Financial Trading Glossary
These are some basic financial trading terms from A-Z
-A-
∟ What is Arbitrage? Arbitrage is the simultaneous purchase of cash commodities against the sale of cash commodities in the same in order to profit from a discrepancy in prices.
∟ What is an Asian Option? An Asian option is an option contract in which payoffs depend on the average price of the underlying asset during some portion of the life of the option.
∟ What is At-the-Market Order? An At-The-Market order or Market Order is an order to buy or sell a futures contract at whatever price is obtainable. These orders are particularly risky when trading low-volume financial assets.
∟ What is At-the-Money? At-the-Money is an option whose exercise price is the same as the current trading price of the underlying commodity.
∟ What is Auto-Trade? Auto-trade means opening and closing trading orders automatically without any human intervention. An auto-trade system uses computer algorithms to analyze the market 24/5 and place buy/sell orders when a certain set of criteria is met. » Expert Advisors (EAs)