Trading Strategies

At the Close
An order to buy or sell a security within the final 30 seconds of the trading session. Brokers cannot guarantee that these orders will be executed.
Day Order
A day order is an order to buy or sell securities that expires unless executed or canceled the day it is placed. All orders are typically day orders unless otherwise specified.
Day Trader
A day trader is an individual who buys and sells financial instruments within the same trading day, with the goal of profiting from short-term price fluctuations.
Efficient Market
The Efficient Market Hypothesis (EMH) is a financial theory suggesting that asset prices reflect all available information, making it nearly impossible to consistently achieve higher returns than average market returns.
Flash Trading
Flash trading is a form of high-frequency trading (HFT) where certain traders get information about market orders fractions of a second before the general public does. This practice enables them to capitalize on this advance notice of potential trades.
Going Short
Going short refers to the act of selling a stock or commodity that the seller does not own, typically in anticipation that the price will decline, allowing them to buy it back at a lower price for a profit.
Index Options
Explore index options, which are calls and puts on indexes of stocks, allowing investors to trade in a particular market or industry group without purchasing individual stocks.
Scalpers
Traders in financial markets who engage in high-frequency trading, dealing very frequently for small gains and may hold a position for only a few minutes.
Short Selling
Short selling is a trading strategy where an investor borrows shares and sells them on the open market, planning to buy them back later for less money.
Spot Delivery Month
The spot delivery month refers to the nearest month in which a commodity could be delivered, relative to the current month of trading.
Square Position
In financial trading, a square position refers to an open position that has been covered or hedged, neutralizing the trader’s exposure and risk associated with price movements.
Uptick
An uptick indicates that the latest trade in a stock is at a higher price than the previous trade. A zero-plus tick is a trade at the last price with the preceding different price registered as an uptick.

Accounting Terms Lexicon

Discover comprehensive accounting definitions and practical insights. Empowering students and professionals with clear and concise explanations for a better understanding of financial terms.