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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

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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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Asset Classes

An asset class is a category of financial instrument – these can be physical assets or financial assets. 

The instruments are grouped into asset classes based on whether they show similar characteristics, behave in the same way on the market, or are governed by the same laws and regulations.

Some examples of asset classes include metals, commodities, forex pairs, shares and indices.

Asset Under Management

Also known as AUM, it refers to the total value of financial assets that an investment company or bank manages on behalf of investors.

It’s basically a term used to describe how much assets a manager manages on behalf of the investors.

If a certain company has control over $10 billion of cash assets, $14 billion of fixed income, $20 billion of shares, and $4 billion of alternatives, its AUM would be $48 billion.

Asset-backed security (ABS)

A security backed by a pool of assets, such as mortgages, auto loans or credit card debt.

At Best

At best is one kind of order that traders place to sell or buy the price at the best price available. 

This market order often translates as instructions given to a broker to buy or sell the currency or instrument at the best rate that can be obtained, and as quickly as possible. 

With this order, no specific price is guaranteed. Yet, the broker executes the order according to the best price that can be obtained at the time. 

At OR Better

“At or better” is another kind of order. It gives instructions to the broker to buy or sell an asset or instrument at a certain value or over that value. 

Since there is a certain limit at which the order needs to be executed, it is considered a limit order. 

Based on that, this order might take a longer period to be executed and might even not be executed at all. 

For example, a trader wants to sell a share at 150 USD or above. If the value never reaches that limit, the order is not going to be executed. 

AT PAR

At par is the “face value” of an instrument. Here is what we mean by a face value: it is the value that was attributed, “printed” to a bond when issued. 

When the price fluctuates with the updates and changes in the market, investors often refer to the new price as above bar or below bar. 

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