What Is a Trading Desk? A trading desk is a department or physical area within a brokerage trading firm or investment bank where securities transactions take place. Depending on the type of financial institution, traders may be trading for their own personal accounts. Or, the desks may be occupied by […]
Trading Basics
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What Is Short Interest? Can Investors Use It to Profit? What is short interest? The term refers to the number of shares that have been sold short against a stock or security but have not yet been covered or closed out. The value can be stated numerically or as a […]
Prop Trading – What is Proprietary Trading? Prop trading is the proprietary trading activity that occurs when a bank or firm trades stocks, derivatives, bonds, commodities, or other financial securities on its own behalf for its own economic gain. A financial firm or commercial bank that invests for direct market advantage […]
FPO – What Is a Follow-on Public Offer? FPO, or Follow-on Public Offer, is how a firm already listed on the stock exchange issues new shares to current shareholders or new investors. It is a procedure where a firm that is publicly traded issues fresh shares to existing shareholders or […]
What Is a Forward Contract? A forward contract is a tailored agreement between two parties to acquire or sell an item at a predetermined price on a future date. Forward contracts can be used for hedging or speculating, although due to their non-standardized character, they are best suited for hedging. […]
What Is an Iron Condor Options Strategy? An iron condor is the combination of a bullish and bearish vertical spread on the same underlying asset. It is made up of two call options (one long and one short) and two put options (one long and one short). Each of the […]