The exit price refers to the price at which you closed your trade, while the entry price is the price at which you entered the trade. The minimum price increment, also known as tick size, represents the smallest price movement in the stock. This information can usually be found in the st...
The word “portfolio” comes from the Latin “folium,”meaning to “carry leaves” (as in papers). Stock and bond certificates were once only issued in paper form, from which this terminology was adopted. Portfolio is also used to describe an artist’s collection of works, for similar reas...
If a stock is not optionable, it is more difficult tohedgepositions in that stock, which makes it harder to mitigate the risks involved. For stocks like these, an investor can arrange for anover-the-counter (OTC) options contractto be written with theirbroker-dealer. It is quite easy the...
Achieving a competitive advantage is crucial to firms trying to enter these industries. Possible strategies are to lure well-known names in the industry away from their present positions to head a new endeavor, giving the firm instant credibility in the market. Experienced, knowledgeable, and well...
Another major difference is in how the funds are managed. Typically, mutual funds are actively managed by a team of professionals who design an investment strategy and make daily decisions on each security in the fund. Most ETFs are passively managed; they may follow a predetermined stock or bo...
What Are Financial Positions? What Is a Stock Market Position? What is the Alternative Investment Market? What are the Different Investment Banker Jobs? What are the Different Types of Financial Investments? Discussion Comments WiseGeek, in your inbox ...
Here’s another key difference between futures and stocks: A futures contract has a fixed life span—an expiration date—while shares of stock could be held, in theory, as long as the company is traded publicly. But most futures contracts aren’t held to expiration. As a contract nears exp...
3. What is the opposite of position trading? The opposite of position trading is active or short-term trading. Active trading involves frequent buying and selling securities, often taking advantage of short-term price fluctuations. Traders engaged in active trading may hold positions for a few day...
A sell-stop order protects against long positions in a stock by triggering a market sell order if the stock price decreases below a certain level. The idea behind this order is that, if the price decreases to a certain level, then it may continue to decrease much farther. So by implementi...
What Commodities Can You Trade In The UK? With a plethora of commodities available to trade in the UK, they’re typically categorized in the following manner: Agricultural: Goods gathered and produced through farming methods. Live stock, grains, fruits, and various confectionary products are all ...