Tag: S

Stopped Out

This is when a position is closed due to the execution of a stop order.

Straddle

This is when an investor purchases or sells an equal number of puts and calls, with the same strike price and expiration date.

Strike Price

The purchase or sale price of underlying stock that an option holder sees upon the exercising an option contract.

Support or Support Level

Represents a low price level for a specific financial instrument such as currencies, commodities, stocks, etc. below which prices had difficulty falling through.

Swap

An exchange of different streams of payments over a given period of time, in response to prior specified terms. The most common swap is an interest rate swap. In such a swap, one party agrees to pay a fixed interest rate to the other company in exchange for receiving its adjustable rate.

Swap Rate

The difference between the forward exchange rate and the spot rate of a currency. The spot rate is usually expressed in points.

Swing Trading

Trading strategy that involves taking advantage of short-term price shifts.

Swissy

The common trading term used for the Swiss Franc.