Futures trading
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Understanding Delivered Ex Ship (DES) Incoterm | Definition & Explanation
What Is Delivered Ex Ship (DES)? Delivered ex-ship (DES) was a trade term that required a seller to deliver goods to a buyer at an agreed port of arrival. The seller met its obligation upon del
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Cross Trade Explained: Definition, Legality & Broker Practices
What Is a Cross Trade? A cross trade is a practice where buy and sell orders for the same asset are offset without recording the trade on the exchange. It is an activity that is not permitted o
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Banking vs. Trading Drawdown: Understanding the Key Differences
Drawdown in Banking vs. Drawdown in Trading: An Overview The term drawdown appears in both the banking world and the trading world, but it has very different meanings within each
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Understanding Underlying Assets: A Comprehensive Guide
What is an Underlying Asset Underlying asset are the financial assets upon which a derivative’s price is based. Options are an example of a derivative. A derivative is a financial ins
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Understanding Tick Size: Definition & Trading Implications
What Is Tick Size? Tick size refers to the minimum price movement of a trading instrument in a market. The price movements of different trading instruments vary, with their tick sizes represent
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Short Covering: Understanding Buy-to-Cover Strategies
What Is Short Covering? Short covering refers to buying back borrowed securities in order to close out an open short position at a profit or loss. It requires purchasing the same security that
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Shareholder Activism: Understanding and Impact
What Is a Shareholder Activist? A shareholder activist is a person who attempts to use their rights as a shareholder of a publicly-traded corporation to bring about change within or for th
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Proprietary Trading: Definition, Strategies & Risks
What is Proprietary Trading? Proprietary trading refers to a financial firm or commercial bank that invests for direct market gain rather than earning commission dollars by trading on behalf of
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Understanding Counterparties in Financial Transactions: A Comprehensive Guide
What is a Counterparty? A counterparty is the other party that participates in a financial transaction, and every transaction must have a counterparty in order for the transaction to go through
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Understanding Financial Clearing: A Comprehensive Guide
What Is Clearing? Clearing is the procedure by which financial trades settle; that is, the correct and timely transfer of funds to the seller and securities to the buyer. Often with clearing, a
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Breakeven Point (BEP): Definition, Calculation & Importance
What Is the Breakeven Point (BEP)? The breakeven point (break-even price) for a trade or investment is determined by comparing the market price of an asset to the original cost; the breakeven p
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Average Daily Trading Volume (ADTV): Definition & Significance
What is Average Daily Trading Volume (ADTV)? Average daily trading volume (ADTV) is the average number of shares traded within a day in a given stock. Daily volume is how many shares are traded
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Shareholder Rights: Understanding Your Privileges as a Stock Owner
What Are Shareholder Rights? If you just bought stock in Disney, as a part-owner of the company, does that mean you and the family can hit Disneyland for free this summer? Do Anheuser-Busch&nbs
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Spot Market Explained: Immediate Delivery of Financial Instruments
What Is a Spot Market? The spot market is where financial instruments, such as commodities, currencies, and securities, are traded for immediate delivery. Delivery is the exchange of cash
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Spot Rate Explained: Understanding Immediate Market Prices
What Is the Spot Rate? The spot rate is the price quoted for immediate settlement on an interest rate, commodity, a security, or a currency. The spot rate, also referred to as the spot price, i
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Pre- and Post-Market Trading: A Guide for Beginner Investors
Novice stock traders know the stock market has regular trading hours. Unless its a holiday, the market is open for business between 9:30 a.m. and 4 p.m. Monday to Friday. Billions of shares
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Understanding Financial Speculation: Risks & Potential Rewards
What is Speculation? In the world of finance, speculation, or speculative trading, refers to the act of conducting a financial transaction that has substantial risk of losing value but also hol
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Short Squeeze Explained: Understanding & Avoiding the Risk
What Is a Short Squeeze? A short squeeze is an unusual condition that triggers rapidly rising prices in a stock or other tradeable security. For a short squeeze to occur the security must have
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Notional Value in Derivatives: Definition & Importance
What Is Notional Value? Notional value is a term often used to value the underlying asset in a derivatives trade. It can be the total value of a position, how much value a position control
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Liquidity Explained: Understanding Cash Conversion & Market Efficiency
What Is Liquidity? Liquidity refers to the efficiency or ease with which an asset or security can be converted into ready cash without affecting its market price. The most liquid asset of all i
Futures trading
- Coffee ETFs: Invest in Coffee Futures with JO & CAFE
- Renewable Energy Certificates (RECs): Understanding & Benefits
- Understanding Underlying Assets: A Comprehensive Guide
- Contango vs. Backwardation: Understanding Futures Curve Dynamics
- Futures Contracts Explained: Notional Value, Tick Size & Key Specifications
- S&P 500 Futures Break 3200: A Bullish Outlook for 2020?
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Mastering Life: Strategies for Achieving Success and FulfillmentLife is a series of games. Sometimes you lose, sometimes you win. We all know this. And yet, we often keep on playing games we lose. Why not play to win? Don’t you enjoy winning? I do. You know ...
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Monetize Your Home: Proven Strategies for Passive Incomediv.cust...
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First Job Search: 4 Proven Tips for New GraduatesHere's how to tackle your job s...
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Roth IRA Benefits for Young Savers: Maximize Tax-Free GrowthMore savers are embracing the tax-advantaged accounts, and many will contribute leading up to tax day. Young savers are flocking to Roth IRAs. They are taking the advice of parents, workplace financia...