Standard & Poor’s 500. A basket of 500 stocks that are considered to be widely held. The S&P 500 index is weighted by market value, and its performance is thought to be representative of the stock market as a whole.
To trade quickly for small gains, often holding a position for less than a day.
The date by which an executed securities transaction must be settled, by paying for a purchase or by delivering a sold asset; usually three business days after the trade was executed.
The difference between the price a trader expects to be filled at, and the price they are actually filled at.
Swiss Options and Financial Futures Exchange, a fully automated and integrated trading and clearing system.
Speculation is the practice of selecting investments (exposing one’s self to risk) with the intention of profiting from price fluctuations.
A large order which is broken into smaller pieces to be executed one at a time to avoid affecting the market price.
The Spread refers to the difference between the sell and buy price for a security.
An order placed by a trader with a broker to sell an asset when it reaches a specific price. These orders are designed to limit a trader’s loss on a position.
An order placed by a trader to buy or sell an asset when its price rises past a particular point, ensuring a higher probability of achieving a predefined entry or exit price, locking profit or limiting investor loss. When the price surpasses the preset entry/exit point, the stop order becomes a market order.