Transaction
The entry or liquidation of a trade. |
Similar financial terms
Bootstrap transactionA highly leveraged transaction (HLT)
Transactions costs
The transactions costs are the expenses to the execution of a trade. It includes the commissions plus the difference between the price obtained and the midpoint of the bid-offer spread.
Spread transaction
A position in two or more options of the same type.
Transactions motive
A desire to hold cash for the purpose of conducting cash based transactions.
Transaction demand (for money)
The need to accommodate a firm's expected cash transactions.
Transaction loan
A loan extended by a bank for a specific purpose. In contrast, lines of credit and revolving credit agreements involve loans that can be used for various purposes.
Transaction exposure
Risk to a firm with known future cash flows in a foreign currency that arises from possible changes in the exchange rate.
Taxable transaction
Any transaction that is not tax-free to the parties involved, such as a taxable acquisition.
Structured arbitrage transaction
A self-funding, self-hedged series of transactions that usually utilize mortgage securities as the primary assets.
Round-trip transactions costs
Costs of completing a transaction, including commissions, market impact costs, and taxes.
Cash transaction
A transaction where exchange is immediate, as contrasted to a forward contract, which calls for future delivery of an asset at an agreed-upon price.
