Financial Dictionary

This dictionary contains:
24549
financial terms

Trading costs




Trading costs

Costs of buying and selling marketable securities and borrowing. Trading costs include commissions, slippage, and the bid-ask spread.

RELATED TERMS
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Securities
Saleable papers, traded on stock exchanges, that yield an income (dividend, interest, etc.).

Trading
Buying and selling securities.

Slippage
The difference between estimated transactions costs and actual transactions costs. The difference usually represents revisions to price difference or spread and commission costs.

Spread
1) The gap between bid and ask prices of a stock or other security. 2) The simultaneous purchase and sale of separate futures or options contracts for the same commodity for delivery in different months. 3) Difference between the price at which an underwriter buys an issue from a firm and the price at which the underwriter sells it to the public. 4) The price an issuer pays above a benchmark fixed-income yield to borrow money.



SIMILAR TERMS
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Trade
To buy and sell; buying and selling.

Trade acceptance
Written demand that has been accepted by an industrial company to pay a given sum at a future date.

Trade away
Trade execution by another broker-dealer.

Trade balance
Overall result of a country's exports.

Trade barriers
Ways of restricting the amount of imports.

Trade credit
Credit one firm grants to another firm for the purchase of goods or services.

Trade date
The date that the counter parties in an interest rate swap commit to the swap. Also, the day on which a security or a commodity future trade actually takes place.

Trade debt
Accounts payable.

Trade deficit or surplus
The difference in the value of a nation's imports over exports (deficit) or exports over imports (surplus).

Trade discount
Price charged by manufactures to wholesalers, and wholesalers to retailers, obviously below the retail price.

Trade draft
A draft addressed to a commercial enterprise.

Trade flat
For convertibles, trade without accrued interest. Preferred stock always "trades flat," as do bonds on which interest is in default or is in doubt.

Trade house
A firm that deals in actual commodities.

Trade lanes
The direction of trade, e.g. US to Europe.

Trade me out
Work out of one's long position (usually created by committing firm principal to complete a trade block trade) by selling stock.

Trade on the wire
Immediately give a bid or offer to a salesperson without checking the floor conditions (listed), dealer depth (OTC) or customer interest.

Trade on top of
Trade at a narrow speed or no spread in basis points relative to some other bond yield, usually Treasury bonds.

Trade reporting
1) In a trade between two registered Market Participants (MP), only the sell side reports the trade. 2) In a trade between two member firms, only the sell side reports the trade. 3) In a trade between a registered MP and a non-registered MP (Market Maker not registered in a particular stock, an ECN, etc.), the registered MP reports the trade as a buy or sell. 4) Trading can occur ONLY between two member firms; thus, a buy is never reported.)

Trade surplus
A nation's excess of exports over imports during a given time frame.

Trade terms
Conditions of payment, when goods have to be paid for, in what way, at what price, etc.

Trade union or labor union
Association of employees that negotiates with employers to improve its members' incomes and working conditions.

Trade weight value of the dollar
The value of the dollar pegged to, a market basket of selected foreign currencies. The Federal Reserve calculates a trade-weighted value of the dollar based on the weighted-average exchange value of the dollar against the currencies of 10 industrial countries.

Trade-off
An exchange between two variables, such as quick sales and long-term growth, or unemployment and inflation.

TRADELINK
TRADELINK is a securities company with code 00536 at Hong Kong stock. Board lot: 2,000.

Trademark
A distinctive name or symbol used to identify a product or company and build recognition.

Trader
Person or organization that earns money by buying goods, commodities, securities, etc. and selling them at a profit.

TRADES & LABOR Credit Union
TRADES & LABOR is a credit union with head office in ALBERT LEA, MN

Trades by appointment
A stock that is very difficult to trade to because of illiquidity.

Trading
Buying and selling securities.

Trading ahead
A New York Stock Exchange rule violation. Basically, in this situation the specialist puts their firm's interest ahead of the investor's interest.

Trading authorization
A document (power of attorney) a customer gives to a broker in order that the broker may buy and sell securities on behalf of the customer.

Trading desk (dealing desk)
Personnel at an international bank who trade spot and forward foreign exchange.

Trading dividends
Maximizing a firm's revenues by purchasing stock in other firms in order to collect the maximum amount of dividends of which 70% is tax-free.

Trading halt
When trading of a stock, bond, option or futures contract is stopped by an exchange while news is being broadcast about the security.

Trading limit
The exchange imposed maximum daily price change that a futures contract or futures option contract can undergo.

Trading paper
CDs purchased by accounts that are likely to resell them.

Trading pattern
Long-range direction of a security or commodity futures price, charted by drawing one line connecting the highest prices the security has reached and another line connecting the lowest prices at which the security has traded over the same period.

Trading posts
The positions on the floor of a stock exchange where the specialists stand and securities are traded.

Trading price
The price at which a security is currently selling.

Trading profit
The profit earned on short-term trades of securities held for less than one year, subject to tax at normal income tax rates.

Trading range
The difference between the high and low prices traded during a period of time. For commodities, the high-low price limit an exchange establishes for a specific commodity for any one day's trading.

Trading unit
The number of shares of a particular security that is used as the acceptable quantity for trading on the exchanges.

Trading variation
The increments to which securities prices are rounded up or rounded down.

Trading volume
The number of shares transacted every day.

Traditional IRA
A tax deferred individual retirement account that allows annual contributions of up to $2000 for each income earner.

Traditional view (of dividend policy)
An argument that, "within reason," investors prefer higher dividends to lower dividends because the dividend is sure but future capital gains are uncertain.



PREVIOUS AND NEXT TERMS
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Trader
Person or organization that earns money by buying goods, commodities, securities, etc. and selling them at a profit.

Trades by appointment
A stock that is very difficult to trade to because of illiquidity.

Trading
Buying and selling securities.

Trading ahead
A New York Stock Exchange rule violation. Basically, in this situation the specialist puts their firm's interest ahead of the investor's interest.

Trading authorization
A document (power of attorney) a customer gives to a broker in order that the broker may buy and sell securities on behalf of the customer.

Trading costs

Trading desk (dealing desk)
Personnel at an international bank who trade spot and forward foreign exchange.

Trading dividends
Maximizing a firm's revenues by purchasing stock in other firms in order to collect the maximum amount of dividends of which 70% is tax-free.

Trading halt
When trading of a stock, bond, option or futures contract is stopped by an exchange while news is being broadcast about the security.

Trading limit
The exchange imposed maximum daily price change that a futures contract or futures option contract can undergo.

Trading paper
CDs purchased by accounts that are likely to resell them.

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This dictionary contains 24549 terms.







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