TRADING SKILLS & ESSENTIALS
Underwater
Definition: Underwater is a term used to describe anything that occurs beneath the surface of the water. It is a term used in various contexts, including: 1. Geography:– Underwater landscapes, such as the seafloor, coral reefs, and canyons.- Underwater features, such as mountains, canyons, and underwater caves. 2. Marine Biology:– Marine ecosystems, such as kelp […]
Cash Equivalents
Cash equivalents are short-term, highly liquid investments that can be easily converted into cash. They include: Money market funds: Funds that invest in highly liquid debt instruments, such as Treasury bills and commercial paper. Certificates: Deposits in banks or savings institutions that offer a fixed interest rate for a set period. Treasury bills: Government securities […]
Clearing
Definition: Clearing is the process of removing unwanted items or substances from a space or object. It involves sorting, organizing, and discarding or disposing of items based on their relevance, usefulness, or necessity. Types of Clearing: Spring Cleaning: A comprehensive cleaning of living spaces, including dusting, vacuuming, mopping, and rearranging furniture. Moving Preparation: Clearing out […]
Proprietary Trading
Proprietary Trading Proprietary trading, also known as prop trading, is a type of trading strategy where financial instruments are traded exclusively for the profit of the firm, rather than for clients. Traders who engage in prop trading are employed by the firm, rather than acting as independent investors. Key Characteristics of Proprietary Trading: Firm-owned: The […]
Ex-Ante
Definition: Ex ante refers to something that happens before a particular event or action takes place. Explanation: Ex ante: Occurring or happening before the event or action. Ex post: Occurring or happening after the event or action. Examples: Ex ante: The price of a house before it is sold. Ex post: The price of a […]
Batting Average
The batting average is a statistical measure in baseball that combines a player’s hits and the number of times they have been at bat. It is calculated by dividing the number of hits by the number of times at bat, and is expressed as a decimal number. For example, if a player has 20 hits […]
Hindsight Bias
Hindsight bias is a cognitive bias that refers to the phenomenon of people overestimating their ability to predict future events accurately, based on their own experiences and biases. Explanation: Future events: People tend to underestimate the uncertainty of future events. Experiences: Their own experiences lead them to believe that their predictions are more accurate than […]
Transferor
Sure, the word is “transferor”. Definition: A transferor is a person who transfers property or a right to property to another person. Example: In a deed of transfer, the seller is the transferor and the buyer is the transferee.
Break-Even Price
The break-even price is the price at which the total cost of production and manufacturing a product is equal to the total revenue generated. It’s a key metric in business finance used to determine the price at which a company can neither gain nor lose money. Here’s the formula for calculating the break-even price: Break-even […]
Scalper
Definition: A scalper is an investor who buys and sells financial assets rapidly, primarily for profit from short-term price fluctuations. Scalpers typically employ high-frequency trading (HFT) techniques to execute trades at lightning speeds and exploit fleeting market inefficiencies. Key Characteristics: High-frequency trading: Scalpers use sophisticated algorithms and software to execute trades at extremely rapid speeds, […]
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