Day Trade
A trade that is entered into and closed out on the same day. |
Similar financial terms
Today's HighThe intraday highest trading price.
Today's Low
The intraday lowest trading price.
Daytrading
Refers to trading in securities were positions are opened and closed on the same day.
Black Monday
The black monday refers to Monday 19th October 1987 when stock market values around the world fell heavily triggered by a large fall in US share prices. On Black Monday, the S&P 500 Index lost 20,5%, the Dow Jones Industrial Average (DJIA) lost 22,6%. The Nasdaq Composite, however, lost "only" 11,3%.
Day Order
A buy or sell order that will expire automatically at the end of the trading day on which it is entered.
Skip-day settlement
The trade is settled one business day beyond what is normal.
Notice day
A day on which notices of intent to deliver pertaining to a specified delivery month may be issued.
Last trading day
The final day under an exchange's rules during which trading may take place in a particular futures or options contract. Contracts outstanding at the end of the last trading day must be settled by delivery of underlying physical commodities or financial instruments, or by agreement for monetary settlement depending upon futures contract specifications.
Day around order
A day order that supersedes (cancels and replaces) the previous order by altering its size or price limit.
Black Friday
A precipitous drop in a financial market . The original Black Friday occurred on September 24, 1869, when prospectors attempted to corner the gold market.
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.
Balance of trade
Net flow of goods (exports minus imports) between countries.
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.
