What are Cyclical Stocks? Cyclical stocks tend to closely follow the overall economy, rising swiftly during economic expansions and falling sharply during recessions. Cyclical stocks have a business cycle that is influenced by macroeconomic or systematic fluctuations in the overall economy. These equities are noted for tracking an economy’s expansion, […]
Trading Terms
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What Is a Margin Call? A margin call is a demand from your broker to boost the equity in your trading account. It occurs when a margin account loses value and dips below the maintenance margin requirement level. A margin call is triggered when the value of an investor’s margin […]
What are Covered Calls in Options Trading? A covered call is a two-part options trading strategy in which stock is purchased or owned and calls are sold against the underlying security. Covered calls refer to a financial transaction in which the investor selling call options owns an equivalent amount of […]
What Is a SPAC and What is a SPAC Stock? A SPAC or special purpose acquisition company is a publicly-traded, cash-rich company. Its sole purpose is to find a suitable private company and take it public through a merger or acquisition. As a result, the private company can be publicly […]
Stock Delta: What is Delta in Stocks and Options? The term Stock Delta refers to a ratio measuring the rate of change in a stock option or derivative for every $1 increase in value of the underlying stock or security. Delta is the ratio that compares the change in the […]
What Is a Futures Market? A Futures Market is an exchange where futures contracts are traded for stocks, securities, or commodities with a set price for a future date. A futures market is an auction market. Traders purchase and sell commodity and futures contracts for delivery at a later date. […]