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The Rise Of STARTRADER

One Of The
World’s Fastest Growing Brokerage

The Rise Of STARTRADER

One Of The
World’s Fastest Growing Brokerage

US

Trading Glossary

Glossary trade refers to a type of trading strategy where traders use a predefined set of terms, definitions, or concepts to make informed decisions. It often involves industry-specific jargon, financial metrics, and analytical tools to navigate markets effectively.

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American option

An option that can be exercised any time before its expiration date.

Annual report

A yearly statement from a company that provides information on its financial performance, operations and strategy.

Annualised return

The investment’s return on an annual basis, considering the investment duration and any changes in its value over time.

Anonymous Trading

Simply put, anonymous trading is trading without disclosing the name of the participant in the market. 

Usually, larger traders choose this kind of trading in order not to show their strategy to smaller traders. By doing so, they prevent the prices from hiking if they are buying a big amount of certain shares, for example. 

Many stock exchanges, such as the London Stock Exchange, Toronto Stock Exchange, and NASDAQ, as well as dark pools offer anonymous trading.

Appreciation

Appreciation, in general terms, is an increase in the value of an asset over time. The increase can occur for a number of reasons, including increased demand or weakening supply, or as a result of changes in inflation or interest rates.

A currency is said to ‘appreciate’ when it strengthens in value in response to market demand.

One currency that appreciated during the middle of the 1990s was the yen. In 1995, it mounted to 80 yen per dollar.

Arbitrage

The process of buying an asset (such as shares) and then immediately selling it in a different market so as to profit from the difference.

 Arbitrageurs can exploit tiny differences in the quoted price of an identical instrument across different markets using very large-sized trades.

If the person buys a  stock for 50 USD at one exchange, then sells it at a different one for 55 USD, he would make profit without even risking money. 

Of course, such opportunities are rare as prices across exchanges are typically synchronized.

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