The exchange sphere is very specific, and people often communicate in it in a language that is quite strange for the average person. In this article I will try to reveal as fully as possible all the most popular terms so that you can better understand what we are talking about when reading literature and news about investing and trading. You can always use the search in this article, which is available in any browser using the key combination "Ctrl" + "F". For some terms there is a Russian translation, for some there is not - this is due to the lack of such terms in Russian everyday life or its completely clumsy analogue, which few people use.
A
Acqusition
A corporate action that results from the purchase of a controlling interest in another company. This purchase can be paid for with either cash (including borrowed money), shares, or a combination of both.
All-or-None (AON)
This is the name of the type of order that allows you to either buy the entire volume specified in the order, or it will be cancelled. It is very similar to a Fill-or-Kill (FOK) order, with the difference that AON is valid until the end of the trading session, while FOK is instantaneous. An AON order can be canceled during the day until its conditions are met.
American-Style Option
A type of option that can be exercised at any time before the expiration date, as opposed to a European type, which can only be exercised after the expiration date. Most options traded on American exchanges are American.
Arbitrage
Simultaneous purchase and sale of the same asset on different exchanges in order to make money on price differences. Basically, this difference is microscopic, but with large volumes and virtually no risks, it can be profitable.
Ask/Offer price
Lowest current purchase price.
Asset Class (Asset Type)
An asset class is a group of different assets with similar financial characteristics that are governed by similar laws and regulations. There are three main types of assets: stocks, bonds and money market instruments (cash, currency, etc.). Other types include real estate, commodity markets and art.
Requirement to fulfill obligations under an option contract. Most often used when the option sold is out of the money and you need to deliver stock to the option buyer. This may be a debit from your account of shares already purchased in advance, or in their absence, the broker automatically buys these shares in your name and delivers them to the option buyer.
At-the-Money (About Money (about options)
ATM means that the strike price of the option is the same (or very close) to the current price of the asset.
Automatic Exercise
A procedure that allows the option holder, upon expiration of the contract, to receive in the money the asset for which the option was purchased, if the asset price at the time of expiration exceeded the strike price of the purchased option by at least $0.01. For example, if you purchased an Apple stock option with a strike price of $170 and the stock price at expiration (the closing price on the expiration day) was $170.05, then you would be delivered 100 shares for each contract purchased.
Back Month Contract
A contract with any other expiration month other than the current one. The term is often used to construct a calendar spread.
Backspread
An option spread in which more options are bought than options sold, with all options expiring at the same time. In this case, usually the premium on sold options exceeds the premium on purchased options and this strategy is aimed at sharp growth of the asset.
Backwardation
A situation in the futures market when the price of a futures contract is cheaper than the current price of an asset. The situation occurs infrequently in a falling market, since the futures price initially includes volatility, the current value of money, as well as all costs (in the case of deliverable contracts) and therefore it is at least more expensive than the current price of the asset by the amount of the interest rate. A recent example with oil, when at the current price of $50, futures for next year were sold at $45-48.
Banker's Acceptance (Bank Guarantee)
One of the money market instruments, which is a short-term debt obligation that is guaranteed by a bank in favor of a company.
Basis
The term has several meanings, but is most often used in the futures market to measure the difference between the current price of an asset and its futures value. For example, with an oil price of $60 and a futures contract price of $62, the basis will be 2. In various markets, the basis can be positive (most often) or negative (for example, during backwardation); it is often used in the grain market, when the basis can vary greatly depending on the expiration month in which the harvest may occur.
Basis point
A financial term associated with the measurement of percentage change. One basis point is equal to 0.01% or 0.0001. Most often applied to bank interest rates. For example, when the Fed raises rates by 0.25%, the interest rate is said to have increased by 25 basis points.
Bearish
A pessimistic view of the asset price. An investor who says that the price will decline in the future has a bearish view of the asset or market.
Bear Market
The term applies to an asset or group of assets whose prices are declining or are expected to decline.
Bear Spread
An option spread that is opened to profit from a decline in an asset. A put is bought at a higher price and a put is sold at a lower price.
B/A Spread
The most popular concept is a spread (as opposed to an option), which means the difference between the bid and ask prices, that is, between the purchase price and the offer price, or the difference between the maximum price at which you can sell and the minimum price at which you can buy. If the current quote for a stock is bid 50.15 to ask 50.20, then the spread here will be $0.05.
Beta
This ratio measures how correlated a stock is with the market (most often a leading index). It is most often used to assess how risky a stock is compared to the market as a whole. A beta of 1 indicates that the stock moves identically with the market (or index). A beta less than 1 indicates that the stock is less volatile, and a beta greater than 1 indicates that the stock is more volatile. For example, if a stock has a beta of 2. That is, if the market rises or falls by 1%, then the stock will rise or fall by 2%.
Big Boy Iron Condor
A modified Iron Condor option strategy in which strikes are extended to one standard deviation, allowing for a larger premium with increased risk. It is used when there is increased volatility and, accordingly, expensive options.
Black-Sholes Formula
A mathematical model that calculates the theoretical value of a European option. It was first published in 1973; before that time, the options market was quoted manually, more by eye, without the use of mathematical models. Soon after the publication of this formula, the options market began to progress greatly.
Black Swan
A term referring to unexpected events that have a strong impact on the entire market as a whole, most often they are either impossible or extremely unlikely to be predicted.
Bond (Bonds, Bonds)
A term that refers to fixed income securities. Most often, this term, in contrast to fixed-income securities, refers to bonds with a long maturity.
Break-Even Point
The price at which the position produces neither profit nor loss.
Broken Winged Butterfly
An option term that implies a combination of the option strategy of a long Butterfly and a short out-of-the-money call or a long Butterfly and a short put, where one side is wider than the other. Thus, a short (or sold) option provides money to buy the Butterfly and increases the success of the strategy.
Broker
An intermediary who acts between a buyer or seller and an exchange. An individual or a company without a brokerage license cannot directly contact the exchange, since the exchange has the function of correctly constructing the entire exchange trading infrastructure, and the broker deals with settlement issues, programs for sending orders to the exchange through which clients trade, as well as other issues with related to this.
Bullish
An optimistic view of the asset price. An investor who believes that the price of an asset will go up in the future has a bullish view of the asset or the market as a whole.
Bull Market
The implication is that an asset or market is rising or trending upward.
Bull Spread
An option spread that implies profit from the growth of an asset. A call with a lower strike is bought and a call with a higher strike is sold.
Butterfly Spread
An option spread with three different strikes that gives a profit if it expires at a certain price.
Buying Into Weakness
An investment approach that is based on purchasing heavily depreciated assets during periods of bad news or a decline in the market as a whole. This approach is widely used by Warren Buffett, who pre-selects fundamentally strong companies and buys them on bad news in anticipation of a quick recovery.
Buying Power (BP, Purchasing Power)
The maximum amount of capital that is available in an account for trading includes cash, positions, as well as borrowed funds provided by the broker. Many brokers lend funds (especially for day trading) so that their clients can buy more assets, which can result in more profit or loss for the traders, as well as more commission for the broker.
Simultaneously buying a stock and selling a call option. In case of inactivity on the market, it allows you to receive the premium from the sold option, while being insured by the purchased share.
Calendar spread
An option strategy that makes a profit from the expiration time is called a calendar or time spread. Most often, a long-range contract is bought and a nearby contract is sold (with expiration in the current month).
Call Option
An option that gives the buyer the right to buy an asset at a certain price specified in the contract. It is purchased in anticipation of an increase in the price of the asset, since in this case the option itself will become more expensive.
Call Writer (Option Seller)
A person who sells options and receives a premium for it. This can be any investor who meets the margin requirements.
Capital Market Security
A class of capital market securities (long-term investment instruments, as opposed to short-term money market instruments) including stocks, corporate bonds, and government bonds.
Carrying Cost
The total costs of owning stocks, options or futures, including commissions and dividends.
Cash
Cash (including cash equivalents) is a major asset class. Cash (or currency) includes foreign currencies.
Cash Account
A brokerage account that does not provide margin lending and in which shares purchased must be paid for with one's own funds.
Cash Balance
The total amount of money in the account.
Cash Equivalents
Cash equivalents, along with cash, are one of the main types of assets. Cash equivalents include short-term investment securities with high liquidity and high credit ratings that can be converted into cash quickly and easily. The maturity of cash equivalents must be less than three months. Money market instruments are often equated to cash equivalents because they are also liquid, have a short maturity, and do not lose value over time.
Cash-Settled Securities
A type of security (most often referred to as futures and options) that involves settlement at delivery between the buyer and seller in the form of cash, without physical delivery of the commodity. For example, settlement of grain futures involves physical delivery, while settlement of index futures involves monetary delivery.
Chicken Iron Condor
The Iron Condor options strategy, but with narrower strikes that are closer to the money and allow for more premium (50% closer to the strikes), increases potential profit and return on invested capital, as well as risk
Clearing House (Clearing House/Chamber, Clearing)
A clearing house acts as an intermediary between parties (buyers and sellers) in financial transactions. In the securities industry, this structure is most often called Central Counterparty Clearing, this structure is a financial institution that clears (settles) and delivers securities between investors.
Collateral
Financial assets against which loans are issued
A combination of option positions that is identical to stock ownership
Commercial Paper
A money market instrument that is unsecured short-term debt issued by a company and having an expiration date of less than 270 days.
Common Stock
A type of stock that gives its owners the right to elect members of boards of directors, vote on company policies, and receive company profits. In the event of liquidation, holders of common stock have rights to the company's assets after holders of bonds, preferred stock and other holders of company debt.
Contango
A term related to futures that is related to the price of the futures and its expiration time and occurs when the futures price is more expensive than the price on the spot (current) market. In most cases this happens, since taking into account inflation and possible risks, which are included in the futures price, the future contract is almost always more expensive than the current value. The reverse situation is called backwardation.
Contract Month
The month in which the contract expires. Most often applicable to futures and options.
Contract Size
The size of the underlying asset for which the contract is issued. For example, for an oil futures contract, this is 1,000 barrels of oil. For a stock option, this is always 100 shares.
Contract Week
The week in which the contract expires. For most options, in addition to monthly and quarterly options, there are also short-term weekly options.
Contrarian
To have a contrary point of view is to reject the generally accepted opinion of the masses. This view is used by investors who buy when the market is falling (that is, contrary to conventional wisdom that the market will continue to fall) and sell when it rises.
Corporate Action
An action or process initiated by a company that always has an effect on the securities of that company.
Cost Basis
The original price paid for the stock plus commissions, which is all the costs that went into acquiring it.
Cost Basis Reduction
Reducing cost by reducing profit potential but increasing the likelihood of profit. The most common example is selling a long call option after buying a lower call option. Thus, having received a premium from the sold option, we reduced the cost of entering the position, but limited the profit potential.
Coupon Payment
A term referring to periodic payments to investors who hold fixed income securities (bonds). The term refers to the time when a bond had tear-off paper coupons that were presented by the holder to receive cash at the originally stated yield. There are also zero-coupon bonds, which do not pay interest on the bonds, but are initially issued at less than par value.
Coupon Rate
The annual interest paid on a bond. For example, for a bond worth $1,000. and a 5% coupon rate, the annual payment would be $50.
Cover
Exit from the current open position
Covered Call
The combination of a stock purchased and a call option sold.
Credit Spread
An options strategy that will result in you getting cash into your account (by selling a higher-priced option and buying a cheaper option) is the reverse of a spread, where you pay to open a position by buying a higher-priced contract and selling a cheaper contract. A credit spread is most often purchased when one expects that the price of an asset will not change much, thereby expecting to profit from the depreciation of the sold option.
Cycle
Expiration dates that apply to a particular asset. Each asset has its own dates, for most of them the cycle is quarterly. But grain cycles are shifted in time, associated with sowing and harvesting.
Day Order
Application validity period. This order will be canceled as soon as the trading session ends if it was not executed.
Days to Expiration (DTE, Days Before Expiration)
The number of days until the expiration (completion) of an option or futures contract.
Day Trade
A transaction that was opened and closed during the same trading session.
Day Trader
A trader who attempts to profit from intraday fluctuations in stocks, either by going long or short (by buying or selling). Day traders, or day traders, usually never roll over positions overnight.
Debit Spread
An options strategy that means you paid more for it than you received. It consists of buying an option that is closer to the current price of the asset and selling a more distant and cheaper option.
Decay
A term that means the value of an option decreases over time. The term "decay time" is also used. The worst enemy of the option buyer and the best friend of the option seller, so if the asset does not move anywhere, then the cost of the option becomes cheaper every day.
Declaration Date
The date on which the future amount of dividends on shares and the day of payment are announced.
Delta
One of the main components of the option price, which shows how much the theoretical price of the option will increase if the asset changes by $1. It is measured from 0 to 1; for an option strike close to the current price, the delta is approximately 0.5. The more an option is in the money, the closer the delta is to 1.
Delta Neutral
Delta neutral is a strategy where the value of the delta on options is completely compensated by the opposite position on stocks. The delta neutral strategy involves making a profit from changes in volatility, while minimizing the change in value from the direction of the asset's movement.
Derivative (Derivatives, Derivatives)
A type of security whose price is dependent on an underlying asset. For example, an option on apple stock is a derivative on apple stock, and the movement of the stock price greatly affects the price of the option. Also, oil futures depend on oil prices in the current spot market.
Some freedom of action given by the investor to the executor of his application or instructions. For example, a typical example would be some leeway when sending a broker an order to buy 100,000 shares for no more than $50 per share at the current price of 49.50. Thus, the broker has the opportunity to buy shares based on his experience at the optimal price, without significantly lowering the price, whether he would place the entire order at once or buy at the market.
Dividend
A payment due to a stockholder from a company's retained earnings. The amount of dividends is set by the board of directors and may include not only cash payments, but also shares or other company property, but this is extremely rare. In the United States, companies typically pay dividends every quarter, but other periods may apply.
Dividend Yield
The annual percentage rate of dividends paid relative to the stock price.
Duration
The term has two meanings. The first one relates to trading and means the period from the beginning of a transaction to the expiration of the contract. The second value is typical for bonds and characterizes the change in yield when the interest rate changes.
Early Exercise
A feature of American options that allows execution (delivery) before the contract expiration date
Earnings-Per-Share (EPS, Earnings Per Share)
Earnings per share are one of the key financial indicators that allow you to analyze the profitability of a company. EPS is used to determine how much profit the company's shareholders will receive. It is calculated by dividing the company's net income by the number of shares.
Equity
Equity is one of the key concepts in finance and in the balance sheet; it represents the company’s own funds, including shares. This term is also widely used in stock trading and usually allows you to estimate the amount of equity, taking into account the purchased shares.
ETF (Exchange-Traded-Fund, Exchange Traded Fund)
An exchange-traded fund that includes shares of a certain sector or index and thus copies its movement. The Russian analogue is mutual funds or mutual funds, except that the commissions for ETFs are several times lower.
European-Style Option
A type of option that can only be exercised on the expiration date and not otherwise.
ETN (Exchange-Traded-Note)
This instrument is an unsecured and unsubordinated debt security that is issued by a bank. ETNs are designed to replicate the movement of an index or sector, but unlike ETFs, they do not directly own any stocks or other real assets.
Ex-Dividend Date
The date on which the investor who purchased the shares will no longer receive dividends. Since the actual delivery of shares occurs on the second day (until September 2017 it was on the third day) after the purchase of shares, then, accordingly, in order to receive dividends you need to buy shares two days before the date of fixation of the register of shareholders, accordingly, the very next day you no longer fall into this registry. Currently, the Ex-dividend date falls one business day before the Record Date.
Exercise
Exercise means the procedure for delivering an asset under an option. For call option holders, this means purchasing shares at the strike price. For put option holders, this means selling the shares at the strike price (if the option holder does not own the shares, then he gets a short position on them). Execution makes sense only if for calls the current asset price is above the strike price, for puts - below the strike price. Typically, very few options are exercised because it is usually not profitable or only makes sense on the last day of trading.
Exotic Option
Exotic options are non-standard options that have conditions that differ in terms of contract size or date from those traded on the exchange. To trade them, they usually resort to the over-the-counter market, where the buyer independently negotiates the terms of these contracts.
Expected Move
The amount of growth/decline that the stock price may experience based on current implied volatility.
Expiration
The day after which traded contracts of a given date are no longer traded and must take delivery (if the option is in the money) or become worthless.
Extrinsic Value
The value of an option consists of intrinsic value and time value. The time value, also called the risk premium, depends on several factors (mainly the distance from the current price of the underlying asset and strike and volatility), as well as the supply and demand for a given option.
Face Value
The value of a security when it was issued. For a bond, this value is often $1,000. Often the market price of shares differs greatly from the nominal value (especially for shares), as supply and demand drives the price far from its original values.
Fill-Or-Kill (FOK)
An order parameter that implies that the order is either completely executed at the time of placing or is canceled completely.
Fixed Income
A term that applies to bonds, which represent the debt of a company for which it pays a coupon to the bondholders. After the bond expires, the owner returns the bond to the issuing entity, receiving the face value in return.
This term has several meanings. The first of these relates to trading and means that the trader does not have open positions in the current stock or the market as a whole. There is a go flat button in almost every trading platform, which means closing all positions. The second meaning is used to describe the current situation on the market - trading in a sideways trend or a very narrow range without directional movement.
Options for which individual conditions can be selected that are not available on the exchange (for example, a longer expiration period or price). Applicable to stocks and indices, conditions are negotiated individually with the seller of such options. Often purchased when you need to hedge for a long period (more than two years).
Float (Free Float)
The term applies to all shares that are traded on an exchange and that can be freely purchased. Together with those restricted in circulation (for example, those reserved for the company or the state), they constitute the total volume of the company's shares.
A broker who directly works in the exchange pit and executes orders for clients. Before electronic trading, this was the only method of order execution; nowadays it is used less and less in trading.
A trader who trades directly in the stock market for himself.
FOMC (Federal Open Market Committee)
This commission, together with the Federal Reserve, supervises all markets. Implements US monetary policy and regulates interest rates.
Front Month Contract (Current Contract)
A term applied to a contract with an expiration month close to the current date.
Fundamental Analysis
An investment appraisal that uses fair value calculations based on qualitative and quantitative data. The goal is to compare the results of such an assessment with the price on the market and make a purchase or sale based on the undervaluation or overvaluation of the asset being valued.
Futures
Futures are a type of derivative that is traded between buyers and sellers and that has certain standardized parameters and an expiration date. The buyer and seller agree to a transaction at the current price for delivery or settlement of the contract on the expiration date. Initially, the purpose of futures was the actual delivery of assets on a given date, but subsequently most of the contracts began to be purchased for hedging and 95% of them are closed before the expiration date.
Futures Options
A type of options whose underlying asset is a futures. Holders of such options receive futures upon expiration.
Future Volatility
A measurement of the amount of daily movement that will happen in the future. Unlike historical volatility, future volatility is unknown to us, but some analysts try to predict it based on past movements and future news.
Gamma
One component of the option price (Greeks), which measures how much Delta will change if the price moves by $1.
Going Public
Synonymous with public offering or IPO.
Good-Till-Cancelled (GTC)
An order type, which means that the order will be active until it is executed or canceled. Most often, brokers have a certain period for such applications from 120 to 180 days.
Greeks
Parameters responsible for the sensitivity of the option to various changes such as: the price of the underlying asset, time, volatility and interest rates. The Greeks are named because all these parameters are named with the letters of the Greek alphabet: delta, gamma, theta, vega, rho.
Hedge/Hedging
A trading (and other) strategy that involves an attempt to reduce risks by opening additional (often opposite) positions.
High Frequency Trading (HFT, High Frequency Trading)
Trading designed for high speed intensive activity using computer algorithms and very fast transactions.
Historial Volatility
A measure of the daily price fluctuations of an asset over a specified period (the past).
Holder (Holder, Owner)
Anyone who bought an option or stock
Hostile Takeover
A term applied to any company that has become the target of an unwitting takeover.
Immediate-Or-Cancel (IOC)
An order option that implies immediate execution or cancellation, unlike FOK, can be partially executed, and the rest will be automatically canceled.
Implied Volatility (IV, Implied Volatility)
A term that applies to current market conditions when calculating the price of an option. While historical volatility is known, future volatility is unknown, current volatility reflects expectations. Implying volatility is dynamic and constantly changes in accordance with supply and demand for nearby option strikes.
Index
A combination of the prices of several assets into one number.
Index Option
An option whose underlying asset is an index
A class of securities that, unlike direct investments (like shares), are not owned by any investor, but are a mechanism that raises money from investors for the purchase and sale of any assets. Examples of such indirect investments are hedge funds and mutual funds.
Initial Public Offering (IPO)
The process of converting a private company into a public company by initially issuing shares and trading them on a stock exchange. In this way, part of the company's shares are transferred from their original owners to other individuals and companies.
Institution
Huge financial institution, involved in professional investing and trading.
Intrinsic Value
The component of an option's value (along with time value) that arises when the price of an asset rises above or below the strike price of a call/put option. For example, an option with a strike price of 50 would have $5 in intrinsic value when the asset price is $55. At-the-money (ATM) or out-of-the-money (OTM) options have no intrinsic value, and the value of the option is entirely time value.
Inversion
Selling puts above calls or selling calls below puts.
In-The-Money (ITM, Option in the Money)
An option that has intrinsic value.
An options strategy consists of a combination of two spreads that generate profit in a certain price range.
IV Expansion/Contraction (Implied Volatility Expansion/Contraction)
Return to the average after any prolonged stagnation or sudden movement.
IV Rank (Implied Volatility Value)
A value that tells us how high or low the volatility is for an underlying asset over a certain period of time.
Junk Bond
Bonds that have a low credit rating and have a greater risk of default than safe bonds. Traditionally, these include bonds rated BB(Ba) or lower, which are assigned to them by rating agencies such as Standard & Poor's and Moody's
Ladders
A trading method using options to lock in profits at certain points.
Layering Up
An increase in an existing position taking into account the initial expectation of price movement.
Options with an expiration date of one year or more.
A term applied to options strategies that contain more than one component. For example, when constructing a Straddle, both the put and the call must be bought or sold at the same time, in which case we get two legs. If a trader bought them separately and the price of one leg went far, then they say that the trader was left without a leg.
A term used in options trading where more than one component is involved. In the above example, at the moment of purchasing the first leg, the trader will be considered Legging in, that is, entered into the strategy, but for now only one of its components.
Leverage
Using more funds than your own when trading or opening positions.
Leveraged Products
Financial instruments with underlying assets that involve a larger size of the underlying asset than was originally intended for the type of instrument. An example would be ETFs that have 2 or 3 leverage on the rise or fall of the index.
Limit Order (Limit Order, Application)
A conditional order that states that a specific asset must be bought or sold at a certain price or better. In addition to such an application, the duration of its validity is indicated.
Liquidity Risk
The risk that arises in low-liquid securities/contracts and where you cannot close the deal or may have to incur a large loss to do so.
A call or put option traded on a national options exchange.
Low Implied Volatility Strategies
Option strategies that bring profit when volatility increases, as well as from directional price movements.
Margin
The amount of money you need to borrow to buy securities
Mark
A term used to calculate the yield of a security. It is used when you need to find out the profitability from a certain point to the current date.
Marketable Security
A security is a stock or bond that is traded on an exchange and can be easily bought or sold.
Market Efficiency
An economic theory that states that the price of a security reflects all relevant information about it. Proponents of this theory argue that all information is taken into account in the price and it is impossible to make money from fluctuations in securities. Opponents of this theory argue that markets are inefficient and can be used to make a profit.
A member of an exchange who is responsible for maintaining quotes for an asset by placing orders to buy and sell in the absence of orders from other buyers and sellers.
Market Order
A type of order that involves instant execution at current market prices. If there are other participants in the market to execute such an order, then it will be executed or remain unexecuted until the trading session closes. The downside is that in a low-liquid market, the execution price can be much worse than the last transaction price.
The combination of a long stock position and a purchased put option.
Merger
A corporate action that results in two companies merging into one. Unlike absorption, this process usually proceeds more peacefully and mutually.
Money Market Instruments
A type of security that has a short term (less than a year). Examples include bills of exchange, bank receipts and guarantees, and certificates of deposit. Money market instruments with a maturity of less than three months qualify as cash equivalents.
Monte Carlo (Monte Carlo Method)
A statistical simulation designed to calculate the probability of a model's profit.
Mutual Funds
A type of indirect investment, mutual funds are managed by professional fund managers who invest investors' funds in a single pool. Investors in such funds do not directly own any stocks or bonds, but only a share of such fund.
Naked Call or Put
A Call or Put option that has no opposite closing position
Net Liquidation Value (Net Liq, Net Value of Positions)
The value of any asset or the entire account, taking into account open positions in the event of instant closure of such positions.
Open Interest
The total number of open contracts in a series of options or futures.
Open Position
Any position that has not yet been closed or expired.
Option
A type of derivative that gives the right, but not the obligation, to buy or sell an underlying asset at a specific price on (or before) a specific date.
Optionable Stock
A stock on which an option exists.
Options Clearing Corporation (OCC, Options Clearing Company)
The OCC provides centralized clearing and delivery for 15 exchanges. Financial instruments for clearing include options and commodity and financial futures. The OCC acts as a guarantor of compliance with the obligations of both parties to the transaction and operates under the regulation of the SEC (Security Exchange Commission) and CFTC (Commodity Futures Trading Commission).
Out-The-Money
This term means that the strike price for a call option is above the current price of the underlying asset or that the strike price for a put option is below the current price. An out-of-the-money option implies that there is no intrinsic value, but only temporary value.
Over-The-Counter (OTC, Over-the-Counter)
Transactions that are negotiated and executed between two parties without the use of a centralized exchange are called over-the-counter.
Pairs Trading
Trading is based on a stable correlation of two assets.
Parity (Parity, Equality)
In options trading, means that the option is traded at a price equal to its intrinsic value, i.e. there is no time value, applicable for deep-in-the-money options.
Par Value
Synonym for Face Value
Pattern Day Trading (Intraday Trading Rule)
A FINRA regulatory rule that requires fewer than 4 intraday trades to be carried out within five business days. However, if the number of transactions is less than 6% of all transactions during these five days, then the trader is considered to have not violated this rule. This rule applies to small Cash Accounts; usually brokers artificially limit such accounts from more than 4 transactions per week, otherwise this entails blocking such accounts.
The risk that an option will be exercised exactly at the strike price. For the option writer, this is the risk of receiving a possible call for delivery after the market closes on Friday, which means the seller could be left with a short position through the weekend, with the difference between receiving such a call being as little as 1 cent off the strike price.
Portfolio Margin
Systematic calculation of margin requirements using risk management methodology. It is used to calculate complex portfolios for accounts that amount to more than $100 thousand and the total requirements for which are much lower than for other types of accounts.
Preffered Stock
A type of stock that typically entitles the holder to increased dividends but does not provide voting rights at shareholder meetings. Dividends on preferred shares are paid first, before dividends on ordinary shares. In the event of liquidation, preferred stockholders are closer in line for distribution of the company's assets than common stockholders, but after bondholders.
Premium
The money paid by the buyer to the seller of the option.
Primary Market
The term is applied to the capital market where the initial public offering (IPO) takes place.
Probability of Profit/Success
Used to calculate the probability of making a profit on options at expiration. For spreads, for example, the calculation is by dividing the maximum loss by the distance between strikes. For example, if you sold 100/105 calls for 2.0 ($200), then the maximum loss is $300. If you divide 300 by 500 (that's (105-100)*100 shares), we get a 60% chance of making a profit.
Probability of Expiring
The likelihood that a stock or index will be above or below its strike price at expiration.
Probability of Touching
The chance that a stock or index will move higher or lower at any time before expiration. This probability is always higher than the expiration probability, since the entire period is taken into account, and not just the expiration day.
Put/Call Ratio
It is often considered as an indicator of investor sentiment, as it shows how much calls and puts have been traded and what is the open interest for them. Typically, a ratio above 1 indicates bearish investor sentiment.
Put Option
An option that gives its holder the right to sell a share at a certain price.
Put Writer (Option Seller)
A trader who sells put options and receives a premium from the buyer of the option.
Quote
The current bid/ask of a specific asset in the market.
A spread in which more options are sold than purchased.
Realized Volatility
Synonymous with historical volatility.
Record Date
The day on which an investor must own a stock (subject to delivery of shares on the third day after purchase) to receive the dividend.
Resisitance
A technical analysis term that characterizes a certain price above which an asset has difficulty moving. Technical analysts are convinced that the price must first test the price several times before breaking through.
Restricted Stock
Refers to all shares held by employees of the company itself and other persons directly related to the company and its financial results. Such shares can only be sold in accordance with the regulations established by the SEC.
Reverse Stock Split
A type of corporate action that reduces the number of shares outstanding by simultaneously increasing the price of the shares, while the company's capitalization remains the same. For example, if you had 100 shares that were trading at $10, then in the event of a 1k5 reverse split, you would be left with 20 shares, but at $50.
One of the option Greeks, which measures the change in the theoretical price of an option when the interest rate changes by 1%.
Rights Issue (Posting Through Subscription)
A type of corporate event in which a company offers shares to its current shareholders. Technically, this is similar to the payment of dividends, with the difference that it is not a payment, but certain rights to buy a certain number of securities at a certain price before they are released to the market.
Riskless Arbitrage
A type of arbitrage transaction in which the probability of profit is theoretically guaranteed.
Risk Premium
Synonymous with the time value of an option.
Roll
Closing the current option and replacing it with another one with a later expiration date.
Scaling
An investment approach based on increasing a position when the price moves for the worse. For example, if an investor was initially going to purchase 10,000 shares, then perhaps he would initially purchase 2,000 for example at $25, and would add 2,000 each as the price moves to 24, 23 and beyond until he has a full position. This approach allows you to get a better price than originally planned, but there is a risk that either the position may not be fully filled, or that it would make sense to fix a small loss initially and wait for the fall to stop and take the entire position at a lower price.
Scalp, Scalper (Scalper)
A trader who opens and closes positions very quickly, making microprofits on a huge number of transactions.
Secondary Market
The market in its usual sense, where shares are bought and sold after they have gone public (IPO).
Securities and Exchange Commission (SEC, Securities Commission)
A US government agency that supervises and regulates the entire securities market.
Selling Into Strength
An approach that is opposite to most investors, based on trading down a stock or other asset that has grown very strongly, that is, selling contrary to expectations and buying the majority.
Selling Premium
Selling options in anticipation of a decrease in volatility.
Series
Classification of options by expiration date and strike price.
Shares Outstanding
The term refers to all shares issued by a company, including both publicly traded and restricted shares. This value is necessary to calculate many financial indicators including EPS.
Short Sale
A position that occurs by borrowing shares in anticipation of a fall in the price of those shares. Described in more detail
Slippage
The loss resulting from buying at the ask price or selling at the bid price, since your financial result will be calculated based on the middle of the spread between the bid and ask price and your price, which is equal to the ask. Slippage most often occurs on illiquid assets where the spread is large, so it is not recommended to start trading on such assets.
Special Dividend
Refers to any dividend that is paid to shareholders outside the normal dividend schedule.
Specialist
A member of the exchange whose functions include maintaining quotes from both buyers and sellers, ensuring the liquidity of the asset.
Spin-Off
A type of corporate action that results in the sale of a portion of current assets or the issuance of new shares to form a new, independent company. Most often, spin-offs involve the issuance of new rights that offer current shareholders the opportunity to purchase shares in the new company.
Spread
An option position that involves buying and selling an option with different strikes or expirations. For example, buying a call near the money and selling a call at several strikes out of the money, or vice versa. Allows you to obtain a cheaper position (compared to a regular option purchase) by reducing the profit potential.
Standard Deviation
A statistical measure of price fluctuation. Often used to predict how likely a price will remain within a given range and allows you to estimate the potential for profit or loss on an option.
Stock Market
The term applies to the entire stock market as a class of assets that are traded on exchanges.
Stock Split
A corporate action that results in an increase in the number of shares outstanding, thereby reducing their price, without changing the market capitalization. For example, Apple shares that were trading at $700 a few years ago were split to a 7x1 ratio, whereby shareholders who had 100 shares at $700 received 700 shares at $100. Typically, this process serves to create a more attractive low price to buy.
Stop Order
A conditional order that is activated and sent to the market when a certain price is reached. Typically used to protect existing profits or to secure a small loss when an asset moves in an undesirable direction.
Straddle
An options position that involves buying a call and a put with the same strike price and expiration. It is purchased in anticipation of a major movement in either direction; it is expensive, since both options are purchased here.
Strangle
An options position that involves buying a call and a put at different strike prices. Usually a straddle is cheaper because a cheaper leg is purchased, in the direction of the least expected movement.
Strike Price
The price at which a stock can be bought or sold if the option is exercised.
Strike Price Interval
A term used to define the strike price increment. For shares cheaper than $50, the strike step is $2.5, that is, a series of options will have strikes of 50, 52.5, 55, etc. For stocks with prices between $50 and $200, the strike increment will be $5, and for stocks above $200, the strike increment will be $10. There are exceptions, especially when carrying out splits.
Suitability
The term applies to recommendations (perhaps even at the legislative level) that can be given to a particular investor in accordance with his wishes and investment strategy, taking into account his risk appetite, opportunities and goals.
An options strategy that involves buying the spread at the money and selling the spread out of the money.
Support
A technical analysis term that implies that there is a certain price level below which the price has problems moving. Technical analysts believe that the price will bounce off this level rather than break through it. Often used by market makers and large players for a false breakout and buying from sellers in footsteps.
Synthetic
A position that repeats a similar position, but made using different tools. For example, a synthetic long on a stock can be replicated by buying a call and selling a put on the same asset.
Systematic Risk
A risk that cannot be eliminated through diversification.
Takeover
Synonym of acqusition
Target Company
Purpose of acquisition or merger.
Technical Analysis
An investment/trading methodology that involves predicting future price direction by analyzing historical prices and trading volume. Technical analysts rely on charts and other information to gauge the strength or weakness of an asset to predict its future price.
Theoretical Value
Option value derived using mathematical model. Very often it may not coincide with the current price, since market participants assume a different volatility than the formula calculates.
Theta (Theta)
One of the option Greeks, which calculates the change in the option price depending on the remaining time until expiration.
Tick Size
It means the minimum price movement of an asset. For example, 1 tick of an oil contract is equal to 1 cent, that is, a change from 50.00 to 50.01
Time In Force
Refers to the validity period of the application, including Day order, GTC, IOC and FOK, which we wrote about earlier.
Time Value
Synonym for extrinsic value
Tranche
Average trade size, if for example your usual trade size is 5 contracts, then 2 tranches will be 10 contracts.
Treasury Bills (T-Bills, Short-Term Government Bonds)
Short-term US bonds with a maturity of less than one year. They are zero-coupon and are initially issued at a discount to face value.
Treasury Bonds (T-Bonds, Long-Term Government Bonds)
Long-term U.S. bonds with maturities ranging from ten to thirty years with semiannual coupons and a regular par value of $1,000.
Treasury Inflation-Protected Securities (TIPS)
A U.S. government debt security that is indexed to inflation. TIPS pay coupons semiannually, have a par value of $100, and have maturities ranging from 5 to 30 years.
Treasury Notes (T-Notes, Medium Term Government Bonds)
US medium-term bonds with maturities from 1 to 10 years. Coupons are paid every six months and have a face value of $1,000.
Undefined Risk
The risk associated with an uncovered option when the maximum loss is unknown.
Unsystematic Risk
The risks of a particular company that can be reduced through diversification.
One of the options Greeks, which measures how much the option price will change if volatility changes by 1%.
Vertical
An options position that involves buying and selling two different options with the same expiration date.
VIX (Volatility Index)
An index that calculates implied volatility for the S&P500 index
Volatility
A measure of fluctuations in the price of a stock or index. Defined as the annualized standard deviation and used to calculate option prices.
Volatility Skew
The difference in implied volatility of equidistant opposite options. For example, the difference between the volatility of a 45 call option and a 45 put option at the current price of 40.
Warrants
A derivative instrument that gives the holder the right to buy specific shares at a specified price within a specified period of time. Unlike an option, here there is no delivery of securities to your account, but only the possibility of purchasing them for you at a specified price.
Watchlist
A list of securities that are constantly monitored for investment purposes.
Weeklies
Refers to a type of option that expires at the end of a specific week (as opposed to standard monthly options).
Writing an Option
A figurative expression implying the sale of an option to the buyer, that is, the opening of a short position.
Zero Coupon Bonds
Bonds that do not generate coupon income, but are initially issued at a discount, that is, cheaper than their face value. Their owners will profit after their expiration, receiving their face value.
A
Iceberg application– an exchange order in which the trader, in addition to the main quantity of securities, also indicated a reserve quantity. The reserve quantity of securities specified in the application is not disclosed to other trading participants when viewing the quote queue, but is used by the trading system when registering a transaction.
Climbers– players for promotion.
Ask, ask(from the English “ask”) - an application (sometimes the best application) for sale. “Where are the asci?”
B
Grandmas, loot, grandmas, grandmas, beans- money.
Underlying asset– a commodity, security, any exchange-traded asset used as the basis for a derivative instrument in the form of a futures or option.
Bayback(from the English “buy back” - buy back) - repurchase of shares by the issuer.
Bucks(from American slang “green backs” - dollars) - US dollar.
Vigilant bidok– a buy order that a trader places close to the current price level in the hope of buying on a pullback, but is ready to quickly cancel this order at the first sign of a serious downward movement.
Run ahead of the locomotive– trade ahead of the curve; be " smarter than the market"; “buy just before the rise starts” or “sell just before the fall starts.” Running ahead of the locomotive and not tripping over the sleepers means “trading ahead of the curve for quite a long time, without making mistakes.”
Non-cash- non-cash money.
Chainsaw– especially strong intraday price fluctuations. “Ten years riding a chainsaw – memoirs of a margin maker.”
Crazy paper– “second” or even “third tier” paper, which is growing very aggressively. An example is ordinary shares of UAZ in January 2006 or Ufaleynickel in its best times.
Bid, bids– an application (sometimes the best application) for a purchase. The expression “Where are the bids?” means: “At what price level are the best bids to buy?”
Bidding– buy, place purchase orders. See also play from purchase.
Bidoviki– traders placing limited purchase orders.
Fleas– one-, two- and five-minute candles on an intraday chart.
Fornicator– chaotic movements within the day. From the traders’ chat: “in Sur Prefe, of course, the whore is good, and you can get into shorts and long.”
Outset– zero or horizontal trend, including intraday. “What's going on in the market? “Ah, sideways.”
Blank– a limited order with a large volume placed against a strong price surge. “If they eat that one hundred ton blank, then we’ll go up and further.”
Hang out– be in the price range for some time. In most cases, this verb is used to characterize a sluggish market, which is dominated by a horizontal or zero trend.
Beavers– bonds of the Bank of Russia (OBR);
Take- buy. This term is often used in oral instructions.
Take by ask(or take according to offers) - buy at offer prices.
Take from yourself- borrow money in your own name.
Take over– 1) the same as taking from oneself. 2) buy at your own expense.
Take any ( Also take from the market)– buy at the price offered by sellers. Those who want to open a long position or close a short one usually take any before the start of a new upward trend.
Bulya, yard(from the English “billion”) - billion
Boom(from the English exchange jargon “boom”) - a sharp increase in trading volume, usually accompanied by an increase in price. B. usually occurs at the beginning or middle of an uptrend.
Storm in a teacup– strong price movement within a day; strong intraday trend. See also Glass.
Bourgeois, idiots– 1) non-resident investors; 2) representatives of large Western financial and industrial circles. The same as the Westerners.
Bull– any buyer, the word is taken from international jargon.
Be in the money- to be a winner. “He’s in the money today,” “I’m all in the money.”
To be in the cut– to be a winner on scalps.
Be in the flash– be a winner at the end of the day and close all positions;
Bychara (bullish)– a pronounced, stubborn buyer(s).
Bullish trend- an upward, growing trend. A market condition in which each new bottom is higher than the previous one.
IN
Fall- fall (about price). “Well, that’s it, they fell down...”
Variation– variation margin. “I looked at the clearing, there was a lot of variation, so I decided to cash out some of it.”
Catch up(see also buy after or sell after) – make a trade in the direction of the price movement. If the price of an asset rises, buy at the market; if it falls, sell at current market quotes, following the current direction.
blow- sell. “Give him a hard time.”
Upper bar– the upper limit of price changes during the trading session. “... after that the price hit the upper limit, and I need to cover my shorts, I’m walking around the stock exchange all blue.”
Take money– win. “No one takes money” - no one wins.
Invest ( Also to pack, to pack)– invest money in securities, buy. “Well, eagles? London opened in positive territory, it’s time to invest!”
Get into the minus ( Also get a margin call)– obtain a debit balance on the trading account; open an overdraft.
Fly in- lose big. “... then he flew in and began to respect his colleagues who had been in the market for ten years.”
Pour in- sell. Usually a large batch of securities is poured in. They will never say about a small scalper on the exchange that he gave money to someone.
Invest– means to buy a block of shares or bonds for a long period of time. Large investors usually invest.
Enter the market– start an operation, open a position.
Wolf– a self-confident, rarely losing player who always has his own opinion about the market prospects. Very often sheep come to the wolf for advice. As a rule, V. stoically endures a loss and always wins back.
toss and turn- handle large amounts of money.
Toss and turn- to do for some time a large number of transactions. Scalpers usually toss and turn. Very often, the consequences of tossing and turning are loss of money and general psychophysiological fatigue of the player. “Today I tossed and turned like a fool all day, earned 12 thousand, and the commission came out to 18”
Sell, sell– sell securities either at the end of a rise or before the start of a fall. In an illiquid market with a large spread, for example, in the market for Russian “second-tier” shares, V. means “sell at the offer price.” “They sold this guy some kind of illiquid property, and he’s been suffering ever since.”
Buy– open a long position, buy.
Go on sale– open a short position, sell.
Second echelon– a collective name for shares of small and medium-sized Russian enterprises. They periodically become illiquid; in addition, this group of shares is characterized by unpredictable price fluctuations (see First Echelon).
Admission ticket– the minimum amount that must be deposited into an account at a brokerage firm in order to gain access to trading.
Squeeze, squeeze– make money during weak price fluctuations in a horizontal corridor.
Break even– complete the operation with a zero result. It also means that at the end of the trading session the player completely closed his open positions in futures or options (see also Scalper, scalp).
Get money, reach the full ruble– break even, sell all securities.
Go to supply– hold an open position in futures or options until the expiration (delivery) date and be obligated to buy or sell a certain amount of the underlying asset.
Buy the morning gap– buy shares after a strong downward push with a gap. “The bulls began to buy out the morning gap, but the quotes rolled back to the minimum.”
Takeaway– a sharp non-stop rise in prices. It can also characterize the outcome of the speculator’s game. If a trader is taken out, it means that he has seriously lost. In ancient times, the stock exchange crowd carried the bankrupt, feet first, out of the stock exchange building and threw him onto the sidewalk.
Exit by foot ( Also spit out the position)- close to the stop.
Release- give the opportunity to close without loss. For example: “He took shares for four and a half rubles, then the market sank, and he was released only two weeks later.” This means that after two weeks the price again reached the level of 4.50 rubles.
Jump out, jump out of the papers– sell, get rid of most of the position.
Shoot(about paper) – go up sharply. “Look how Gazprom shot!”
Pull out the body– sell some of the securities that have increased in price in order to get back the money originally spent. “You pull out the body first, and then you scalp.”
Shaking out the boom d – force small and medium-sized traders to sell securities before the start of a new upward trend. It is usually large traders and market makers who shake out the securities, lowering the price and breaking the stops.
Webovka– foreign currency loan bond of Vnesheconombank (VEB).
Limp glass, empty glass– a situation when trading is characterized by a relatively small number of submitted bids (see Depth of Market).
G
Gas, Gazik, Gazgen- Gazprom shares.
Nails– long, sharp gap-shaped candles.
Blank strip- this phrase is used to characterize a situation when there are a lot of orders on the upper bar, but no one is selling, or there are no buyers on the lower bar.
Head
Blue chips, doves (from the American exchange jargon “blue chips” - blue chips) - shares of American companies that are part of the Dow Jones index. In a broader sense, shares of large, well-established companies that pay regular dividends. In Russia, blue chips include shares of Gazprom, LUKoil, Norilsk Nickel, Rostelecom, Sberbank, VTB, Surgutneftegaz and some others. The term blue chips is associated with American card poker; in this game, blue chips are the most expensive.
Green(from American slang “green backs” - dollars) - US dollar.
Gurvinnik– market “guru”, experienced analyst. Sometimes this word has an ironic connotation. “What will our gurvinnik say today?”
Gap(from the English “gap”) – a morning or news gap in prices, an abrupt change in quotes.
D
Move the market– give prices the desired direction. The market is usually moved by large players, market makers.
Dvizhnyak– a strong intraday trend on good volume. Catching a mover, entering a mover, riding a mover means successfully playing on a strong trend.
Hold purchase– stand in a long position, do not sell.
Keep selling– stand in a short position, do not buy.
Johnson, Dodik, Doe– the Dow Jones index, the so-called blue chip index, consists of 30 largest companies USA.
Diver– divergence.
Day– daily scale chart.
Driver– the main news that pushes market quotes.
E
Unit- one million dollars. “He had a unit, his own personal broker, analyst. But I still lost everything.”
AND
Marriage on paper– 1) purchase of paper for long term; 2) holding the paper despite the fact that its rate is falling.
Z
Download- invest money in some kind of paper. For example: “He loaded himself with LUKoil to the very tonsils”
Twitch– unpredictable intraday price fluctuations.
Bully– raise the price unnaturally high, manipulate quotes.
Ambush paper– a stock that has growth potential, but does not move with the market. Later, unexpectedly, its price shoots up.
Shut up about yourself– close a purchase at the peak or sell at the lowest point of prices. Usually after such a closure the price reverses.
Get into the over– open an overdraft.
Climb into the closet– open a position and stop looking at the chart so as not to get upset. The expression sat in the closet and was reached means that the player opened a position, did not look at the market, but was still closed by a stop order.
My eyes got blurry and I started playing– means that the trader is tired and no longer feels the market.
Get infected from the crowd- give in to panic. Even a large and experienced trader can get infected from the crowd. “After all, I was standing correctly in the morning, then I got infected from the crowd, turned over, and they took me to the very top.”
Recharge– buy papers with full coverage for a long period of time. For example, charging with Sber means buying shares of Sberbank.
stand still, stand still, stand up– establish a sideways, trendless market state. A price is said to have stalled when, after intense movement, it begins to fluctuate at some level.
To pack, to pack– buy in especially large quantities, counting on the beginning of an uptrend. “We’ve been packing the slugs all week.”
hang around– buy securities and hold them in a falling market; expensive to take and hold, despite the fact that the market has gone down.
Zafibonachit– plot Fibonacci levels on the chart. “Please give me a watch for LUKoil.”
Hook on– means a situation where the player’s request is partially fulfilled.
Hare– a player who makes a large number of transactions within a short period of time. Synonym for scalper.
Zebra– a sequence of several long white and black candles on a daily scale, usually occurring after a deep fall. The zebra often indicates the end of a downtrend.
AND
Play from purchase– tactics of a player’s behavior in the market, when he opens mainly long positions and refrains from opening short ones. “On an uptrend, play only from a buy position.”
Play from sale, andrip off the short– tactics of a player’s behavior in the market when he opens mainly short positions.
Play according to the market– buy when it rises or sell when it falls.
Play by glass– trade, mainly paying attention to orders in the order book. See glass.
Play against the market– sell when it rises or buy when it falls.
Industrial– Dow Jones index. “Sberbank was launched into space, and there the mouflons shopped at the highest levels. And then the market went down because industrials collapsed.”
Intraday– intraday trading, usually with the closing of all positions at the end of the trading session.
intraday– trade on short time intervals, focusing on 5, 15-minute or hourly intraday charts.
Intraday operator– a short-term speculator, focusing on charts on hourly, 15-minute and 5-minute scales.
Futures evaporation – execution of the futures, end of trading.
TO
Boar– a player who holds a potentially winning position for a long time and does not take profits on time. The price changes the direction of its movement, and as a result, K., at best, goes to zero. See also Go to zero.
Boar– maintain winning positions.
Cossack patrols– small positions opened on different securities in order to “test” the market.
Ride– play both short and high. “You don’t use Rostelecom”?
Quikar– a fan of the QUIK information and trading system.
Kidnyak, scammer- deception, fraud.
Throw- deceive, steal money. “He wanted to ditch me.”
Wobble(about price) – experience strong unpredictable fluctuations. Same as dangling.
Cola, cola(from the English “option call”) – option, call options.
End– a term denoting an increase in capital. Making two ends means doubling your capital. Make three ends - triple, and so on. The number of ends is the ratio of final and initial capital.
Countertrend– a new, oppositely directed trend, comparable in strength to the previous one.
Trap– a conditional order, which should be triggered upon a breakout of some important level, both in the direction of the breakout and, in some cases, against it.
Food, plankton, lemmings– a collective name for novice investors who, most often, suffer losses, that is, figuratively speaking, they feed experienced traders.
Corner– an artificially created community of traders; a coalition with the goal of manipulating the market for profit.
Short options, intermediate options– options with an expiration date every month, as opposed to quarterly contracts with delivery in March, June, September and December.
Shorty– a position opened against a strong trend in order to catch a short rollback. Its retention time is a maximum of 1 day (every other night).
Mow dividends with a crooked scythe– receive dividends from shares purchased at a high price. “Well, now you buy these VTB shares, then their rate will fall, and what will you do? "Mow the dividends with a crooked oblique"?
Mower– massive purchase.
Astronauts, climbers– players for promotion. “They launched a gas car into space, astronauts, damn it...”
Red dwarf– a black evening doji candle on a large volume that appears on a daily scale chart.
Crooked session– an unofficial exchange session on the MICEX before and after the official one.
Krupnyak– a collective name for large market operators.
Cover– close previously open positions.
Puppeteer- market maker.
Puppeteer, puppet- manipulate prices. “Nickel is growing like a ruler, probably dolls.”
Kukish– a reversal head and shoulders pattern.
Fist– a large, aggressive speculator, market maker. Same as the owner watching.
Merchant- a major buyer.
Bought and got– characterization of the consequences of buying in a downtrend. See also hit.
Buyafter– buy additionally when the price rises. For example, a trader bought 5 futures contracts at 25.45 rubles. The price began to rise, and he bought 5 more contracts at 25.65 rubles. They will say about him that he bought in pursuit.
Buy in the pit– buy at the local minimum price.
Buy overnight, buy overnight– buy securities closer to closing in order to sell the next morning.
Buy(sell) on the tip– open a position in the last minutes of the session, counting on the morning rush. Anyone who buys (sells) at the tip risks getting a gap against themselves.
Kitchen is a small brokerage firm that is not always honest with its clients.
Cache(from the English “cash”) – 1) cash; 2) free non-cash money on the investor’s trading account. Go to cash - sell all securities.
L
Light– Light Crude oil futures traded in New York.
Lemming– 1) a novice speculator who repeats mistakes over and over again; 2) an amateur, an emotional player who obediently reacts to the slightest market fluctuations.
Forest– bar volume histogram on charts.
Easy market- a market in which there are many shorts open, and therefore there are many potential buyers who can drive the price up.
Lemon- one million rubles.
Ruler– a set of shares, a portfolio of securities. Draw a line - buy a set of shares, form a portfolio. “I told him to buy only Gas, but in the morning he bought the whole line, and they took him away.”
pour, drain- sell. You can also quickly suffer losses and reduce your trading account.
Catching in another manvantara– try to close unprofitable positions after a large price jump up or down. See also Fly to another manvantara.
Catch a falling crowbar– buy on a strong downtrend in the hope of buying at the minimum.
Catching pips– means trying to make money in a slow market by buying and selling a tradable asset within a small range. The term is taken from the Forex market, where a pip is the minimum step in the price of currency quotes. Pips are usually caught by scalpers and hares. Sometimes, when catching pips, a player gets hit on a different scale when the “axe” comes into play, a highly capitalized trader who does not exchange change for change.
Lie on your side (about paper) – switch to a horizontal trend. The expression is also used to lie on support, that is, to be at the level of support.
False pusher– an aggressive speculator who places large buy orders to push the market up and sell there, or large sell orders to push the market down and buy there.
Long, long(from the English “long position”) - long positions. As one girl explained: “Bulls buy. Bulls have long tails. Therefore, when a player is buying, this is a long position. Bears are selling. Their tails are short. Therefore, when a player is on sale, it is a short position.”
Elk(from the English “loss”) – loss, loss. There are a lot of derivative expressions. For example, L. can be caught, fed, raised and even slept with them in the case when a losing position is not closed at night and is transferred to the next day.
Low (loi)(from the English “low”) – minimum (minimums) prices for a time period, incl. Japanese candlestick, daily range, market as a whole.
Bow, Lukich, Lukosha, Beam, Luchara, Lucho j – shares of NK LUKoil.
M
Mamba– MICEX exchange.
Margin call, margin call(from the English “marging call”) – 1) a requirement to add funds to the account; 2) a sign of resetting the trading account. “The kid is tough, he went through twelve margins.” From traders’ chat: “Question: people, who knows what this is – a margin call notification? The first day I’m trading on you too... Answer: margin call - this means you’re trading on the first day, it’s also the last.”
Margin– perform transactions with leverage. “The boy hasn’t even smelled gunpowder yet, but he’s starting to make a profit. So what's the result? Margin call in two weeks.”
marinate– buy some securities and hold them for a long time, regardless of the decrease in their market value. “How is Kolyan? “Yes, I marinated myself in onions.”
Masquerade, masquerade– 1) take hasty, thoughtless actions in the market, causing irony among experienced market participants; 2) ask stupid questions in chats, for example: “People, can you tell me how I can change my nickname?” or “What is the difference between GAZP and GSPBEX, are they the same paper or not?”
Bear- any seller. The word is taken from international jargon.
Small-timers– small speculators.
Dreaming offer– a sell order that a trader places at a clearly inflated price, which makes the chances of its execution illusory. At the same time, the trader dreams of the profit he will receive in this case and how he will spend it.
Mordashovki– Severstal shares
Drizzle bid(offer) – an order to buy (sell) submitted by an indecisive player. He puts it on and takes it off.
Wrinkle your brains– puzzle over where the market will go, especially in the morning, in the first half hour of trading.
Mos, Moska, Moser, Mosyara– shares of Mosenergo OJSC.
To dangle, to wobble(about price) – experience strong unpredictable fluctuations.
Mustang paper– a stock that is difficult to trade, that “cannot be tamed.”
Mouflons, lemmings- petty speculators-losers.
N
For all fuel oil– open with all your money, in large volumes. “And at that moment I decided to open up to all the fuel.”
Cook– make a profit from speculation, in particular from bulling. “We did a good job on the onions back then.”
Emery– NASDAQ.
Throw on– add a few points to the price. For example, you submitted a purchase order for 70.10 rubles. Your broker says: “There are few sellers in the market. Throw in a couple of points.” This means that you need to increase the application price to 70.12 rubles.
Covered in a glass– this expression characterizes the situation during the exchange session when the player’s order is executed. See glass. “The guy put out a warrant, and it was immediately covered in a glass.”
Cover– means “to buy a large number of securities or futures at ask prices” or “to sell a large number of securities or futures at ask prices.”
Cash– cash.
Lather– win.
Punch- plunge into a loss. A verb characterizing the trade of small and medium-sized speculators. “They got a full load” - means that large traders sold to small and medium-sized ones at maximum prices.
Slice– win by scalping. “Today I cut twenty thousand on scalps.”
Nerez– non-resident.
Neftyanka- a collective name for the shares of Russian oil companies - Rosneft, LUKoil, Surgutneftegaz, Tatneft, Gazpromneft and some others.
Bottom bar– the minimum possible price, the lower limit of price changes during the trading session.
Nickel– shares of Norilsk Nickel.
Nilliotchik– a fan of wave theory as interpreted by Glenn Neely.
Scissors– a situation when one security rises and the other falls.
ABOUT
Collapse, collapse– a sharp drop in price, stock index (indices).
Common– ordinary shares. For example: “Did you buy Sber Prefs or common stock”?
Overnight(from the English “overnight”) – leave a position for the next trading session. The term is used mainly in intraday trading, when the trader is counting on the morning movement or morning gap.
Sheep– an inexperienced, cowardly player who does not have an opinion about the market prospects. As a rule, O. loses. There is a well-known American proverb: “Bulls and bears make money, but sheep are sheared.”
Ogesezeshka– government savings loan bond (OGSB).
Oligarchic paper– a share of an issuer whose controlling stake belongs to one or more oligarchs. For example, typical oligarchic securities are shares of Norilsk Nickel or Severstal.
Descend– this word characterizes either the price movement or the player’s career. When they say, say, “NASDAQ has fallen,” this means that the NASDAQ index has fallen in price. When you hear: “He’s completely down,” it means that the trader has lost all his money, perhaps also got into debt and doesn’t know what to do next.
Fight off, fight off– win back previously lost money.
Drive– this verb is used to characterize unsuccessful trading on margin. If, say, a player bought, and then the price went down, then they will say about such a trader that he was “taken to such and such level.” For example: “Today at three o’clock in the afternoon I took a moser at four forty, and they immediately took me to four twenty.”
Ship– sell securities in large quantities. This term generally applies to closing long positions, but not to opening short ones.
Shipment– the process of selling a large batch of securities.
Give away- sell. A. securities are usually about to fall. To sell at market means to immediately sell at the current price.
Father- Gazprom shares.
Squeeze– raise (or lower) the price from a certain level. O. from the bar - means to raise (or lower) the price from the lower (or upper) limit of price changes for this particular trading session. Also - make a small profit.
Call back– call the client and either confirm the fact of the transaction, or inform about the current state of affairs on the market.
Rollback, roll back– a short-term decrease after a rise or a short-term increase after a fall in prices.
Open to variation- a very risky method of playing on futures, the essence of which is that the speculator uses the received variation margin as collateral for new positions.
Fly away- the same as rolling back. In most cases, the term O. is applied to pullbacks after a deep fall, during which the price reaches its minimum.
Work out(about paper) - react to the news, go to some new level. “Sber has already dealt with this news – it has grown by two rubles.”
Chop off the shoulders– reduce margin positions, prohibit margin speculators from using leverage. "A drunken broker cut off the shoulders of four clients."
Cutoff– cut-off price of an auction for the primary placement of bonds, usually government bonds.
Rebound– the same as rollback. A brutal rebound is a sharp rebound after a long fall. A dead cat bounce (from the English “bound of a dead cat”) is a small rebound after a powerful fall.
Unwind– place stop orders.
Shooting stops– a situation during a trading session when a market maker or other large player swings the price in order to activate stop orders of small players and make money, thus becoming a counterparty in a transaction that is unprofitable for them.
Shoot– go up sharply (about price). For example: “Did you see how Mosenergo shot today?”
Ofer, offer(from the English “to offer”) – the same as Ask (ask). Application for sale; application(s) for sale with the best price.
Ofezeshka– federal loan bond (OFZ).
P
Fall like a stake– experience a strong fall (about price). For example: “The market fell like a stake.”
Steam– lose; worry about losing. For example: “He unsuccessfully opened a short, and now he is soaring” or “now he is being soared.”
Locomotive– stock market, exchange, community of investors and speculators, stock exchange crowd.
Passengers– investors who have recently come to the market, have no experience, make unprofitable transactions.
Graze– closely monitor the actions and status of the client’s account. This verb characterizes the behavior of a brokerage firm's customer service specialist.
First echelon- the collective name of the ten to twenty most traded shares, the blue chips of the stock market.
roll over– change position to the opposite. For example, a player bought 10 futures contracts and entered into a buy position. To roll over, he needs to sell 20 contracts, then he will have 10 contracts left to sell. The same thing - repaint, change color, as in information and trading systems growth is displayed in green, and decline in red.
Twist– 1. Reborrow money. 2. If a player suffers a loss on one paper, then P. means opening on another in the opposite direction in order to compensate for the losses.
Overlap- take out a long-term loan and use it to pay off urgent debts. In other words, restructure the debt.
Shift– sell one asset and buy another. For example, sell stocks and buy bonds. So Warren Buffett, before the Asian crisis of 1997, switched from American stocks to silver and bonds. Also sell futures or options before expiration and buy them for the next expiration date (see Transplant)
Transfer from futures to futures, transfer– a method of playing in futures, the essence of which is that shortly before the expiration of the contract, the player closes his position in it and immediately opens a similar position in a futures with a more distant delivery date. Theoretically, such a position can be maintained indefinitely. Very often, hedgers switch from futures to futures.
Rearrange hai– update maximums (about paper). For example: “Luchara hai rearranges! It's time to take it!
Re-stop– change stop levels.
Stand still, sit out– hold a position during unfavorable price movements and wait for favorable market conditions. Many players fail at this and end up breaking down.
Transitional short– a short position that is carried over to the next day.
Pianist– an aggressive intraday trader who performs intensive transactions on several instruments simultaneously.
Pips(from the English “pips”) - the minimum amount of change in the contract price, mainly in the Forex currency market.
Pipsoviki, pipsolovy– see scalpers.
Pyramid– 1) a system in which the price of assets increases due to new buyers or due to funds received from the issue and sale of new securities. Any stock market is therefore P.
2) tactics of playing in the market, when the trader builds a P., buying after. In this case, with growth, the average purchase price increases.
Pyramid– accumulate the volume of open positions, build a pyramid.
Plank– limit on price changes during the trading session.
Shoulder- a merchant who uses borrowed funds trading on margin.
Leverage, leverage– the ratio of the transaction amount to the trader’s own money, financial leverage. “For some reason they don’t give me a shoulder now.”
By loys, by loys(from the English “low”) – make a transaction at minimum prices within a day. “I started to get nervous, and as a result I sold it at the lowest price.”
By market- at market price.
On highs, on highs(from the English “high”) – make a transaction at maximum prices within a day. “I started to get nervous, and as a result I took it to the extreme.”
Put the debt on yourself– admit, at least verbally, that you owe a certain amount. For example: “He put the debt on himself, and now he doesn’t know what to do.”
Uptrend, market– a trend, a market dominated by an upward trend.
Support purchase, pillow- a large purchase order placed to create the appearance of large demand at a price less than best price demand. With the help of support purchases, market makers and large traders try to raise the price, or keep the market from falling.
Raise the money, raise the money, rise- to earn money. For example: “Did you raise money today?” or “Did you raise money?”
Raise the market– increase market prices through purchases.
Undercut– sell at prices below demand. “And the guys started specifically cutting this paper.”
Get hooked– experience a slight decline in price either in a horizontal trend or after a sharp upward surge. Sometimes after the price has gone down, the market collapses.
Pose– open position. Take a pose - open a position.
Catch– buy or sell on time, make a successful operation.
Catch a moose, catch a margin call– receive a loss, close a stop order with a loss, receive a request to replenish your trading account. Sitting in elk means enduring a series of losses.
Catch a peak– sell at the local maximum price, successfully fit into the market dynamics.
Rinse in a glass– make frequent intraday trades without much result.
Pole– shares of Polyuszoloto. From the traders’ chat: “They’re eating blanks at Polyus,” that is, for PolyusZolot shares, buyers are gradually buying from a large seller who offered one lot.
Garbage– a small brokerage firm created for a specific wealthy client.
Downward trend, market– a trend, a market dominated by a downward trend.
Get there to fly in, to get hit- incur losses.
Sawing– to divide money, usually after a joint win.
Briefcaseman– portfolio investor.
Put the client on a pitchfork– for an analyst or consultant – giving incorrect advice to a client, as a result of which the client ends up losing.
To put on a pike- an expression characterizing the unsuccessful outcome of operations. “He was impaled”: this is what they will say about a trader who opened a short in a price hole and then closed with a loss on growth.
Lose position– sell ahead of time, get off the growing trend. See get off.
Ceiling– 1) historical maximum; 2) the maximum level to which, in the analyst’s opinion, the security can rise.
fix, fix- take profit. At the same time, quotes, as a rule, sag.
Going for longs, going for shorts– failure of stops.
Kiss, lick– touch the support or resistance level; reach some important mark and bounce off it.
Prefs(from the English “preferred”) – preferred shares.
Press down– slightly lower the price during an uptrend. The price is usually pressed down by small and medium-sized speculators who take profits.
fall down– decrease slightly, fall for a while after a period of growth, or decrease within the price corridor.
Squat– a slight reduction in price.
Stick– lock in your winnings by scalping. “A thousand stuck to the player” means that he earned a thousand rubles with a quick intraday transaction.
Breakdown, break through– price movement beyond a certain level. When, for example, they say that “The price has broken through the one hundred and fifty level,” this means that the price has either risen above or fallen below that level.
Puncher– a player who specializes in opening positions in the direction of a breakout. "Expanding triangles cause a lot of trouble for punchers."
Fail– in a short time the price will decrease significantly. Fall hard.
Checking tickets- the same as shaking out of papers. A downward movement initiated by market manipulators, during which inexperienced investors sell previously purchased securities at an unfavorable price.
To sag, to be in a sag, to be stuck in a sag– buy shares and get caught in the downward price movement.
Run– 1) sharp and strong price movement; 2) the range of intraday price fluctuations. “Did you see what a run on nickel was today? Eighty rubles!
Sell - take a short position, exit a long position.
P give birth after – sell additionally when the price falls. For example, a trader sold 5 futures contracts at 25.45 rubles. The price began to fall, and he sold 5 more contracts at 25.05 rubles. They will say about him that he sold after him.
Sell in the pit– sell at the local minimum price. Very often players who are broken are sold in the pit. It is believed that these are the players who form the bulk of supply in price holes. After they sell, the price bounces up.
Ride – a general term for the actions of the market as a whole. “Such and such a player was taken for a ride” means that he lost big.
Spacer candle– in a narrow sense, this is a Japanese candle with a short white body after a candle with a long black body; broadly – any candle with a short body and shadows that appears after a strong market movement.
Spin money– place temporarily free funds on financial markets for a while and then withdraw the money back.
Strait– a sharp downward price movement; massive sales.
saw through– 1) sit on a saw or double saw; 2) intense price fluctuations within a certain range, when it is unclear where will he go market.
Drawdown– 1) price drop, 2) loss resulting from the use of a mechanical trading system.
To be affixed– treat friends after winning. “Cut it - put it down”!
Pro-trading– a horizontal trend within a day, usually around a round price level or range.
Blizzard– shares of Purneftegaz.
Empty glass- this expression characterizes the situation during the exchange session, when there are few orders in the order book and trading is sluggish.
Put (put) (from the English “option put”) – option (options) “put”.
Vacuuming– buy shares in small quantities from individuals for the purpose of subsequent resale on the exchange market.
R
Work for money– trade intraday, close positions and exit for money at the end of the session.
Work from strong paper– carry out transactions with strong paper (see Strong paper and Weak paper)
Rainbow briefcase- a portfolio that produces a profit on one security ( green color), and for others - a loss (red).
Divorce, scammer– false market movement, false breakout, failure of stops.
Scammed– a large aggressive speculator, market maker, the same as a fist, an ax, a watcher, etc.
Overclocking– acceleration of the rate of price movement upward.
Giveaway– intensive sale.
Unwind– return the securities taken into trust management.
Warm up the market– through intensive transactions, create the appearance of lively trading. The market is usually warmed up by several friendly brokerage firms in order to sell assets at a higher price. Push the price up.
Hot market– liquid market.
spread out– 1. buy a series of securities at different prices on a downward trend; 2. it is unsuccessful to buy (sell) one type of security, and at the same time it is equally unsuccessful to open on some other security. For example, buy LUKoil and sell Sberbank. If LUKoil’s quotes fall and Sberbank’s rise, then the trader is “spread out between the bow and Sberbank.”
Rush– change a lot (about price).
Rare earth issuers– low-liquid second-tier shares; little-known papers.
Res- result. “With such a cut, you can rest for a week or two.”
Renick– IC “Renaissance Capital”.
Retail, retail clients– small investors, individuals.
Steering– a major manipulator, market maker.
Steer– 1) manipulate the market; 2) give competent forecasts. “Our gurvinnik really rules.”
Hand paper– a stock that lends itself well to technical analysis “according to the classics.” “LUKoil is handmade paper, but Sber-pref is not.”
WITH
Sardinate– make uncertain fluctuations, go up and down, but with the prospect of growth. “What’s wrong with the market today – is it fluctuating or consolidating? “The market is deteriorating.”
Sakhmor– shares of Sakhalinmorneftegaz.
escape– withdraw the application.
Sber, Sberkassa– shares of Sberbank.
Reset– massive sale of securities.
Take a walk(about price) - change a lot in both directions. “Have you seen how prices have gone down today?”
Hand over- sell. “You hand over everything, don’t keep anything!”
Do- the same as taking a ride. “... in general, they made a boy - now he doesn’t show off.”
Get on the train– open a position. “Would you like to take the train today? He's leaving tomorrow. We have to wait until tomorrow and see how the States closes.”
Sit on the double saw– go against the market twice, do not fit into the market rhythm. Those. buy high and close at the bottom, then sell in the hole and buy again at a higher level, or vice versa. It is easiest to take a double saw when the price is moving in a price range. There is no expression “getting on a triple saw” for obvious reasons.
Sit on the saw- go against the market, do not fit into the market rhythm. Those. buy high and close at the bottom or vice versa. This term has nothing to do with triggering stops.
Signal candle– a white or black candle on a large volume (sometimes a “shooting star” or “hammer” type candle), from which a long and powerful trend on a daily scale begins.
Sit on the fence– close all positions and watch the quotes.
Sit on futures– trade futures for a long time. “I was on futures for four years.”
Sit on the clock– trade based on the hourly chart readings.
Strong paper– a paper that grows or falls strongly during the day.
Scalp(from American exchange jargon “scalp”) - a transaction involving the purchase and sale of an exchange asset during one trading session.
Scalper(from American exchange jargon “scalper”) - a speculator who makes many buy and sell transactions during one trading session, playing on minor price fluctuations. Sometimes he happens to catch relatively large fluctuations.
Scalp– during the trading session, make purchase transactions with subsequent sale and vice versa.
Weak paper– a paper that is weakly growing or falling during the day.
Get off- sell some paper. S. can be, say, from shares of Surgutneftegaz..
Blind stop– a stop order that a trader places during his absence.
Merge– sell before the fall begins, also suffer losses, reduce your trading account.
Fold up– fall in price several times (about paper). For example: “Gazprom has doubled,” that is, its price has fallen, say, from 300 rubles. up to 150 rub.
Break down– cannot withstand a long price movement in an undesirable direction and close the position due to lack of funds, or if nerves give out.
Change skate– this expression is used in relation to any stock and means a change in the dominant trend. For example, the phrase “the onion has changed” means that the medium-term trend for this security has changed.
Looking– a market maker for some security.
Scalp– win on a short-term intraday operation.
Scalp yourself– lose on a short-term intraday operation.
Collect the glass– submit a market order with a large volume and satisfy a large number of counter orders with a significant price shift. “I told him: work more carefully with such volumes! And he hit it and collected the whole glass.”
Collect piles- the same as tearing off the feet.
Resistance– line of resistance.
Rip off the feet– force small and medium-sized traders to close in footsteps, and then reverse the price. Stops are usually broken by large traders and market makers.
Break loose- lose control and lose. Quite experienced players also break down.
Jump off some paper- sell it. For example: “It’s good that I left Tatneft on time.”
Jump off the percentage– agree that the creditor will forgive the interest and begin paying the principal amount of the debt. “I was lucky that I managed to come to an agreement... I jumped off the interest and now I will pay off the debt myself.”
push– sell a batch of securities before the fall begins, sell unnecessary securities.
Spotovik– a person trading shares on the MICEX spot market. “The spotters’ eyes widened in surprise.”
Hide behind paper– buy some reliable paper during periods of market instability. They usually hide behind blue chips.
Sprader– spread trader. Makes a profit from the difference in price fluctuations for similar species contracts, for example, futures with different delivery dates.
Work at a disadvantage- the same as going into minus.
Cut scalp– make a profit from a short-term transaction of buying and selling securities.
Cup– application window.
Glass of soda, carbonated glass– order window for Gazprom shares.
Glasser– a trader who focuses his trading on the order window (glass). Some drinkers don't even look at the chart.
Stems– long white candles that appear after a long market decline.
Wash– a large number of transactions with zero effect.
Stop, stopar– stop order. Tight stop – a stop located far from the market entry point. A hard, sensitive stop is a stop located close to the entry point. “Who works with a hard stop in such a market?”
Stop, stop- close in footsteps.
Riser– a calm, sluggish market in which transactions occur within a small price range.
Stand in over– open an overdraft and remain in it for some time.
Strategist– strategic investor.
Shooting, nails– sharp price movements within the day.
Shake off the fleas- lower the price before jumping up to make it cheaper for the market maker to increase the position.
Market narrowing– a situation where during a strong price market only blue chips rise or fall. Trading participants are so busy with these securities that they forget about the second echelon.
Sultan Brunei- the behavior of a young player who won big and began to waste money.
Surgut, sealing wax– shares of Surgutneftegaz.
Go to Everest(about price) – grow a lot, reach maximums.
Counter– window for assessing the value of a securities portfolio in the trading platform. “My meter shows plus.”
T
Tarry- buy. For example: “Yesterday I bought everything to the fullest.”
Tatars- Tatneft shares. “How the Tatars rushed!”
TV, body– shares of Rostelecom. “Today the body is being distributed” – today there is an intensive sale of these shares.
Telefonchik– a brokerage company that does not fulfill client orders on the trading platform, clearing them internally.
Vest- a period in the life of a speculator when profits alternate with losses.
Tekhanal- technical analysis.
Techie– technical analyst.
Technique- technical analysis. “It was clear from the technology...”
Tiger– an experienced speculator who enters the market rarely, but accurately.
Push- create the illusion of growth through transactions between friendly brokerage firms or corner participants, or by purchasing a large batch of securities to force the price to move up. Sometimes the market is pushed down. In the West this is called "raid".
Ton – one thousand units of an exchange asset (shares, lots, contracts). For example: “He discovered two tons of Lukoil.”
drown– aggressively sell any security.
Axe- market maker. “The main thing in our business is not to get hit by an ax.”
Trading past candles– a style of performing operations in which a trader buys or sells without waiting for the end of the candle formation.
Trading past money– trading at a loss.
Sharpener– market movement in a price corridor, sluggish market in a horizontal trend. “And they started taking money from him at this grindstone.”
Trade(from the English “to trade”) – trading operation, transaction.
Troyak– IC “Troika-Dialogue”.
Nightstand– cash reserve money that is kept at home “in the nightstand.” “Have not one, but two nightstands, just in case.”
Tupnyak– a trader’s condition that occurs after long-term continuous trading. Characterized by general psychophysiological fatigue and mental weakness. The best cure for T. is rest.
Turboflight- a sharp upward movement on some paper.
Turbo chip– a sharply growing security (for example, Interural shares in the first week of December 2005).
Traction– 1) the motive of the game to increase or decrease, for example, “Oil is overseas, there is no traction in the market, so we’ve been hanging out in the morning, plus or minus half a percent”; 2) strong price movement, for example, “The craving has begun - open longs.”
Tyr, Tyrov- thousand rubles.
Heavy papers, heavy chips– 1) shares, the market value of one lot of which is relatively high; 2) inert, not very mobile papers.
Heavy candles– candles of a larger scale than the one the trader has on the chart. For example, hourly intraday versus five-minute ones. See also Fleas.
To pull– 1) Have a total value. For example, “Your portfolio is worth half a lemon” means that the value of your portfolio is about 500 thousand rubles. 2) Hold the position for a long time.
Guadalovo or Gadalovo– open at random, on a whim, in an attempt to guess where the market will go.
Get burned- lose.
Strike from another scale– the beginning of a strong trend. This happens when a major player begins to actively sell or buy. When a trader scalps, he focuses on a relatively small scale, on the intraday chart. A major player analyzes price movements over several months, or even years.
Hit incup– buy or sell at offer prices (see Depth of Market). For example: - “Look, they hit the glass with a large volume”!
Go negative- the same as going into minus.
Leave the market– complete the operation, close the position. Sometimes they say this about a player who has decided not to trade anymore.
Roll, trample- lower the price. The market can be controlled by both large traders, or “corner” participants, and small speculators who have succumbed to panic.
Fly away– this verb characterizes price movement. When she flew away, it meant that she had changed a lot in a short time. Most often used to characterize upward movement.
Fly to another manvantara– a sharp jerk in the price down or up with a complete change of situation. In Hindu philosophy, Manvantara is a period of active, manifested state of the Universe.
Fly away to sunny summer, fly to the moon- make a significant leap upward.
Ural– shares of Interural.
Averaging(from the English word “cost averaging” - cost averaging) - a tactic of playing in the market when a speculator buys additional contracts when the price falls, thus reducing the average purchase price. Similarly, when prices rise, he can open new short positions, increasing the average selling price. A very risky trading algorithm, since the price can go so far that the trader will be forced to close with a huge loss.
Duck– unverified, often false information. Swallowing a duck means believing false information.
Leaving the market– completion of the operation, closing the position.
Leave for the night, leave for the night, leave for the night, leave overnight– leave the margin position for the next trading day. “I went out at night in the hope of catching a pick, but in the morning they tore it off so much that it didn’t seem like much.”
F
Figure– one hundred basis points. For example, on the Gazprom stock market, where one basis point is equal to 0.1 kopecks, F. is 10 kopecks.
Physicist– an individual, a client of a brokerage firm.
Chip- security, share.
Flat(from the English “flat”) - a horizontal price corridor, unchanged.
Fondovik– stock market worker, participant in trading on the stock market.
Forum members– participants in trader forums.
Futures, futures– futures. These words are used exclusively in the plural. For example, if a player has been trading futures for a long time, then they may say about him: “He was sitting on futures.”
Futureist- futures trader. “Futureists are crazy.”
X
Hai (hai)(from the English “high”) – the maximum (maximums) of the price of a time period, including a Japanese candlestick, daily range, and the market as a whole.
Move- movement of the price of a security from one level to another. “There was a run to all-time highs.”
Master– a large, aggressive speculator, market maker.
C
The price is gone– a situation on the market when the price changes at the time the order is executed. For example, a client calls a broker and says: “Buy me ten lots at two hundred and sixty each.” The broker says: “The price has gone down. Supply is now at two hundred and sixty-two.”
H
Watches, watches– hourly scale graphs. “The Tatars have their heads on the clock” – there is a “head and shoulders” figure for Tatneft shares on an hourly scale.
Chatlane, chatists– participants in traders’ chats.
Suitcase– investment portfolio.
Turtles– see scalpers.
Draft– unresolved personal, “home” problems of the merchant that affect his behavior and financial condition, but about which his colleagues should not know anything.
Sh
Paper pitch– 1. average change in the price of a security between days (in rubles and as a percentage); 2. the average distance between the minimums and maximums of intraday corridors; 3. average spread at the end of the trading session. In the latter case, the smaller the pitch of the paper, the more liquid the paper is.
Thorn– a sharp jump in price followed by a rollback within a day (less often between days). “It’s better to close on the spikes than on the feet.”
Shorts, shorts(from the English “short positions”) - short positions, sales. Antonym of the word Long, longs (purchases).
Shorten a flying pig– successfully sell at the intraday high during an uptrend and earn a few points on the pullback. The etymology of this expression goes back to the English “pic a pig,” which means “to pry a pig with a spear.” At some knightly tournaments, before the start of the fights, a pig was thrown high and the knights tried to catch it on a pike.
Shorten, shorten– open short positions, sell.
Shortbus– collective name for holders of short positions. Checking tickets on a short bus - a sharp upward price movement, at which the most nervous and impatient passengers of the short bus begin to follow in their footsteps.
Shortwing is a mythical bird that flies to the market when the short holders begin to close. From traders’ chat: “Sealing wax on a short wing flew almost to the hourly average and fell off, there were no strategic merchants yet.”
E
Elliot– a fan of the Elliott wave theory.
Enjoit b – to win, to rejoice from winning (from the English “to enjoy” – to rejoice).
YU
Yurik – entity, client of a brokerage firm.
I
Apple- a reversal pattern within the day, consisting of two tubercles - in appearance it resembles the upper part of an apple.
Pit– 1) local minimum prices. 2) part of the trading floor of an exchange abroad, where brokers and traders enter into transactions.
Japanese candle– a graphical way of displaying the state of the price over a time period. Just like a bar, it includes opening, top, bottom, closing (English: open, high, low, close), but it is more visual, since the distance from opening to closing is reflected by thickening, the so-called. body, the remaining two segments are displayed as thin lines, the so-called. tails.
Yard- one billion.
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the dictionary is compiled based on own experience, as well as based on materials from the Internet
What is Consolidation
In technical analysis, it is the movement of asset prices within a clearly defined pattern or within a sales level. Consolidation in a broad sense is calculated over an indefinite period, which ends when the price of assets violates the limits of restrictive barriers. Consolidation times can be displayed as a chart that includes any period of time (eg hours, days, etc.), and these stages can last for a few minutes, days, months or even years. Long stages of consolidation are called basic.
What is ADR (American Depository Receipt)
Slippage
What is Slippage
The difference between the expected trading price and the actual trading price. Sliding often occurs during periods of increased volatility, when large orders are being filled in the market and when there is not enough interest in the desired price level to support expected trading prices.
The exchange is the place where transactions for the purchase and sale of goods, currencies, etc. are concluded.
Previously, auctions were held in a certain room, where sellers and buyers met.
Today, thanks to the spread of the Internet and information networks, it has become possible to participate in trading without being in the exchange building.
Exchange trading is the process of concluding transactions on an exchange according to established rules, where the objects are commodities, securities, currency pairs and other financial and derivative financial instruments.
Depending on the item of trade There are 3 types of exchanges:
- Commodity.
- Stock.
- Currency.
In the first case we are talking about transactions purchase and sale of goods. Exchange trading can be carried out on the basis of a qualitative description of the product, even in its absence.
Such products are homogeneous and standardized. These include: grain crops, meat and livestock, various metals, industrial raw materials, etc. Main functions of a commodity exchange:
- organization of trade exchange on mutually beneficial terms;
- identifying real demand and supply for goods;
- ensuring the execution of transactions;
- providing information to interested parties.
On the stock exchange are carried out transactions with securities. It makes it possible to obtain additional funds for the development of production, the implementation of government programs, etc. Here are the main functions of the stock exchange:
- organization of tenders;
- preparation and implementation of contracts;
- quotation of exchange prices;
- guarantee of execution of transactions;
- Information Support.
On the currency exchange it is done buying and selling currencies according to their quotes. Its main function is to set the market rate of national and foreign currencies.
By transaction type The following types of exchanges are distinguished:
- real goods— after the transaction, mandatory delivery is carried out;
- futures, where futures is an obligation to purchase a certain product in the future in a given quantity at a set price. The buyer can resell the contract or fulfill it;
- optional, where an option is the right to purchase a product in the future at a specified price (the buyer can refuse to fulfill the contract and in this case he will only lose the value of the option);
- mixed, where transactions of different types are concluded.
Functions
There are four functions of the exchange:
- organization of tenders;
- contract development;
- publication of prices (quotations);
- guaranteeing the execution of transactions.
Organizing trading (the first function) is impossible without performing the function of informing trading participants.
She also undertakes to conflict resolution (arbitration) that may arise in the process of making and executing transactions.
Mission
Exchange trading, as the basis of exchange activities, facilitates the process of buying and selling, and also protects the interests of sellers and buyers from losses that may arise in the event of price fluctuations or fraudulent activities.
Today the trading process has become much easier because transactions can be concluded using the Internet.
But in order to be successful and make a profit, it is necessary thorough study of all mechanisms, terms, concepts. A classic textbook is the work of Alexander Elder “Fundamentals of Exchange Trading”. We invite you to watch the interview with the author in the video.
"Bulls" and "bears"– participants in exchange trading who bet on the growth or fall of the market. Bulls usually take a long position in the market or otherwise they bought an asset and hope for growth market prices. Bears usually take a short position, or otherwise they "short the market." The bears have sold the asset and are betting on price declines.
"Blue Chips"(from the English “blue-chips” - the most expensive chips when playing poker) this is the name of the shares of the most famous, highly profitable, most liquid and stable companies. As a rule, such shares pay stable dividends, and their market value is steadily growing.
IPO(from the English Initial Public Offering) - an initial public offering of company shares for sale to a wide range of people. This implies that the company is putting its shares on the stock exchange for the first time, offering them to an unlimited number of people.
Assets- is a form of wealth expressed in financial (all types of payment and financial obligations) or material form (movable and immovable property, land, precious metals, durable goods).
Promotion– an issue-grade security issued by a joint-stock company (JSC) without a specified circulation period and securing the rights of its owner (shareholder) to receive part of the profit of the joint-stock company in the form of dividends, to participate in the management of the joint-stock company and to part of the property remaining after its liquidation.
Exchange- this is the place where securities are traded and the exchange acts solely as the organizer of trade. The main task of the exchange is to make this place as convenient as possible (in terms of the process of making purchase and sale transactions) for the maximum number of buyers and sellers.
In accordance with the federal law “On the Securities Market,” the activity of organizing trade in the securities market is the provision of services that directly facilitate the conclusion of civil transactions with securities between participants in the securities market.
Broker– a professional participant in the securities market who carries out civil transactions with securities as an attorney or commission agent, acting on the basis of an agency or commission agreement, as well as a power of attorney to carry out such transactions in the absence of indications of the powers of the attorney or commission agent in the agreement.
Bill of exchange- a debt security that is issued by the borrower to the investor, and reflects, if it is drawn up in a strictly defined form established by law, the relations of the parties regulated by the law on bills of exchange and promissory notes.
A bill of exchange is an abstract, unconditional obligation of the drawer (promissory note), or an order of the drawer to a third party specified in the bill of exchange (bill of exchange) to pay upon the arrival (at the time of occurrence) of the period stipulated by the bill of exchange a certain amount of money.
Depository activities– this is the activity of providing services related to the storage of securities certificates and/or the recording and transfer of ownership rights to securities.
Dealer– a professional participant in the securities market who carries out purchase and sale transactions of securities on his own behalf and at his own expense by publicly announcing the purchase and/or sale prices of certain securities with the obligation to purchase and/or sell these securities according to the announced person carrying out such activities, prices. A dealer can only be a legal entity that is a commercial organization.
Long position or long(from the English LONG) – the position of a buyer who purchased an asset (share, futures, commodity) on the market. This position is characterized by the fact that when prices rise, the buyer receives a profit, and when prices fall, he incurs a loss.
Trust management– this is a situation in which the owner of the property (the Principal) transfers the right to dispose of his property to another person (the Manager). It is important to note three points:
1. Only the right to dispose of property is transferred. The owner of the property remains the owner.
2. The manager is obliged to manage the property in the interests of the owner.
3.The rights and obligations of the parties are secured by agreement.
Trustee– a professional participant in the securities market, a legal entity or an individual entrepreneur who carries out on his own behalf for a fee for a certain period of trust management of assets transferred to his possession and belonging to another person in the interests of these persons or third parties specified by this person:
- securities;
- funds intended for investment in securities;
- cash and securities received in the process of securities management.
Security yield- a quantitative characteristic of a security that determines its value for an investor.
Profitability depends on the amount of risk that the investor is willing to take on. The higher the yield of a security, the higher the risk.
Profitability in general is calculated by the ratio of the income received by the investor during the period of ownership of the security to the costs of its acquisition. Yield is usually determined as a percentage.
Investments is the investment of free funds in various forms of financial and material wealth, otherwise called assets.
Funds can be invested
- into tangible assets
- into financial assets
Investment savings- This is a special type of savings that is not intended for consumer needs. the main objective such savings are invested in income-generating assets.
The amount of investment savings depends on
- general level life of society
- level of income of individual citizens.
In terms of terms, investment savings can be both short-term and long-term.
Investment share– this is a registered security certifying its owner’s share in the ownership of the property that makes up a mutual investment fund, the right to demand from the management company proper trust management of the mutual investment fund, the right to receive monetary compensation upon termination of the trust management agreement of the mutual investment fund with all owners of the investment funds shares of this mutual investment fund (termination of the mutual investment fund).
Investment portfolio is a set of real or financial assets. In a narrow sense, this is a set of securities and derivatives different types, of varying duration and varying degrees of liquidity, owned by one investor and managed as a single entity.
MICEX Index is a composite indicator of a portfolio consisting of the 30 most liquid shares of the Russian stock market, traded on the MICEX stock exchange. In addition to the main MICEX index, there are also several other industry indices (oil, electric power), as well as MICEX indices of medium and small capitalization companies (the so-called SMALL CAPS and MIDDLE CAPS indices).
RTS Index is a composite portfolio indicator consisting of the 50 most liquid shares of the Russian stock market, traded on the RTS stock exchange. The RTS Index is the most recognized indicator of changes in the dynamics of the Russian stock market. On the basis of the RTS index, futures contracts for the RTS index are traded, which are the most liquid instruments of the Russian financial market with a daily turnover of 5 to 10 billion dollars.
Internet trading is a way to access trading on a currency, stock or commodity exchange using the Internet as a means of communication. The client actually gets direct access to trading and performs the functions of a broker on his own account, which allows him to quickly perform such standard actions as placing orders and stop orders, monitoring his own funds and open positions.
Clearing(English clearing - clearing) - implementation of non-cash payments between various entities (countries, companies, individuals) for goods supplied, sold to each other, securities and services provided, carried out through mutual offset, based on the terms of the balance of payments.
Clearing activities in the securities market- activities to determine mutual obligations (collection, reconciliation, adjustment of information on transactions with securities and preparation of accounting documents for them) and their offset for the supply of securities and settlements on them.
Short position or short(from the English SHORT) - the position of a seller who currently does not have an asset (share, futures, commodity), but hopes to buy it back cheaper. This position is characterized by the fact that when prices rise, the SHORTIST incurs losses, but earns when prices fall.
Quotation- the price of an asset that the seller or buyer announces and at which they are willing to buy or sell. Usually this refers to a relatively rapidly changing price, for example, an exchange price.
Listing(from the English list - list) - a set of procedures for including securities in the exchange list (list of securities admitted to exchange trading), monitoring the compliance of securities with the conditions and requirements established by the exchange.
Securities are recognized as having undergone the listing procedure after examination of documents and inclusion of the security in the quotation list of any level.
Margin(in professional slang, margin) is a collateral that provides the opportunity to obtain a temporary loan of money or goods that are used to carry out speculative stock exchange transactions during margin trading. A marginal loan differs from a simple loan in that the amount of money received (or the cost of the goods received) usually exceeds the amount of collateral (margin). Typically, margin (margin requirement) is expressed as a percentage (%), as the ratio of the collateral amount to the transaction amount (for example, 25%) or as a ratio of shares (for example, 1:4). In spread betting, the margin can be 3-5%, which allows you to increase both winnings and losses.
Margin trading involves carrying out transactions with assets received from a broker on credit. This can be either cash or tradable goods: for example, shares. Margin lending has its own specifics. The amount of leverage is determined in advance when signing an agreement between the broker and his client.
Thus, on the Russian stock market, the permitted “leverage” varies from 1 to 1 to 1 to 3. Leverage 1 to 1 means that a client can borrow another 1 ruble from a broker with the 1 ruble he has and buy securities for 2 rubles or, on the security of 1 ruble he has, the client can borrow securities in the amount of 1 ruble for the purpose of selling them and further repurchase at a lower price. A purchase with leverage is usually called an unsecured purchase, and the sale of borrowed shares secured by available funds is called a uncovered sale. Uncovered selling in stock exchange slang is also often called short selling or “short” (from the English short).
Bond- an issue-grade security that secures the right of its holder to receive from the issuer of a bond within the period specified by it its nominal value and the percentage of this value fixed in it or other property equivalent. A bond may provide for other property rights of its holder, if this does not contradict the law. Russian Federation.
Ordinary share gives its owner the right to vote at a meeting of shareholders. The amount of dividends received on ordinary shares directly depends on the performance of the joint-stock company and is not guaranteed by anything else. Therefore, the amount of dividends on ordinary shares is unknown in advance. It is determined by the management body of the joint-stock company based on the results of the company’s work.
Call option (CALL)- (put option) - a contract that gives the buyer the right to buy from the person who sold the option a security at an agreed price at an agreed time.
Put option (PUT)- (put option) - a contract that gives its buyer the right to sell a security to the seller of the option at an agreed price at an agreed time.
Option contract is a contract between two investors in which the seller of the option gives the buyer of the option the right to buy (or sell) an asset at an agreed time at an agreed upon fixed price.
An options contract is an unequal transaction. In it, one party - the buyer - pays a premium and does not bear any further obligations. By paying the premium, the buyer (option holder) has the right to demand the asset at the agreed price. The second party - the seller (option subscriber), having received the premium, is obliged to deliver the asset at the request of the option holder. In this case, the seller of the option no longer has the right to refuse his obligations.
UIF (Unit Investment Fund) is a property complex without the formation of a legal entity, based on trust management of the fund’s property by a specialized management company in order to increase the value of the fund’s property. A mutual fund is formed from the money of investors (shareholders), each of whom owns a certain number of shares.
Preference share as a rule, does not give its owner the right to vote at the general meeting of shareholders (except for issues relating to the rights of owners of preferred shares). The “privilege” of such shares is that they pay guaranteed dividends of either a fixed amount, regardless of the results of the joint-stock company’s activities, or a fixed share of net profit. The rights to receive dividends on preferred shares are established in the Charter of the joint stock company. By law, dividend payments on preferred shares are made after payments on bonds and before payments on common shares.
Derivative financial instrument (derivative)(English derivative) - an agreement (contract) providing for the exercise of rights and/or fulfillment of obligations associated with a change in the price of the underlying asset underlying this financial instrument, and leading to a positive or negative financial result for each side. The underlying asset under this agreement may be: securities; goods; currency; interest rates; stock indices, etc.
Settlement (clearing) house- organization - a professional participant in the securities market, which assumes the functions of organizer of execution of exchange transactions.
Based on the information received about transactions concluded within a certain time, the requirements and obligations of each participant in exchange trading are determined and offsets are made between them. If the claims that a particular participant has exceed his obligations, this means that he is owed a certain amount of money. If the demands of a particular participant are less than his obligations, then this implies payment on his part to those participants to whom he owes.
Registrar (register holder)– legal entity – a professional participant in the securities market, licensed and engaged in maintaining a register of securities holders.
A legal entity engaged in maintaining a register of securities owners does not have the right to carry out transactions with securities of an issuer registered in the system of maintaining a register of securities owners.
Register of securities owners- this is a set of data stored in various documents on paper and electronic media, reflecting information about the owners of securities, nominee holders, encumbrances of securities, types of shares and their quantity, as well as other information.
The register of an individual issuer is single and indivisible and, based on this, the Register cannot be fragmented and transferred to several Registrars.
Risk is the likelihood that the return on an investment will differ from what was expected. Risk includes not only unfavorable (returns below expected) but also favorable (returns higher than expected) outcomes. There are diversifiable and non-diversifiable risks. The first most often concerns investments and risks associated with individual specific companies, while the second concerns risks associated with the market as a whole.
Saving– additional free income remaining at the disposal of an individual after paying all normal expenses (food, clothing, transport, housing, etc.).
Scalper– a stock trader who uses scalping operations in his work. Typically, a scalper holds a position from several seconds to several minutes.
Scalping– a type of speculative operations based on the possibility of making a profit due to minor price changes in short periods of time.
Derivatives market- (derivatives market, derivatives market) is an exchange or over-the-counter market where derivatives contracts (forwards, futures, options, swaps) are concluded.
Technical analysis- forecasting price changes in the future based on analysis of price changes in the past. It is based on the analysis of time series of prices. In addition to price series, technical analysis also uses information on trading volumes and other statistical data.
Technical analysis is used by investors mainly to determine market entry and exit points.
Technical indicator– this is the result of mathematical calculations based on price and/or volume indicators (Volume). The obtained values are used to predict price changes.
Trading session– the period of time during which exchange trading of securities or other exchange assets (commodities, derivatives) is carried out.
Transaction- group consistent actions(preliminary establishment of order parameters, placing an order, etc.), with the goal of concluding an exchange transaction. Very often, a transaction is synonymous with an exchange transaction.
Trader- in international practice - an individual trading on the stock exchange on his own behalf at his own expense
In Russian practice, an employee of an investment company-broker who executes clients’ orders to buy and sell securities and derivatives at exchange trading.
Trend– directed change in market prices. There is an upward trend (when prices rise), a downward trend (when prices fall) and a sideways or horizontal trend (when prices fluctuate within a small range).
Management Company- an organization created in accordance with the legislation of the Russian Federation and licensed by the Federal Service for Financial Markets of Russia (FSFM) to carry out activities related to the management of mutual investment funds and non-state pension funds in accordance with the federal law “On Investment Funds” (No. 156-FZ dated 29.11.2001), as well as funds from private investors within the framework of individual trust management.
Depending on the sample of indicators, a stock index may reflect the behavior of a certain group of securities (or other assets) or the market (market sector) as a whole.
Often, stock indices are the basis of derivative financial instruments of the same name (most often futures contracts), which are used for investment and speculative purposes.
Forward contract is a binding contract concluded between subjects of the over-the-counter market, in which one counterparty undertakes to deliver to another counterparty an underlying asset (money, goods, securities, interest rates, indices) on the day specified in the contract in the future, while simultaneously receiving payment for the asset at the price fixed in the contract.
A variant of a forward contract may be an agreement to pay the difference between the price fixed in the contract and the spot market price for the underlying asset on the date of execution of the contract. Contracts are called, respectively, delivery contracts if the actual delivery of an asset is made, or settlement contracts if only payment of the difference between the contract price and the current price is provided.
Fundamental Analysis(eng. Fundamental analysis) is a term to denote a number of methods for predicting the market (exchange) value of a company, based on an analysis of the financial and operational indicators of its activities.
Fundamental analysis is used by investors to assess the value of a company (or its shares), which reflects the state of affairs in the company and the profitability of its activities.
Futures contract is an agreement between two investors, concluded through the mediation of a professional stock market participant (trading organizer), under which one contracting party undertakes to buy from the other contracting party a standard (determined by a professional stock market participant) number of securities in a specific (determined by a professional stock market participant) time at an agreed price, which is paid on the day of delivery. The futures contract is completely standardized, is concluded only on the exchange and has an exchange mechanism for guaranteeing its execution by each of the parties to the contract.
Share price When we talk about the price of a stock, we usually mean the market price, but there are three other types of stock price, which in particular depend on the type of securities market.
The price of a share depends on which market, primary or secondary, it is traded on.
There are usually four share prices:
- nominal share price. Usually indicated on the share itself, it has practically no significance for the further movement of the share on the securities market and is purely informative, indicating the amount of equity capital;
- The issue price of a share is the price at which the share is sold on the primary market (that is, immediately after issue). Typically, the issue price differs from the nominal price, since the issuer places shares, as a rule, through an intermediary dealer company - an underwriter (most often an investment bank). The underwriter buys from the issuer at an agreed price a batch of shares issued for sale, which he then sells among intermediaries;
- The market (exchange) price of a share is the price at which the share is quoted (valued) on the secondary securities market. It is the market price that determines the real value of a given share. When people talk about the price of shares, they usually mean their market value;
- the book price of a share is determined on the basis of the financial reporting documents of the joint-stock company. Most often, this occurs during audits to add company shares to the list of shares listed on a particular exchange.
Security- this is an appropriately executed document that has a number of mandatory details and expresses the property or debt relationship between the parties, confirming the right (“title”) to any property or sum of money.
Issue-grade security– any security, including non-documentary securities, which is simultaneously characterized by the following characteristics:
- consolidates a set of property and non-property rights that are subject to certification...
- posted in releases
- has equal volume and terms of exercise of rights within one issue, regardless of the time of acquisition of the security.
The main issue-grade securities are shares and bonds issued by joint-stock companies.
Issue of securities- this is the sequence of actions of the issuer established by law for the placement of issue-grade securities. Each specific issue of securities is identified by a state registration number. This is a set of securities of one issuer of a given type and class, providing the same amount of rights to the owners and having the same conditions of primary placement.
Issuer- this is a legal entity or executive authorities or local government bodies, which (s) bears, on its own behalf, obligations to the owners of securities to exercise the rights secured by these securities.