Hedge
To hedge is to take a futures position that is equal and opposite to a position held in the cash market. The objective is to mitigate the risk of an adverse move in prices....
Category: Stock Trader
High-frequency trader (HFT)
HFT is a type of investment strategy whereby stocks are rapidly bought and sold by a computer algorithm and held for a very short period, usually seconds or milliseconds. The advancement of technology over...
Short
Shorting is a specialized finance term. It is also known as going short or short selling. These terms refer to the selling of the instrument or securities borrowed from the third party. Such third...
Stock trader
People want to trade in the stock market, because everyone can make money through the stock market by using phone call or using internet from computer. Why stocks are good investments, because they can...
Pattern day trader
Pattern Day Trader: This is a day trader who day trades 4 or more times in 5 business days within a single margin account. The term “pattern Day-Trader” is defined as any customer who...
Day trader
The IRS defines day traders to be those who meet the following three characteristics: 1) Traders maintain substantial trading activity. (10-20 daily trades should be sufficient.) 2) The trader’s trading activity is sustained on...
Algorithmic Trading
Algorithmic trading involves entering trading orders through electronic trading platforms using an algorithm -which helps in taking into account order’s characteristic like timing, price, and the volume of the order. Besides, in many cases...
Flash Order
A flash order, which is also known as flash trading, is defined by the trade publication known as Traders Magazine as a marketable order that is sent to a market center not quoting the...
Rogue trader
A rogue trader is an official employee who makes trades on behalf of the company that are not legal or approved by the company. This term is used to denote the employees who work...
Long
In financial terms a long position on a security, such as a bond or stock share, means that the investor will earn profit if the price of the stock goes up in the future.This...
Floor traders
Floor traders, sometimes called registered competitive traders, individual liquidity providers or locals, are members of a share/stock exchange or commodities exchange. They trade on the floor of the exchange for whatever account they work...