A swap is a financial contract between two parties. It involves the exchange of cash flows based on different interest rates or currencies for a specified period of time. Swaps are typically used to manage risks, take advantage of interest rate differentials or currency fluctuations, or meet financial needs. Swap transactions are commonly conducted […]
Stop Out is a term commonly used in the financial markets, particularly in trading and investing. It refers to a situation where a broker or financial institution closes a trader’s open positions automatically due to insufficient margin or equity in the trader’s account. In leveraged trading, traders are required to maintain a certain level […]
In finance, spread refers to the difference between the bid and ask prices of a financial instrument. The bid price represents the highest price that a buyer is willing to pay for the asset, while the ask price represents the lowest price at which a seller is willing to sell the asset. The spread is […]
Smart Order Routing (SOR) is an advanced trading technology used in financial markets to optimize trade execution and achieve the best possible prices for investors. SOR is an automated order routing system that directs trade orders to different trading venues, such as exchanges, alternative trading systems, or dark pools, based on predefined rules and algorithms. […]
A short position refers to selling a financial instrument with the expectation that its price will decrease. It is a strategy used by traders and investors to profit from a decline in the value of an asset. Here are some key points to understand about short positions: Definition: A short position involves borrowing […]
Rollover fee, also known as swap fee or overnight interest, is a cost or charge incurred when a position or investment is rolled over or held overnight in the financial markets. In various financial instruments such as forex trading, futures contracts, or CFDs (Contracts for Difference), positions are typically opened and closed within the […]
The term “rollover” is commonly used in financial markets and refers to the process of refinancing or restructuring an existing investment or position when it reaches its maturity date or a specified time period. Rollover typically involves a investor entering into a new agreement to either maintain or restructure an expiring financial instrument or […]
In forex trading, the quote currency, also known as the counter currency, is the second currency listed in a currency pair. Currency pairs represent the value of one currency in relation to another, and the quote currency is priced against the base currency. The base currency is the first currency listed in a currency […]
In forex, the term “quote” refers to the current price of a currency pair. A quote for a currency pair includes both the bid and ask prices. The bid price is the price at which a trader can sell the base currency (the first currency in the currency pair) and buy the quote currency […]
An One Cancels Other Order (OCO) is a type of advanced order used in financial markets, particularly in trading stocks, futures, and options. It allows traders to place two orders simultaneously, with the understanding that if one order is executed, the other order will automatically be canceled. Here’s how an OCO order works: […]