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Home Dictionary A Alternative Trading System (ATS) Alternative trading systems (ATS) are platforms for coordinating large purchase and sale transactions. They are not as tightly regulated as stock exchanges. Examples of ATS include dark pools and ECNs. The SEC ATS regulation establishes the regulatory framework for these trading platforms. Short Covering
September 25, 2022 Short covering is closing a short position by buying back shares that were originally borrowed to sell short using buy orders to cover the orders. Wash Trading
September 25, 2022 Fraudulent trading is an illegal type of trading in which a broker and a trader collude for profit by providing misleading information to the market. Arbitrageur
September 25, 2022 Arbitrageurs are investors who exploit market inefficiencies of any kind. They are necessary to ensure that inefficiencies between markets are smoothed out or kept to a minimum. Axe
September 25, 2022 Ax (or “chopping axe”) refers to the desired position that the trader wants to take. Basket Trade
September 25, 2022 Basket trading is a portfolio management strategy used by institutional investors to buy or sell a large number of securities at the same time. Beneficial Owner
September 25, 2022 A beneficial owner is a person who enjoys the benefits of ownership, despite the fact that the ownership of the property is registered in a different name. Bid and Ask
September 25, 2022 The offer price refers to the highest price a buyer will pay for a security. Break Even Point
September 25, 2022 In accounting, the break-even point is calculated by dividing the fixed costs of production by the unit price minus the variable costs of production. Break-Even Price
September 25, 2022 The break-even price describes the change in value that only corresponds to covering the initial investment or cost. Buy Limit Order
September 25, 2022 A buy limit order is an order to buy an asset at or below a specified maximum price level. Buy Stop Order
September 25, 2022 A buy stop order is an order to buy a security only after the price of the security reaches the specified stop price. Buy to Cover
September 25, 2022 Buy to cover refers to a buy order that covers a trader’s short position. Buying Power
September 25, 2022 Purchasing power is the money an investor has to buy securities. Central Counterparty Clearing House (CCP)
September 25, 2022 A central counterparty clearing house (CCP) is an organization, usually run by a large bank, that exists in European countries to facilitate the trading of derivatives and equities. Clearing
September 25, 2022 Clearing is the correct and timely transfer of funds to the seller and securities to the buyer. Close Position
September 25, 2022 Closing a position means canceling an existing position in the market by opening an opposite position. Day Order
September 25, 2022 Day orders are limit orders to buy or sell securities that are valid only until the end of the trading day on which they were placed. Delivered Ex Ship (DES)
September 25, 2022 Delivered from ship (DES) was an Incoterm (an international commercial term) that applied to both inland and ocean shipping, and often to charter shipping. Disposition
September 25, 2022 An order usually refers to the sale of securities or assets on the open market. Ex-Ante
September 25, 2022 Preliminary analysis in financial markets refers to the forecasting of various indicators, economic and financial, by evaluating past and present data and parameters. Execution
September 25, 2022 Execution refers to the filling of an order to buy or sell on the market in accordance with the conditions placed in the order by the end client. Extended Trading
September 25, 2022 Extended trading is trading that takes place on electronic trading platforms outside the official trading hours of the exchange. Fail
September 25, 2022 Non-delivery (FTD) refers to the failure to meet one’s trading obligations. Fill Or Kill (FOK)
September 25, 2022 A Fill or Kill (FOK) order is an order that is intended to be filled immediately at the market price or specified price, or canceled if not filled. Financial Information Exchange (FIX)
September 25, 2022 Financial Information Exchange (FIX) is an information and data protocol used to distribute price and trade information to investment banks and broker-dealers.