchanges. Bullish traders believe, based on their analysis, that a market will experience an upward price movement. Acquisition definition. Offer definition. Random walk theory definition. Rate of return definition. On exchange definition. Weekend trading with IG definition. Stop order terme.
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