One Cancels Other (OCO) is an order type commonly used in financial markets. It allows investors to place multiple orders on the same asset, with the condition that if one order is executed, the other order is automatically canceled. The OCO order is designed to provide flexibility in risk management and strategic position taking. […]
The notional amount, also known as the notional principal or face value, is a term used in financial contracts, particularly in derivatives. It represents the reference amount or quantity specified in a contract, without actually being exchanged or transacted. The notional amount is a crucial element in derivative contracts such as futures, options, swaps, […]
Market Range refers to the range of prices at which a financial instrument can be bought or sold in the market. It represents the minimum and maximum prices within which a transaction can be executed. The market range provides an indication of the price volatility and liquidity of a particular financial instrument. In the […]
Market Price refers to the current price at which a financial instrument can be bought or sold in the market. It is determined by the forces of supply and demand and constantly fluctuates based on various factors. The Market Price aims to reflect the true value of the instrument, taking into account the information and […]
A Market Order is a type of order placed by an investor to buy or sell a financial instrument at the current market price. It is executed immediately at the best available price in the market, ensuring a fast and efficient trade execution. The key characteristic of a Market Order is that it prioritizes speed […]
The term “market” refers to the interaction between buyers and sellers, where goods, services, or assets are exchanged. It is a mechanism that facilitates the exchange of products or services between buyers and sellers. Markets can exist in various forms, including physical locations, such as traditional brick-and-mortar stores, as well as virtual platforms, such as […]
Mark to Market (MTM) is an accounting method that values financial assets or liabilities at their current market value. It is commonly used in financial markets to assess the value of traded assets and aims to accurately reflect a company’s financial position and performance. The working principle of MTM can be summarized as follows: […]
Margin refers to the amount of money or collateral that an investor must deposit with their broker or exchange in order to open and maintain a leveraged trading position. It is essentially a form of borrowed funds that allows traders to increase their exposure to financial markets. When trading on margin, investors are required […]
Maintenance margin is a term used in margin trading to refer to the minimum amount of equity that must be maintained in a trading account to keep a position open. It is a requirement set by brokers or exchanges to ensure that traders have enough funds to cover potential losses and prevent their account from […]
Lot size refers to the standardized quantity or volume of an asset that is used in trading. It is a term commonly used in financial markets to determine the trade volume, risks, and potential returns. Lot size can be defined differently in various markets. Here are some examples: Stock Market: In the stock […]