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Limit Down
A price limit is an established amount in which a price may increase or decrease in any single trading day from the previous day's settlement price. In financial and commodity markets, prices are only permitted to rise or fall by a certain number of ticks (or by a certain percentage) per trading session. Similarly, index futures In finance, a stock market index future is a cash-settled futures contract on the value of a particular stock market index. The turnover for the global market in exchange-traded equity index futures is notionally valued, for 2008, by the Bank for ... are often permitted to move a certain amount before the cash market opens. References Financial markets {{finance-stub ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Trading Day
In business, the trading day or regular trading hours (RTH) is the time span that a stock exchange is open, as opposed to Electronic trading hours, electronic or extended trading hours (ETH). For example, the New York Stock Exchange is, as of 2020, open from 9:30 AM Eastern Time Zone, Eastern Time to 4:00 PM Eastern Time Zone, Eastern Time. Trading days are usually Monday through Friday. When a trading day ends, all trading ends and is frozen in time until the next trading day begins. There are several special circumstances which would lead to a shortened trading day, or no trading day at all, such as on holidays or on days when a state funeral of a head of state is scheduled to take place. The NYSE and NASDAQ average about 252 trading days a year. This is from 365.25 (days on average per year) * 5/7 (proportion work days per week) - 6 (weekday holidays) - 4*5/7 (fixed date holidays) = 252.03 ≈ 252. The holidays where the stock exchange is closed are New Year's Day, Martin Luth ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Settlement Date
Settlement date is a securities industry term describing the date on which a trade (bonds, equities, foreign exchange, commodities, etc.) settles. That is, the actual day on which transfer of cash or assets is completed and is usually a few days after the trade was done. The number of days between trade date and settlement date depends on the security and the convention in the market it was traded. For example when settling a share transaction on the London Stock Exchange this is set at trade date + 2 business days. In USA, the transfer period was changed from 3 to 2 days in 2017. It is not necessarily the same as value date (when the settlement ''amount'' is calculated). For instance, the back office may require a few days to make payment. This gap (between valuation and settlement) is often written into the financial contract, although the actual settlement date can also differ from that originally specified because of problems or errors. It is occasionally referred to as "con ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Commodity Futures
In finance, a futures contract (sometimes called a futures) is a standardized legal contract to buy or sell something at a predetermined price for delivery at a specified time in the future, between parties not yet known to each other. The asset transacted is usually a commodity or financial instrument. The predetermined price of the contract is known as the ''forward price''. The specified time in the future when delivery and payment occur is known as the ''delivery date''. Because it derives its value from the value of the underlying asset, a futures contract is a derivative. Contracts are traded at futures exchanges, which act as a marketplace between buyers and sellers. The buyer of a contract is said to be the long position holder and the selling party is said to be the short position holder. As both parties risk their counter-party reneging if the price goes against them, the contract may involve both parties lodging as security a margin of the value of the contract with ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Commodity Tick
Futures exchanges establish a minimum amount that the price of a commodity can fluctuate upward or downward. This minimum fluctuation (trade increment) is known as a tick or commodity tick. Hence, a tick is any fluctuation in the price of a security. Each futures contract has a different size, quantity, valuation etc., so each tick size that can be applied to any one futures contract, is dependent on the previous variables. Tick size is important as it determines the possible prices available. For example, each "tick" for the grain market (soybeans, corn and wheat) is 0.25 cents per bushel, on one 5,000-bushel futures contract. See also *Percentage in point (PIP) *Tick size *NASDAQ futures NASDAQ futures are financial futures which launched on June 21, 1999. It is the financial contract futures that allow an investor to hedge with or speculate on the future value of various components of the NASDAQ market index. Several futures inst ... References External linksFutures Contra ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Index Futures
In finance, a stock market index future is a cash-settled futures contract on the value of a particular stock market index. The turnover for the global market in exchange-traded equity index futures is notionally valued, for 2008, by the Bank for International Settlements at US$130 trillion. Uses Stock index futures are used for hedging, trading, and investments. Index futures are also used as leading indicators to determine market sentiment. Hedging using stock index futures could involve hedging against a portfolio of shares or equity index options. Trading using stock index futures could involve, for instance, volatility trading (The greater the volatility, the greater the likelihood of profit taking – usually taking relatively small but regular profits). Investing via the use of stock index futures could involve exposure to a market or sector without having to actually purchase shares directly. There are cases of equity hedging with index futures. One case is where a portf ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
