X or Cross Trade

Similar financial terms

Cross default
Default on a loan agreement, which results in the default of the entire loan portfolio.

Golden cross
In technical analysis, what happens when the short moving average price of a stock (say, its 20-day moving average) cuts above a longer moving average (say, its 50-day average).

For chartists, this cross is a sign that the market mood has turned decidedly in favour of the stock, especially if up to that point two moving averages have been moving roughly in parallel.

Dead cross
In technical analysis, what happens when the short moving average price of a stock (say, its 20-day moving average) falls below a longer moving average (say, its 50-day average).

For chartists, this cross is a sign that sentiment in the market has turned against the stock, especially if up to that point two moving averages have been moving roughly in parallel.

Cross hedging
The practice of hedging with a futures contract that is different from the underlying being hedged.

Cross holdings
One corporation holds shares in another firm.

Cross rates
The exchange rate between two currencies expressed as the ratio of two foreign exchange rates that are both expressed in terms of a third currency.

Cross-border risk
Refers to the volatility of returns on international investments caused by events associated with a particular country as opposed to events associated solely with a particular economic or financial agent.

Cross-sectional approach
A statistical methodology applied to a set of firms at a particular point in time.

Crossover rate
The return at which two alternative projects have the same net present value.

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.

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.

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.