Liquidity
Liquidity: A function of volume and activity in a market. It is the efficiency and cost effectiveness with which positions can be traded and orders executed. A more liquid market will provide more...
View ArticlePip
Pip: The smallest price increment in a currency. Often referred to as “ticks” in the futures markets. For example, in EURUSD, a move from .9015 to .9016 is one pip. In USDJPY, a move from 128.51 to...
View ArticlePremium
Premium (also “Swap” or “Cost of Carry”): The cost, often quoted in terms of dollars or pips per day, of holding an open position. The post Premium appeared first on TradeCommands.
View ArticleSpot Foreign Exchange
Spot Foreign Exchange: Often referred to as the “interbank” market. Refers to currencies traded between two counterparties, often major banks. Spot Foreign Exchange is generally traded on margin and...
View ArticleOption
An Option is a contract that gives the buyer the right, but not the obligation, to buy or sell an underlying asset at a specific price on or before a certain date. An option, just like a stock or bond,...
View ArticleCall
CALL is an option contract giving the owner the right (but not the obligation) to buy a specified amount of an underlying security at a specified price within a specified time. The post Call appeared...
View ArticlePut
PUT is an option contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified time. The buyer of a put option...
View ArticleShort
Short position is the sale of a borrowed security, commodity or currency with the expectation that the asset will fall in value. In the context of options, it is the sale (also known as “writing”) of...
View ArticleLong
Long position is the buying of a security such as a stock, commodity or currency, with the expectation that the asset will rise in value. In the context of options, the buying of an options contract....
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FOMC pattern
Started to scan the bigest gap and/or intraday vol in EURUSD. This is an important parameter to set up properly the short option algo of HeliumQuant. This FOMC event makes around 130 pip. The post FOMC...
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