TOOLS TRADES - TOOLS TRADES

AT THE MONEY DEFINITION

Mon, 06 Apr 2020 12:39:34 +0000

At the money (ATM) is a term used to describe an options contract with a strike price that is identical to the underlying market price. At the money, options see a lot of trading activity, because they are so close to becoming profitable.

BASE RATE DEFINITION

Mon, 06 Apr 2020 13:27:53 +0000

A base rate is the interest rate that a central bank – such as the Bank of England or Federal Reserve – will charge commercial banks for loans. The base rate is also known as the bank rate or the base interest rate.

BEAR MARKET DEFINITION

Wed, 08 Apr 2020 12:13:07 +0000

When the market is on a sustained downward trajectory, with little optimism from traders to bring about a rally, it is referred to as a bear market.

BOND TRADING DEFINITION

Wed, 08 Apr 2020 12:13:52 +0000

Bond trading is one way of making a profit from fluctuations in the value of corporate or government bonds. Many view it as an essential part of a diversified trading portfolio, alongside stocks and cash.

BULL MARKET DEFINITION

Wed, 08 Apr 2020 12:16:30 +0000

When a market, instrument or sector is on an upward trend, it is generally referred to as a bull market.

CASH FLOW DEFINITION

Wed, 08 Apr 2020 12:20:56 +0000

Cash flow is the amount of money coming into and going out of a company’s accounts, as reported in earnings announcements. It can refer to a single project or the entire business.

CHARTIST DEFINITION

Thu, 09 Apr 2020 15:21:47 +0000

A chartist is a trader who relies predominantly on charts to help them understand a financial instrument’s historical price movements, in order to better predict and to speculate on its future performance. They are also commonly known as technical analysts or technical traders.

CLOSING PRICE

Thu, 09 Apr 2020 15:23:04 +0000

An asset’s closing price is the last level at which it was traded on any given day. This price is often determined by an auction.

COMMISSION DEFINITION

Fri, 10 Apr 2020 14:33:25 +0000

The commission is the charge levied by an investment broker for making trades on a trader’s behalf.

COMMODITY DEFINITION

Fri, 10 Apr 2020 14:38:10 +0000

A commodity is a basic physical asset, often used as a raw material in the production of goods or services.