This is a ratio calculated by dividing the annual return by the annualized monthly standard deviation.
Forex is usually traded with a high degree of leverage, which means you are able to provide just a small percentage of the actual amount you are investing while sustaining profit/losses as if you had invested the whole nominal amount yourself. This can work for you as well as against you.
Глоссарий — Renesource Capital
The process by which a clearinghouse maintains records of all trades and settles margin flow on a daily mark-to-market basis for its clearing member.
Карта сайта | Equity
An individual or organization which solicits or accepts orders to buy or sell futures contracts or commodity options and accepts money or other assets from customers in connection with such orders. An FCM must be registered with the CFTC.
When you open a trade, you can set a stop loss order &ndash this is a point where the trade will automatically close if the market moves to that position.
The trading of securities not listed on a US exchange but traded on that exchange at the request of a member of that exchange, and not at the request of the issuing corporation.
An option whose strike/exercise price is equal to or near the current price of the underlying instrument.
A specific type of index arbitrage that involves the simultaneous purchase of stock index futures against the sale of a large number of stocks that comprise (or closely resemble) the index.
Maintenance margin is usually a smaller number than initial margin and really doesn t come into play unless the account balance is shrinking due to losses. If the value of the account balance falls below maintenance level then you re required to get the account back into compliance (a margin call). You can do this by either sending more money (raising the balance back up to initial margin) or lightening up your position (lowering the initial margin back down to the balance).
A chart indicator used in technical analysis to determine potential trend reversals, indicating an overbought or oversold market condition.