. What is the Spot Market? The spot market is a financial market in which assets or commodities are traded for immediate delivery. This contrasts with the futures market, in which assets or commodities are traded for delivery at a later date. What are spot orders? Spot orders are market orders that are placed and … Read more
A cover is the purchase of an offsetting position in a security in order to close out an open position. The offsetting position can be in the same security or in a different security. For example, if an investor has a short position in a security, they can cover the position by buying the same … Read more
An inside quote definition is a quote that includes the bid and ask price for a security. The bid price is the price that a buyer is willing to pay for the security, while the ask price is the price that a seller is willing to accept for the security. The difference between the bid … Read more
A buy quote is the price a trader is willing to pay to buy a security. It is typically given as a bid price, which is the price a trader is willing to pay for the security. The ask price is the price a trader is willing to sell the security for. The spread is … Read more
The disposition is the decision to buy or sell an asset. This can be done for a number of reasons, including to take profits, to cut losses, or to rebalance a portfolio. The disposition may also be part of a larger strategy, such as buying on dips or selling into strength. What is disposition effect … Read more
A buy signal is a trigger that tells you to buy a security. It is generated by either a technical analysis tool or a trading system. A buy signal can be generated by a technical indicator, such as a moving average crossover, or by a trading system that uses a set of rules to determine … Read more
When you “close a position,” you are selling (or buying) an investment in order to end your current level of exposure to it. For example, suppose you own 100 shares of XYZ stock that you bought at $50 per share. If the stock price subsequently rises to $60 per share, you may choose to “close … Read more
Open Trade Equity (OTE) is the sum of all open positions’ unrealized gains or losses. It is important to monitor your OTE because it represents your true paper profit or loss in your account. If your account’s OTE is positive, then your account is profitable. If your account’s OTE is negative, then your account is … Read more
“Don’t Know (DK)” is a term used to describe a situation in which a trader is unsure of which direction the market will move. This often occurs when there is a lack of clear information or when the market is moving erratically. In these situations, it is often best to stay out of the market … Read more
Matching orders definition: An order is an instruction to buy or sell a security at a specified price. Orders can be placed with a broker-dealer by phone, online, or in person. A match occurs when a buyer’s order is paired with a seller’s order, and a trade is executed. The price at which the trade … Read more
