Tag: S

S&P 500

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.

Scalp

To trade quickly for small gains, often holding a position for less than a day.

Settlement Date

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.

Slippage

The difference between the price a trader expects to be filled at, and the price they are actually filled at.

SOFFEX

Swiss Options and Financial Futures Exchange, a fully automated and integrated trading and clearing system.

Speculative

Speculation is the practice of selecting investments (exposing one’s self to risk) with the intention of profiting from price fluctuations.

Split Order

A large order which is broken into smaller pieces to be executed one at a time to avoid affecting the market price.

Spread

The Spread refers to the difference between the sell and buy price for a security.

Stop Loss (S/L)

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.

Stop Order

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.