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Depreciation is the term given to the decline in an asset’s value, either due to market conditions or other factors like wear and tear. It is the opposite of appreciation.

 

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A derivative’s delta is defined as its price movement in relation to the change in the price of its underlying asset. It can also sometimes be referred to as a hedge ratio and is most often used when dealing with options.

 

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The debt ratio is an indication of how much debt a company is holding when compared to the value of its assets. It can also be applied to individuals: in which case it is the cost accrued by their debt compared to total income each year.

 

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Day trading is a strategy of short-term investment that involves closing out all trades before the market closes.

 

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