The spot price is the current market price for a commodities contract. It is the price at which a commodities contract can be bought or sold for immediate delivery. The spot price fluctuates throughout the day as market conditions change. What is spot market simple words? The spot market is the market in which spot … Read more
A ticker tape is a continuous stream of market data displayed on a screen that shows the latest trade price for a security. The term is derived from the old telegraph machines that were once used to send stock prices from exchanges to brokerage firms. Ticker tapes are still used today, but they have been … Read more
A central counterparty clearing house (CCP) is an entity that provides clearing and settlement services for a wide range of financial instruments. CCPs are typically used in derivative markets, where they act as an intermediary between two counterparties in a transaction. This ensures that both parties fulfill their obligations under the contract and reduces the … Read more
A trade signal is simply an indication that a trade should be executed. Trade signals can be generated by humans or by computers. Regardless of the source, all trade signals share one common goal: to identify opportunities in the market and provide traders with the information they need to execute a trade. There are two … Read more
A stopped out trade occurs when an order is executed at a price beyond the trader’s stop-loss level. This can happen due to a number of reasons, including a sudden change in market conditions or a mistake in the order entry. A stopped out trade will often result in a loss for the trader. How … Read more
An optimization definition is a statement or set of statements that define an optimization problem. The definition includes the set of optimization variables, the set of constraints, the objective function, and any other information necessary to completely define the problem. What is optimization of a function? An optimization of a function is finding the input … Read more
In finance, change is defined as the rate of return on an investment over a period of time. Change can be measured in absolute terms (e.g. dollars) or in relative terms (e.g. percentage). Change can also be described as the difference between the current price of an asset and its price at some previous time. … Read more
A level 1 definition is a definition that is used to describe the most basic level of trading. This level of definition is typically used by novice traders who are just starting out in the market. The level 1 definition covers the most basic concepts and terms that are used in the market. This level … Read more
A listed security is a security that is traded on a stock exchange. Listed securities include stocks, bonds, and other securities. Stock exchanges list securities so that investors can buy and sell them easily. Listing provides liquidity to the market and gives investors confidence that they can buy and sell securities quickly and at a … Read more
Notional value is the face value of a financial instrument, without taking into account the instrument’s market value. The notional value is used to calculate certain types of financial risks, such as credit risk and exposure to interest rate changes. For example, the notional value of a bond is its face value, while the notional … Read more
