Trading

Fungibility Fungibility refers to the ability of an asset to be readily exchanged for another asset of similar type and quality within a market. In other words, fungibility describes the interchangeability of assets. Key Factors Affecting Fungibility: Market Depth: Assets with active and liquid markets are generally more fungible. Presence of Substitutable Assets: Assets that […]

Unwinding a Position Unwinding a position involves reversing the steps taken to acquire the position, typically in reverse order. It includes activities such as: 1. Selling or Repurposing Assets:– Sell any assets acquired in the position, such as securities, futures contracts, or options.- Repurpose assets into other investments or use them to generate income. 2. […]

A trading book refers to a document that provides information and guidance to traders, typically covering various aspects of the trading process. It can be structured in several ways, depending on the target audience and the style of teaching. Here are the key components of a trading book: 1. Introduction:– Overview of the book’s goals […]

A seller is a person or company who offers to sell a product or service to a customer. The seller is responsible for providing information about the product or service and for negotiating the price. Key tasks of a seller: Product knowledge: Having a deep understanding of the product or service they are selling, including […]

Definition: Slippage is a phenomenon in which a financial asset’s price moves in the opposite direction to the direction in which it is being traded. It occurs when there is a sudden shift in market sentiment, causing the asset’s price to deviate from its previous trend. Causes: High volatility: Assets with high volatility are more […]