Take a look at our list of the financial terms associated with trading and the markets. From beginners starting their trading journey to experts with decades of experience, all traders need to clearly understand a huge number of terms.
Copper is found in ore deposits around the world and top producers include Chile, China, Peru and the US. It was the first metal to be used by humans and remains essential for a variety of uses: it is the world's third most widely used metal, after iron and aluminium.
Copper is priced in USD per lb. it's all-time high was $4.58, which it reached in February 2011. Copper hit a record low of $1.94 in January 2016.
Like silver and gold, it is malleable and a good conductor of electricity, however it is also relatively inexpensive which makes it ideal for industrial applications such as wiring, plumbing and circuitry.
The price of copper is influenced by a number of factors including the strength of the US Dollar, demand from China and extraction costs. However, the energy-intensive refining process mean it is also susceptible to changes in oil prices.
Instability in the political climate of key countries where copper is mined can also affect the price.
An Order in trading is a request sent by a trader to a broker or trading platform to make a trade on a financial instrument such as shares, Crypto, CFDs, currency pairs and assets. This can be done on a trading venue such as a stock market, bond market, commodity market, financial derivative market, or cryptocurrency exchange
What are the most common types of orders?
Common types of orders are:
• Market Orders. A market order is given by traders and investors as an order to immediately buy or sell an asset, security, or share. Such an order guarantees that the order will be executed, yet the actual execution price is not guaranteed.
• Limit Orders. A limit order is an order to buy or sell an asset such as a security at a specific price or better than that price. Traders wishing to define a maximum price for either buying or selling an asset can use limit orders.
• Stop Orders. Stop orders instruct brokers to execute a trade when the asset’s price reaches a certain level.
Compound cryptocurrency is all about supply and demand. Its protocol, based on Ethereum blockchain, creates money markets with interests algorithmically derived from supply and demand levels. Users can earn or pay a floating interest rate without need for negotiating with other parties. Compound is priced in USD and tradeable through the COMP/USD symbol.
Coffee is a “soft” commodity - referring to those that are grown rather than mined. It is the world's second-most popular commodity, behind only crude oil. The market is worth around $100 billion.
Over 50 countries worldwide grow coffee, with around two-thirds of the global supply produced in the Americas. Brazil, Vietnam, and Colombia are the three largest producers.
Coffee is priced in USD per lb. It hit a record high of $339.86/lb during April 1977, while the lowest price on record is $42.50/lb in October 2001.
Coffee is a highly-traded commodity that is often bought by speculators, so risk appetite has a strong effect on prices. Around half of the coffee produced on the globe is bought by just four companies: Kraft, P&G, Sara Lee, and Nestle, so changes in the fortunes of these companies can also impact prices.
Coffee futures allow you to speculate on, or hedge against, changes in the price of coffee. Futures rollover on the second Friday of February, April, June, August, and November.
Corn is a soft commodity - referring to those that are grown rather than mined - and is valued for its versatility. As well as being a dietary staple it has many other uses, from biofuels to animal feed.
Corn is grown in every continent on the globe with the exception on Antarctica. 40% of global corn supplies are produced in the US, while China, Brazil, the EU, and Argentina are also major players.
Corn is priced in USD per bushel. In August 2012 corn struck a record high of $849, while the lowest price ever recorded was $22.90 in November 1932.
As corn is a soft commodity, prices are vulnerable to weather conditions which can affect harvests. The strength of emerging market economies also affects prices, as demand for meat products rises as incomes rise, and much of the corn produced each year is used for animal feed.
Corn futures allow you to speculate on, or hedge against, changes in the price of corn. Futures rollover on the fourth Friday of February, April, June, and November.
In trading, rollover refers to the process of extending the settlement date of a trade by rolling it forward to the next available delivery date. This is typically done for futures contracts and currency trades. Rollover allows traders to maintain an open position beyond the initial settlement date without having to close and re-open the trade.
What are rollover and swap?
When rolling over a trade, a trader may also be required to pay or receive the difference in the interest rate between the two currencies involved in the trade. This is known as "swap" or "overnight financing". Rollover is typically done when traders expect market conditions to remain favorable for their position, allowing them to capture more potential profit.
An open position in trading refers to a trade that has been entered into but not yet closed or settled. The position remains open until the trader decides to close it by executing an opposing order or if the order reaches its expiration. It can refer to a long or short position in a security or financial instrument.
When should you close your position?
A trader should close their position in trading when their predetermined criteria for exiting the trade have been met, such as reaching a certain profit level or stop-loss point. It could also be closed because the trade no longer aligns with their overall strategy or market conditions have changed.
The Opening Price is the price at which a security first trades upon the opening of an exchange on a trading day. It is important to note that it may not identical to the previous day’s closing price. Also, for new stock offerings (IPO etc), Opening Price refers to the initial share price at the beginning of trade of the first day. Yet there are some cases when an opening price will also be the share price which was established by the first trade of the day, instead of being based on a price that was already in place when at the beginning of trade of that day at that specific exchange.
How is opening price calculated?
The opening price is can be calculated by taking the first trade price executed in that trading session. In case of stock trading it is the price of the first trade executed on the exchange when the market opens. Opening price is usually used to calculate the performance of the stock or any other asset for the day.
What is the difference between opening price and closing price?
The opening price is the price of an asset at the start of a trading session, while the closing price is the price of an asset at the end of a trading session.
Who sets the opening price of a stock?
The opening price of a stock is typically set by the stock exchange or market maker responsible for trading that stock.
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What are Support Levels?
Support levels refer to the levels at which the price of an asset tends to stop falling and stabilize. These levels are determined by analyzing past price movements and identifying a floor at which buying pressure is strong enough to prevent the price from falling further. Traders and investors use support levels as a guide for placing buy orders, and as a signal for potential buying opportunities.
What does support level mean in Crypto?
Support levels mean the same thing regardless of the asset class in question.
What is the best indicator for support and resistance?
There are several indicators that can be used to identify support and resistance levels in a market. Some commonly used indicators include moving averages, Fibonacci retracements, and pivot points. However, no single indicator is considered to be the "best" as different indicators may work better in different market conditions and for different traders. Ultimately, the best indicator is the one that works best for you and fits your individual trading style and strategy.
Stop Orders are a type of stock order that helps limit the investor’s risk. The order triggers a purchase or sale once a set price is reached, either above (stop buy) or below (stop sell). Stop Orders are used to protect investors against an unfavorable price movements and lock in potential gains.
How long do stop orders last?
Stop orders are instructions given to a broker to buy or sell an asset when its price reaches a predetermined level. Stop orders remain in effect until the stop price is triggered, at which point the order becomes a market order and will be executed. This means that stop orders may last for an indefinite amount of time. It is important to monitor the current market price closely as stop orders do not guarantee execution.
Are stop orders a good idea?
Stop orders can be useful as they can help limit an investor's loss or protect a profit on a security. They are often used to automatically exit a position when the market moves against the investor. However, the use of stop orders may be subject to market conditions and the specific investment strategy of an investor, so whether or not they are a good idea depends on the individual's financial situation and risk tolerance.
The STOXX Europe 50 Index, also known simply as the Europe 50, is Europe's blue-chip index, comprising of 50 stocks from 17 countries; Austria, Belgium, Czech Republic, Denmark, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the United Kingdom.
The index peaked at 4,557.57 in July 2007 and hit a record low of 1,809.98 in March 2009.
Companies in the Healthcare industry make up a fifth of the index, while Banks is the second-largest sector represented, with a weighting of 15.6%. Personal & Household Goods is the third largest sector with a weighting of 12.3%, but Oil & Gas is only 10 basis points smaller.
The stocks are mostly from Great Britain (33.6%), Switzerland (18%), France (17.9%), and Germany (14.9%). The index includes a capping factor to ensure that it cannot be dominated by one single country or component.
Europe 50 index futures allow you to speculate on, or hedge against, changes in the price of major European stocks. Futures rollover on the second Friday of March, June, September, and December.
A Day Order, or 'good for day order' is a stock market order which remains valid only for the day on which it was entered and is canceled automatically at the end of the trading day. Day orders are used when an investor does not want their order to remain open after the close of trading.
Day Order vs. Market Order
A Day Order is to be filled if and when the indicated asset reaches the specified price as per the order. In the event that the asset does not hit the price specified in the order, the order is then allowed to expire without any further action required. As such day orders are easy for traders to issue, follow up and process they are considered a default trading method both by the traders as well as by trading platforms.
A Market Order on the other hand, is an order to buy or sell a security immediately. While a market order does provide for immediate execution, it does not guarantee the execution price.
Fill order (“Fill”) is the term used to refer to the satisfying of an order to trade a financial asset. It is the foundation of any and all market transactions. When an order has been 'filled', it means it was executed. There are also “Partial fills”, which are orders that have not been fully executed due to conditions placed on the order such as a limit price.
What is minimum fill order?
A minimum fill order is an order placed with a brokerage or trading platform that specifies the minimum number of shares or units that must be executed, otherwise the order will not be executed at all. This type of order is commonly used in situations where a trader wants to ensure that they receive a certain number of shares or units, but is willing to accept a less favorable price in order to ensure that they receive the minimum quantity.
What is unfilled order in trading?
An unfilled order in trading is a buy or sell order that has been placed with a brokerage or trading platform, but has not yet been executed. This can happen if the order is not able to be matched with a counterparty willing to trade at the specified price or quantity. Unfilled orders remain active until they are either executed, canceled or expire.
How long does it take to fill stock order?
The time it takes to fill a stock order can vary depending on a number of factors, including the size and type of the order, the liquidity of the stock, and the overall market conditions. In general, orders for highly liquid stocks with small quantities can be filled in seconds, while orders for less liquid stocks or larger quantities may take longer.
A limit order is an order to buy or sell an asset such as a security at a specific price or better than that price. Traders wishing to define a maximum price for either buying or selling an asset can use limit orders. By placing a limit order they tell a broker to buy or sell a particular stock at a certain price or better than that price (lower for buying, higher for selling). This order is executed only if the transaction can be processed at the limit set in the order.
Is a limit order a good idea?
A key benefit of using a limit order is to ensure that the stock is bought or sold at a certain price point or better than that price point. There is of course the risk of not being able to execute that order as that specific price may never reach that limit as set in the order.
What are the types of limit order?
There are several types of limit orders in trading:
Buy Limit Order: An order to buy a security at a specific price or lower.
Sell Limit Order: An order to sell a security at a specific price or higher.
Buy Stop Limit Order: A stop order to buy a security at a specific price or higher, only activated once a specified stop price has been reached.
Sell Stop Limit Order: A stop order to sell a security at a specific price or lower, only activated once a specified stop price has been reached.
Trailing Stop Limit Order: A type of stop order where the stop price is set at a fixed amount or percentage below or above the market price, and adjusts as the market price moves.
A market order is a type of stock order that allows an investor to purchase or sell securities at the current market price. It is one of the most common types of orders and it is executed as soon as it is placed, meaning the investor will get whatever price is currently available on the exchange.
Is it good to use market order?
A market order is an order to buy or sell a security at the best available current price. This type of order may provide an advantage over other types of orders by executing quickly, but it could also mean that the trade may not be filled at the desired price.
Why would you use a market order?
A market order is typically used when an investor wants to execute a trade quickly, and is willing to accept the current market price. This type of order is often used when an investor wants to take advantage of a price change or when they want to enter or exit a position quickly.
How long does a market order take?
A Market order is generally the fastest order to execute as it simply takes the current market price. You can expect a market order to be executed usually within seconds or minutes of being placed, as long as there is sufficient liquidity in the market.
An Overnight Index Swap (Swap Fee) is a process where the settlement of a deal is rolled forward to another value date, and a charge is levied based on the difference in the interest rates of the two currencies. Every day at 21:00 GMT, open positions are rolled over to the next day and the positions gain or lose interest based on the interest differential between the bought and sold currencies.
What is OIS compound?
The index rate is typically the rate for overnight lending between banks, either non-secured or secured. The fixed rate of OIS is typically an interest rate considered less risky than the corresponding interbank rate (LIBOR) because there is limited counterparty risk.
The LIBOR–OIS spread is the difference between IRS rates, based on the LIBOR, and OIS rates, based on overnight rates, for the same term.
Working orders, also known as pending orders, include Stop orders and Limit orders. Essentially, they’re instructions for a broker to perform a trade when an asset hits a certain price. These orders inform brokers that traders wish to make that trade only if something happens to the asset price.
What is the best order type when buying stock?
The best order type depends on the individual's specific needs and market conditions. It's important to understand the trade-off between speed and price certainty when choosing an order type. Market orders provide immediate execution but at the current market price, while limit orders offer price certainty but may not be executed if the desired price is not reached.
What is an open work order?
An open work order in trading is an outstanding order to buy or sell a security that has not yet been executed. It remains open until it is either filled or cancelled by the trader.
Currency appreciation in relation to Forex trading is defined as when one currency in a forex pair increases in value relative to the other currency in that pair. As such, the now “stronger” currency will cost more of the “weaker” one to buy. The reverse is also true, as that same stronger currency can now buy more of the weaker one when sold.
Is it good if a currency appreciates?
As one of the currencies in a currency pair goes up (or down), as the demand for it drives it up (or lack of it) or demand for the other currency) drives it down, than the supply does also follows – either less (when in demand) or more of it (when not in demand).
There are several reasons for Currency Appreciation, including the balance of trade, speculation on any of the currencies in that pair, or issues occurring within the international capital market. Traders may attempt to predict currency appreciation by utilizing the economic calendar. This calendar details economic issues which might determine the strengths and weaknesses of the global or local economies and currencies.
Online brokers are digital trading platforms that allow users to trade stocks, options, ETFs and other financial products online. They offer convenience and competitive pricing, making them popular among individual investors and traders.
What are the three types of brokers?
Trading brokers come in three main varieties: full-service, discount, and online. Full-service brokers offer a variety of services such as research, advice, and account management. Discount brokers are low-cost and may only offer basic services. Online brokers provide customers access to the markets with limited assistance.
Are online brokers safe?
Online brokers are generally safe when used correctly. It is important to use trusted and reliable providers, keep your account secure, and be mindful of any potential risks when trading online. For example, markets.com is fully regulated and controlled for maximum security and safety while you trade.
The European Central Bank (ECB) is the central bank for the European Union's member states that have adopted the euro. The ECB is responsible for the management of the euro and for implementing monetary policy in the eurozone. It is independent of national governments and has the primary objective of maintaining price stability in the eurozone.
Who controls the European Central Bank?
As stated above, the European Central Bank (ECB) is independent from national governments and political influences. It is governed by the Governing Council, which is composed of the six members of the Executive Board and the governors of the national central banks of the 19 European Union (EU) member states that have adopted the euro as their currency. The President of the ECB, currently Christine Lagarde, is appointed by the European Council
ACWI stands for All Country World Index and this ETF is designed to provide a broad reflection of the performance of equity markets around the world comprising stocks from 23 developed and 24 emerging markets. It’s owned by Morgan Stanley Capital International (MSCI).
The ETF tracks nearly 2,500 stocks, including Apple, Microsoft, Amazon and Facebook. Stocks from five countries make up 72.6% of the ACWI, those being the USA, Japan, the UK, France and China. The remaining 27.4% comprises stocks from the other 42 countries. The ACWI is used as a benchmark of performance by fund managers, and is considered a good way to diversify a portfolio.
A Stop Loss Order is a type of order that investors can use to limit losses when trading securities. This order instructs a broker to automatically sell a security when it reaches a certain price, known as the stop loss price. By using this order, investors can reduce their risk exposure by locking in gains and preventing larger losses.
How does a stop-loss order work?
A stop-loss order is an investment strategy that helps you limit losses by automatically selling your securities when they drop to a predetermined price. By setting up this order, you can avoid having to monitor the stock's performance every day and ensure that any potential losses are minimized.
What is the difference between a stop-loss and a stop limit order?
A stop-loss order is used to limit losses on a security position by automatically selling when the price drops below a specified level. Whereas a stop-limit order combines the features of a stop-loss with those of a limit order, enabling traders to specify both the price at which they are willing to sell and the maximum loss they are willing to take.
What is a good stop-loss order?
A good stop-loss order is one that is placed at a level that effectively limits potential losses on a trade. The specific level at which to place a stop-loss order will depend on the trader's risk tolerance and the price action of the security being traded. Generally, traders will place stop-loss orders at levels that are below the current price for long positions, or above the current price for short positions, in order to limit potential losses if the price moves in the opposite direction. It's important to note that stop loss orders act as a protective measure, but they don't guarantee that a trade will be executed at the exact stop loss level.
Trailing Stop Orders are a type of stock order that lets investors adjust the stop price as a security rises or falls. This order works by continuously monitoring the price of a security and dynamically adjusts the stop price with every tick. The advantage of this type of order is that it allows investors to limit their losses, while locking in profits, without having to manually modify the stop-loss point.
Are Trailing Stop Orders good?
Trailing Stop Orders can be a good way to protect profits in your trading. They allow you to set an automated stop-loss that trails the price of a stock, adjusting up as it rises, while allowing you to lock in some gains if the stock begins to fall. This is especially useful when dealing with volatile stocks, giving you more control over your position.
What is a disadvantage of a trailing stop loss?
Trailing stop losses can help minimize risk when trading, however they also limit potential gains. The stop price adjusts based on market conditions, so as the price increases, the stop loss will move up. If the stock drops significantly and your trailing stop loss is too close, it may be triggered before you have a chance to react.
Which is better stop limit or trailing stop?
It depends entirely on the trader. A stop limit will sell at the specified price, while a trailing stop will track price changes and sell when the specified amount is exceeded. Different traders may have different needs and objectives, so which type of order is best will vary. Consider your goals before deciding which option is right for you.
Earnings Per Share (EPS) is a financial metric that measures the amount of profit a company makes for each outstanding share of its common stock. It's calculated by dividing net income by the number of shares outstanding. Investors use EPS to measure how profitable a company is and to compare different companies in the same sector.
What is a good earnings per share? Is it better to have a high or low earnings per share?
There is no definitive answer to what constitutes a "good" earnings per share (EPS) as it can vary depending on the industry, the size of the company, and the expectations of the market. Generally, a higher EPS is considered better, as it indicates that a company is generating more profit per share of stock.
What is earnings per share vs dividend?
A dividend is a payment made by a company to its shareholders out of its profits or reserves. Whereas EPS is an indicator of a company's profitability.
The Federal Open Market Committee (FOMC) is the policy-making arm of the Federal Reserve System (the Fed) which is responsible for making monetary policy decisions. The FOMC is made up of 12 members, including the seven governors of the Federal Reserve Board and five of the 12 Reserve Bank presidents.
What does the Federal Open Market Committee impact?
The FOMC meets eight times a year to set the target for the federal funds rate, which is the interest rate at which banks lend and borrow money from each other overnight. The FOMC's decisions can have a significant impact on interest rates, the economy, and the stock market. The FOMC makes key decisions about interest rates and the growth of the United States money supply. It also directs operations undertaken by the Federal Reserve System in foreign exchange markets. They consider a wide array of factors such as trends in prices and wages, employment and production, business investment and inventories, foreign exchange markets, and fiscal policy.
The Xtrackers MSCI U.S.A. ESG Leaders Equity ETF (USSG) holds a basket of companies that score highly for environmental, social, and governance (ESG) factors, with roughly marketlike sector exposure. The fund’s index uses MSCI’s ESG rating methodology to assign a score to all US large- and midcap stocks.
Moving Average Convergence/Divergence, also known as MACD , is an analytical trading indicator. Its function is to show changes in the strength, direction, momentum, and duration of a trend in a share’s price. The MACD indicator is comprised of three time series charts based on historical price data. For example, closing price.
How can you tell if MACD is bullish?
If the MACD line (the blue line) is above the signal line (the red line), it is considered to be bullish and suggests that the security's price is likely to rise. This is because the MACD line is calculated by subtracting the 26-day exponential moving average (EMA) from the 12-day EMA, and when the 12-day EMA is above the 26-day EMA, it indicates that short-term momentum is bullish and the stock is likely to rise.
Is MACD a good indicator?
MACD is a widely used technical indicator that can be a useful tool for identifying trends and potential buy or sell signals in the market. However, like any indicator, it has its limitations and should be used in conjunction with other technical analysis tools and fundamental analysis to make informed trading decisions.
Which is better MACD or RSI?
Both the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) are popular technical indicators used in trading. They are both useful tools for identifying trends and potential buy or sell signals, but they are based on different calculations and are used for different purposes.
The MACD is a momentum indicator that is calculated by subtracting the 26-day exponential moving average (EMA) from the 12-day EMA. It is used to identify bullish or bearish trends and potential changes in momentum.
The RSI, on the other hand, is a momentum oscillator that compares the magnitude of recent gains to recent losses in an attempt to determine overbought and oversold conditions of an asset.
Both indicators can be useful, but they can also give different signals, so once again, it's important to use them in conjunction with other indicators and analysis techniques to make informed trading decisions.
Copper is found in ore deposits around the world and top producers include Chile, China, Peru and the US. It was the first metal to be used by humans and remains essential for a variety of uses: it is the world's third most widely used metal, after iron and aluminium.
Copper is priced in USD per lb. it's all-time high was $4.58, which it reached in February 2011. Copper hit a record low of $1.94 in January 2016.
Like silver and gold, it is malleable and a good conductor of electricity, however it is also relatively inexpensive which makes it ideal for industrial applications such as wiring, plumbing and circuitry.
The price of copper is influenced by a number of factors including the strength of the US Dollar, demand from China and extraction costs. However, the energy-intensive refining process mean it is also susceptible to changes in oil prices.
Instability in the political climate of key countries where copper is mined can also affect the price.
Compound cryptocurrency is all about supply and demand. Its protocol, based on Ethereum blockchain, creates money markets with interests algorithmically derived from supply and demand levels. Users can earn or pay a floating interest rate without need for negotiating with other parties. Compound is priced in USD and tradeable through the COMP/USD symbol.
Coffee is a “soft” commodity - referring to those that are grown rather than mined. It is the world's second-most popular commodity, behind only crude oil. The market is worth around $100 billion.
Over 50 countries worldwide grow coffee, with around two-thirds of the global supply produced in the Americas. Brazil, Vietnam, and Colombia are the three largest producers.
Coffee is priced in USD per lb. It hit a record high of $339.86/lb during April 1977, while the lowest price on record is $42.50/lb in October 2001.
Coffee is a highly-traded commodity that is often bought by speculators, so risk appetite has a strong effect on prices. Around half of the coffee produced on the globe is bought by just four companies: Kraft, P&G, Sara Lee, and Nestle, so changes in the fortunes of these companies can also impact prices.
Coffee futures allow you to speculate on, or hedge against, changes in the price of coffee. Futures rollover on the second Friday of February, April, June, August, and November.
Corn is a soft commodity - referring to those that are grown rather than mined - and is valued for its versatility. As well as being a dietary staple it has many other uses, from biofuels to animal feed.
Corn is grown in every continent on the globe with the exception on Antarctica. 40% of global corn supplies are produced in the US, while China, Brazil, the EU, and Argentina are also major players.
Corn is priced in USD per bushel. In August 2012 corn struck a record high of $849, while the lowest price ever recorded was $22.90 in November 1932.
As corn is a soft commodity, prices are vulnerable to weather conditions which can affect harvests. The strength of emerging market economies also affects prices, as demand for meat products rises as incomes rise, and much of the corn produced each year is used for animal feed.
Corn futures allow you to speculate on, or hedge against, changes in the price of corn. Futures rollover on the fourth Friday of February, April, June, and November.
A Day Order, or 'good for day order' is a stock market order which remains valid only for the day on which it was entered and is canceled automatically at the end of the trading day. Day orders are used when an investor does not want their order to remain open after the close of trading.
Day Order vs. Market Order
A Day Order is to be filled if and when the indicated asset reaches the specified price as per the order. In the event that the asset does not hit the price specified in the order, the order is then allowed to expire without any further action required. As such day orders are easy for traders to issue, follow up and process they are considered a default trading method both by the traders as well as by trading platforms.
A Market Order on the other hand, is an order to buy or sell a security immediately. While a market order does provide for immediate execution, it does not guarantee the execution price.
Currency appreciation in relation to Forex trading is defined as when one currency in a forex pair increases in value relative to the other currency in that pair. As such, the now “stronger” currency will cost more of the “weaker” one to buy. The reverse is also true, as that same stronger currency can now buy more of the weaker one when sold.
Is it good if a currency appreciates?
As one of the currencies in a currency pair goes up (or down), as the demand for it drives it up (or lack of it) or demand for the other currency) drives it down, than the supply does also follows – either less (when in demand) or more of it (when not in demand).
There are several reasons for Currency Appreciation, including the balance of trade, speculation on any of the currencies in that pair, or issues occurring within the international capital market. Traders may attempt to predict currency appreciation by utilizing the economic calendar. This calendar details economic issues which might determine the strengths and weaknesses of the global or local economies and currencies.
ACWI stands for All Country World Index and this ETF is designed to provide a broad reflection of the performance of equity markets around the world comprising stocks from 23 developed and 24 emerging markets. It’s owned by Morgan Stanley Capital International (MSCI).
The ETF tracks nearly 2,500 stocks, including Apple, Microsoft, Amazon and Facebook. Stocks from five countries make up 72.6% of the ACWI, those being the USA, Japan, the UK, France and China. The remaining 27.4% comprises stocks from the other 42 countries. The ACWI is used as a benchmark of performance by fund managers, and is considered a good way to diversify a portfolio.
The STOXX Europe 50 Index, also known simply as the Europe 50, is Europe's blue-chip index, comprising of 50 stocks from 17 countries; Austria, Belgium, Czech Republic, Denmark, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the United Kingdom.
The index peaked at 4,557.57 in July 2007 and hit a record low of 1,809.98 in March 2009.
Companies in the Healthcare industry make up a fifth of the index, while Banks is the second-largest sector represented, with a weighting of 15.6%. Personal & Household Goods is the third largest sector with a weighting of 12.3%, but Oil & Gas is only 10 basis points smaller.
The stocks are mostly from Great Britain (33.6%), Switzerland (18%), France (17.9%), and Germany (14.9%). The index includes a capping factor to ensure that it cannot be dominated by one single country or component.
Europe 50 index futures allow you to speculate on, or hedge against, changes in the price of major European stocks. Futures rollover on the second Friday of March, June, September, and December.
Fill order (“Fill”) is the term used to refer to the satisfying of an order to trade a financial asset. It is the foundation of any and all market transactions. When an order has been 'filled', it means it was executed. There are also “Partial fills”, which are orders that have not been fully executed due to conditions placed on the order such as a limit price.
What is minimum fill order?
A minimum fill order is an order placed with a brokerage or trading platform that specifies the minimum number of shares or units that must be executed, otherwise the order will not be executed at all. This type of order is commonly used in situations where a trader wants to ensure that they receive a certain number of shares or units, but is willing to accept a less favorable price in order to ensure that they receive the minimum quantity.
What is unfilled order in trading?
An unfilled order in trading is a buy or sell order that has been placed with a brokerage or trading platform, but has not yet been executed. This can happen if the order is not able to be matched with a counterparty willing to trade at the specified price or quantity. Unfilled orders remain active until they are either executed, canceled or expire.
How long does it take to fill stock order?
The time it takes to fill a stock order can vary depending on a number of factors, including the size and type of the order, the liquidity of the stock, and the overall market conditions. In general, orders for highly liquid stocks with small quantities can be filled in seconds, while orders for less liquid stocks or larger quantities may take longer.
The European Central Bank (ECB) is the central bank for the European Union's member states that have adopted the euro. The ECB is responsible for the management of the euro and for implementing monetary policy in the eurozone. It is independent of national governments and has the primary objective of maintaining price stability in the eurozone.
Who controls the European Central Bank?
As stated above, the European Central Bank (ECB) is independent from national governments and political influences. It is governed by the Governing Council, which is composed of the six members of the Executive Board and the governors of the national central banks of the 19 European Union (EU) member states that have adopted the euro as their currency. The President of the ECB, currently Christine Lagarde, is appointed by the European Council
Earnings Per Share (EPS) is a financial metric that measures the amount of profit a company makes for each outstanding share of its common stock. It's calculated by dividing net income by the number of shares outstanding. Investors use EPS to measure how profitable a company is and to compare different companies in the same sector.
What is a good earnings per share? Is it better to have a high or low earnings per share?
There is no definitive answer to what constitutes a "good" earnings per share (EPS) as it can vary depending on the industry, the size of the company, and the expectations of the market. Generally, a higher EPS is considered better, as it indicates that a company is generating more profit per share of stock.
What is earnings per share vs dividend?
A dividend is a payment made by a company to its shareholders out of its profits or reserves. Whereas EPS is an indicator of a company's profitability.
The Federal Open Market Committee (FOMC) is the policy-making arm of the Federal Reserve System (the Fed) which is responsible for making monetary policy decisions. The FOMC is made up of 12 members, including the seven governors of the Federal Reserve Board and five of the 12 Reserve Bank presidents.
What does the Federal Open Market Committee impact?
The FOMC meets eight times a year to set the target for the federal funds rate, which is the interest rate at which banks lend and borrow money from each other overnight. The FOMC's decisions can have a significant impact on interest rates, the economy, and the stock market. The FOMC makes key decisions about interest rates and the growth of the United States money supply. It also directs operations undertaken by the Federal Reserve System in foreign exchange markets. They consider a wide array of factors such as trends in prices and wages, employment and production, business investment and inventories, foreign exchange markets, and fiscal policy.
A limit order is an order to buy or sell an asset such as a security at a specific price or better than that price. Traders wishing to define a maximum price for either buying or selling an asset can use limit orders. By placing a limit order they tell a broker to buy or sell a particular stock at a certain price or better than that price (lower for buying, higher for selling). This order is executed only if the transaction can be processed at the limit set in the order.
Is a limit order a good idea?
A key benefit of using a limit order is to ensure that the stock is bought or sold at a certain price point or better than that price point. There is of course the risk of not being able to execute that order as that specific price may never reach that limit as set in the order.
What are the types of limit order?
There are several types of limit orders in trading:
Buy Limit Order: An order to buy a security at a specific price or lower.
Sell Limit Order: An order to sell a security at a specific price or higher.
Buy Stop Limit Order: A stop order to buy a security at a specific price or higher, only activated once a specified stop price has been reached.
Sell Stop Limit Order: A stop order to sell a security at a specific price or lower, only activated once a specified stop price has been reached.
Trailing Stop Limit Order: A type of stop order where the stop price is set at a fixed amount or percentage below or above the market price, and adjusts as the market price moves.
An Order in trading is a request sent by a trader to a broker or trading platform to make a trade on a financial instrument such as shares, Crypto, CFDs, currency pairs and assets. This can be done on a trading venue such as a stock market, bond market, commodity market, financial derivative market, or cryptocurrency exchange
What are the most common types of orders?
Common types of orders are:
• Market Orders. A market order is given by traders and investors as an order to immediately buy or sell an asset, security, or share. Such an order guarantees that the order will be executed, yet the actual execution price is not guaranteed.
• Limit Orders. A limit order is an order to buy or sell an asset such as a security at a specific price or better than that price. Traders wishing to define a maximum price for either buying or selling an asset can use limit orders.
• Stop Orders. Stop orders instruct brokers to execute a trade when the asset’s price reaches a certain level.
An open position in trading refers to a trade that has been entered into but not yet closed or settled. The position remains open until the trader decides to close it by executing an opposing order or if the order reaches its expiration. It can refer to a long or short position in a security or financial instrument.
When should you close your position?
A trader should close their position in trading when their predetermined criteria for exiting the trade have been met, such as reaching a certain profit level or stop-loss point. It could also be closed because the trade no longer aligns with their overall strategy or market conditions have changed.
The Opening Price is the price at which a security first trades upon the opening of an exchange on a trading day. It is important to note that it may not identical to the previous day’s closing price. Also, for new stock offerings (IPO etc), Opening Price refers to the initial share price at the beginning of trade of the first day. Yet there are some cases when an opening price will also be the share price which was established by the first trade of the day, instead of being based on a price that was already in place when at the beginning of trade of that day at that specific exchange.
How is opening price calculated?
The opening price is can be calculated by taking the first trade price executed in that trading session. In case of stock trading it is the price of the first trade executed on the exchange when the market opens. Opening price is usually used to calculate the performance of the stock or any other asset for the day.
What is the difference between opening price and closing price?
The opening price is the price of an asset at the start of a trading session, while the closing price is the price of an asset at the end of a trading session.
Who sets the opening price of a stock?
The opening price of a stock is typically set by the stock exchange or market maker responsible for trading that stock.
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A market order is a type of stock order that allows an investor to purchase or sell securities at the current market price. It is one of the most common types of orders and it is executed as soon as it is placed, meaning the investor will get whatever price is currently available on the exchange.
Is it good to use market order?
A market order is an order to buy or sell a security at the best available current price. This type of order may provide an advantage over other types of orders by executing quickly, but it could also mean that the trade may not be filled at the desired price.
Why would you use a market order?
A market order is typically used when an investor wants to execute a trade quickly, and is willing to accept the current market price. This type of order is often used when an investor wants to take advantage of a price change or when they want to enter or exit a position quickly.
How long does a market order take?
A Market order is generally the fastest order to execute as it simply takes the current market price. You can expect a market order to be executed usually within seconds or minutes of being placed, as long as there is sufficient liquidity in the market.
An Overnight Index Swap (Swap Fee) is a process where the settlement of a deal is rolled forward to another value date, and a charge is levied based on the difference in the interest rates of the two currencies. Every day at 21:00 GMT, open positions are rolled over to the next day and the positions gain or lose interest based on the interest differential between the bought and sold currencies.
What is OIS compound?
The index rate is typically the rate for overnight lending between banks, either non-secured or secured. The fixed rate of OIS is typically an interest rate considered less risky than the corresponding interbank rate (LIBOR) because there is limited counterparty risk.
The LIBOR–OIS spread is the difference between IRS rates, based on the LIBOR, and OIS rates, based on overnight rates, for the same term.
Online brokers are digital trading platforms that allow users to trade stocks, options, ETFs and other financial products online. They offer convenience and competitive pricing, making them popular among individual investors and traders.
What are the three types of brokers?
Trading brokers come in three main varieties: full-service, discount, and online. Full-service brokers offer a variety of services such as research, advice, and account management. Discount brokers are low-cost and may only offer basic services. Online brokers provide customers access to the markets with limited assistance.
Are online brokers safe?
Online brokers are generally safe when used correctly. It is important to use trusted and reliable providers, keep your account secure, and be mindful of any potential risks when trading online. For example, markets.com is fully regulated and controlled for maximum security and safety while you trade.
Moving Average Convergence/Divergence, also known as MACD , is an analytical trading indicator. Its function is to show changes in the strength, direction, momentum, and duration of a trend in a share’s price. The MACD indicator is comprised of three time series charts based on historical price data. For example, closing price.
How can you tell if MACD is bullish?
If the MACD line (the blue line) is above the signal line (the red line), it is considered to be bullish and suggests that the security's price is likely to rise. This is because the MACD line is calculated by subtracting the 26-day exponential moving average (EMA) from the 12-day EMA, and when the 12-day EMA is above the 26-day EMA, it indicates that short-term momentum is bullish and the stock is likely to rise.
Is MACD a good indicator?
MACD is a widely used technical indicator that can be a useful tool for identifying trends and potential buy or sell signals in the market. However, like any indicator, it has its limitations and should be used in conjunction with other technical analysis tools and fundamental analysis to make informed trading decisions.
Which is better MACD or RSI?
Both the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) are popular technical indicators used in trading. They are both useful tools for identifying trends and potential buy or sell signals, but they are based on different calculations and are used for different purposes.
The MACD is a momentum indicator that is calculated by subtracting the 26-day exponential moving average (EMA) from the 12-day EMA. It is used to identify bullish or bearish trends and potential changes in momentum.
The RSI, on the other hand, is a momentum oscillator that compares the magnitude of recent gains to recent losses in an attempt to determine overbought and oversold conditions of an asset.
Both indicators can be useful, but they can also give different signals, so once again, it's important to use them in conjunction with other indicators and analysis techniques to make informed trading decisions.
In trading, rollover refers to the process of extending the settlement date of a trade by rolling it forward to the next available delivery date. This is typically done for futures contracts and currency trades. Rollover allows traders to maintain an open position beyond the initial settlement date without having to close and re-open the trade.
What are rollover and swap?
When rolling over a trade, a trader may also be required to pay or receive the difference in the interest rate between the two currencies involved in the trade. This is known as "swap" or "overnight financing". Rollover is typically done when traders expect market conditions to remain favorable for their position, allowing them to capture more potential profit.
What are Support Levels?
Support levels refer to the levels at which the price of an asset tends to stop falling and stabilize. These levels are determined by analyzing past price movements and identifying a floor at which buying pressure is strong enough to prevent the price from falling further. Traders and investors use support levels as a guide for placing buy orders, and as a signal for potential buying opportunities.
What does support level mean in Crypto?
Support levels mean the same thing regardless of the asset class in question.
What is the best indicator for support and resistance?
There are several indicators that can be used to identify support and resistance levels in a market. Some commonly used indicators include moving averages, Fibonacci retracements, and pivot points. However, no single indicator is considered to be the "best" as different indicators may work better in different market conditions and for different traders. Ultimately, the best indicator is the one that works best for you and fits your individual trading style and strategy.
Stop Orders are a type of stock order that helps limit the investor’s risk. The order triggers a purchase or sale once a set price is reached, either above (stop buy) or below (stop sell). Stop Orders are used to protect investors against an unfavorable price movements and lock in potential gains.
How long do stop orders last?
Stop orders are instructions given to a broker to buy or sell an asset when its price reaches a predetermined level. Stop orders remain in effect until the stop price is triggered, at which point the order becomes a market order and will be executed. This means that stop orders may last for an indefinite amount of time. It is important to monitor the current market price closely as stop orders do not guarantee execution.
Are stop orders a good idea?
Stop orders can be useful as they can help limit an investor's loss or protect a profit on a security. They are often used to automatically exit a position when the market moves against the investor. However, the use of stop orders may be subject to market conditions and the specific investment strategy of an investor, so whether or not they are a good idea depends on the individual's financial situation and risk tolerance.
A Stop Loss Order is a type of order that investors can use to limit losses when trading securities. This order instructs a broker to automatically sell a security when it reaches a certain price, known as the stop loss price. By using this order, investors can reduce their risk exposure by locking in gains and preventing larger losses.
How does a stop-loss order work?
A stop-loss order is an investment strategy that helps you limit losses by automatically selling your securities when they drop to a predetermined price. By setting up this order, you can avoid having to monitor the stock's performance every day and ensure that any potential losses are minimized.
What is the difference between a stop-loss and a stop limit order?
A stop-loss order is used to limit losses on a security position by automatically selling when the price drops below a specified level. Whereas a stop-limit order combines the features of a stop-loss with those of a limit order, enabling traders to specify both the price at which they are willing to sell and the maximum loss they are willing to take.
What is a good stop-loss order?
A good stop-loss order is one that is placed at a level that effectively limits potential losses on a trade. The specific level at which to place a stop-loss order will depend on the trader's risk tolerance and the price action of the security being traded. Generally, traders will place stop-loss orders at levels that are below the current price for long positions, or above the current price for short positions, in order to limit potential losses if the price moves in the opposite direction. It's important to note that stop loss orders act as a protective measure, but they don't guarantee that a trade will be executed at the exact stop loss level.
Trailing Stop Orders are a type of stock order that lets investors adjust the stop price as a security rises or falls. This order works by continuously monitoring the price of a security and dynamically adjusts the stop price with every tick. The advantage of this type of order is that it allows investors to limit their losses, while locking in profits, without having to manually modify the stop-loss point.
Are Trailing Stop Orders good?
Trailing Stop Orders can be a good way to protect profits in your trading. They allow you to set an automated stop-loss that trails the price of a stock, adjusting up as it rises, while allowing you to lock in some gains if the stock begins to fall. This is especially useful when dealing with volatile stocks, giving you more control over your position.
What is a disadvantage of a trailing stop loss?
Trailing stop losses can help minimize risk when trading, however they also limit potential gains. The stop price adjusts based on market conditions, so as the price increases, the stop loss will move up. If the stock drops significantly and your trailing stop loss is too close, it may be triggered before you have a chance to react.
Which is better stop limit or trailing stop?
It depends entirely on the trader. A stop limit will sell at the specified price, while a trailing stop will track price changes and sell when the specified amount is exceeded. Different traders may have different needs and objectives, so which type of order is best will vary. Consider your goals before deciding which option is right for you.
Working orders, also known as pending orders, include Stop orders and Limit orders. Essentially, they’re instructions for a broker to perform a trade when an asset hits a certain price. These orders inform brokers that traders wish to make that trade only if something happens to the asset price.
What is the best order type when buying stock?
The best order type depends on the individual's specific needs and market conditions. It's important to understand the trade-off between speed and price certainty when choosing an order type. Market orders provide immediate execution but at the current market price, while limit orders offer price certainty but may not be executed if the desired price is not reached.
What is an open work order?
An open work order in trading is an outstanding order to buy or sell a security that has not yet been executed. It remains open until it is either filled or cancelled by the trader.
The Xtrackers MSCI U.S.A. ESG Leaders Equity ETF (USSG) holds a basket of companies that score highly for environmental, social, and governance (ESG) factors, with roughly marketlike sector exposure. The fund’s index uses MSCI’s ESG rating methodology to assign a score to all US large- and midcap stocks.
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