Balance of trade

Similar financial terms

Zero-balance account
A zero-balance account (ZBA) is a checking account in which zero balance is maintained by transfers of funds from a master account in an amount only large enough to cover the checks presented.

Target cash balance
Optimal amount of cash for a firm to hold, considering the trade-off between the opportunity costs of holding too much cash and the trading costs of holding too little cash.

Remaining principal balance
The amount of principal dollars remaining to be paid under the mortgage as of a given point in time.

Receivables balance fractions
The percentage of a month's sales that remain uncollected (and part of accounts receivable) at the end of succeeding months.

Off-balance-sheet financing
Financing that is not shown as a liability in a company's balance sheet.

Net cash balance
Beginning cash balance plus cash receipts minus cash disbursements.

Balance of payments
A statistical compilation formulated by a sovereign nation of all economic transactions between residents of that nation and residents of all other nations during a stipulated period of time, usually a calendar year.

Balance sheet
Also called the statement of financial condition, it is a summary of the assets, liabilities, and shareholders' equity.

Balance sheet identity
Total Assets = Total Liabilities + Total Shareholders' Equity

Balanced fund
An investment company that invests in stocks and bonds. The same as a balanced mutual fund.

Balanced mutual fund
This is a fund that buys common stock, preferred stock and bonds. The same as a balanced fund.

Basic balance
In a balance of payments, the basic balance is the net balance of the combination of the current account and the capital account.

Compensating balance
An excess balance that is left in a bank to provide indirect compensation for loans extended or services provided.

Original principal balance
The total amount of principal owed on a mortgage before any payments are made.

Day Trade
A trade that is entered into and closed out on the same day.

Traders
Persons who take positions in securities and their derivatives with the objective of making profits. Traders can make markets by trading the flow. When they do that, their objective is to earn the bid/ask spread. Traders can also be of the sort who take proprietary positions whereby they seek to profit from the directional movement of prices or spread positions.

Trade house
A firm which deals in actual commodities.

Trade on top of
Trade at a narrow or no spread in basis points relative to some other bond yield, usually Treasury bonds.

Trade draft
A draft addressed to a commercial enterprise.

Trade debt
Accounts payable.

Trade date
In an interest rate swap, the date that the counterparties commit to the swap. Also, the date on which a trade occurs. Trades generally settle (are paid for) 1-5 business days after a trade date. With stocks, settlement is generally 3 business days after the trade.

Trade credit
Credit granted by a firm to another firm for the purchase of goods or services.

Trade acceptance
Written demand that has been accepted by an industrial company to pay a given sum at a future date.

Trade
A verbal (or electronic) transaction involving one party buying a security from another party. Once a trade is consummated, it is considered "done" or final. Settlement occurs 1-5 business days later.

Thinly traded
Infrequently traded.

Terms of trade
The weighted average of a nation's export prices relative to its import prices.

Spot trade
The purchase and sale of a foreign currency, commodity, or other item for immediate delivery.

Reversing trade
Entering the opposite side of a currently held futures position to close out the position.

Registered trader
A member of the exchange who executes frequent trades for his or her own account.

Publicly traded assets
Assets that can be traded in a public market, such as the stock market.

Program trades
Also called basket trades, orders requiring the execution of trades in a large number of different stocks at as near the same time as possible.

Pre-trade benchmarks
Prices occurring before or at the decision to trade.

Posttrade benchmarks
Prices after the decision to trade.

Kansas City Board of Trade
The second largest grain exchange in the world, established in 1876. The KBOT was the first exchange to trade stock index (share price index) futures.

Chicago Board of Trade (CBOT)
The CBOT is the largest commodity exchange in the world. Founded in 1848, it accounts for about half of the turnover in futures contracts in the US and the bulk of the world's grain futures trading. The CBOT offers futures contracts in a range of commodities, from pork bellies to long-term US government bonds.

Block trade
A large trading order, defined on the New York Stock Exchange as an order that consists of 10,000 shares of a given stock or a total market value of $200,000 or more.

Counter trade
The exchange of goods for other goods rather than for cash; barter.

X or Cross Trade
A transaction that is not exposed to the public by outcry or usual trading practices. This type of trade is permissible provided it is done in accordance with the rules and regulations of the particular exchange and other regulatory organizations. The letter X can indicate this type of transaction on a ticker tape. It may be also used on a ticket or blotter.

Transfer Trades
Entries made upon the books of futures commission merchants for the purpose of: (a) transferring existing trades from one account to another within the same office where no change in ownership is involved; (b) transferring existing trades from the books of one commission merchant to the books of another commission merchant where no change in ownership is involved. Also called Ex-Pit Transactions.

Overnight Trade
A trade which is not liquidated on the same trading day in which it was established.