A trading floor is the area within a financial institution where trading activity takes place. The term can also be used to refer to the physical location of a particular exchange, such as the New York Stock Exchange (NYSE) trading floor. The trading floor is where market makers buy and sell securities. Market makers are … Read more
A punter is a person who makes a bet, or wager, on the outcome of a sporting event. The term is most commonly used in the United Kingdom and Ireland, where punters are often seen as an important part of the culture. In the United Kingdom, punters are often referred to as “the lifeblood of … Read more
Implementation shortfall is the difference between the price at which a trade is executed and the price that was originally quoted. It can occur when the market moves against the trader before the trade is executed, or when the trader is unable to get the full amount of the security that was originally quoted. What … Read more
An imbalance of orders is a term used to describe a situation where there are more buy orders than sell orders, or vice versa. This can occur for a number of reasons, including market conditions, changes in price, etc. When there is an imbalance of orders, it can often lead to a situation where the … Read more
When a trader antedates a trade, they are essentially trying to create a trade that will take place in the future. This can be done for a number of reasons, but the most common is to try and take advantage of a situation that is not yet fully developed. For example, a trader might antedate … Read more
The current price definition is the most recent price of a security or commodity traded in the market. This price is used to calculate the current value of an investment portfolio. The current price can be used to determine the buy or sell price of a security. How do you find the current stock price … Read more
Price discovery is the process of finding the best price for a financial instrument or commodity. It is the process of uncovering the true price of an asset through supply and demand. Price discovery is a key component of efficient markets and helps to ensure that prices are fair and transparent. Price discovery can occur … Read more
A listed company is a company that is quoted on a stock exchange. This means that shares in the company can be bought and sold by members of the public. Listed companies are usually large, well-established businesses. They are regulated by the stock exchange and have to meet certain requirements, such as publishing regular financial … Read more
A trading book is a portfolio of financial instruments held by a financial institution for the purpose of trading. The instruments in a trading book are bought and sold for many reasons including to take advantage of market movements, to hedge other positions, or to provide liquidity to the market. The term “trading book” is … Read more
The net change definition is the difference between the current price of a security and its price at the previous close. For example, if a security is currently trading at $10 and its previous close was $9, the net change would be $1. Net change is often used as a measure of market activity or … Read more
