Minimum price fluctuation
Smallest increment of price movement possible in trading a given contract. Also called point or tick. The zero-beta portfolio with the least risk.
Similar financial terms
The portfolio of risky assets with lowest variance.
Maximum price fluctuation
Definition: [crh] The greatest amount by which the contract price can change, up or down, during one trading session, as fixed by Definition: exchange rules in the contract specification. Related: Limit price.
Maximum price fluctuation
The maximum amount the contract price can change, up or down, during one
trading session, as fixed by exchange rules in the contract specification. Related: limit price.
Minimum price fluctuation ...
Price fluctuation is an important tendency of an open market. The Gross Domestic Product (GDP) and stock prices are on the rise during a bull market. A bear market exhibits negative trends; it can also be a prelude to recession.
Wide price fluctuations and significant changes in trading volume typically characterize volatile markets.
A commodity exchange's established maximum limits for
fluctuations in futures prices during any one trading session.
Minimum unit by which a futures price or an option premium can
fluctuate per trade, also known as tick size.
The minimum ~ of a security or commodity, either up or down.
Español: Movimiento mínimo de precios, variación de precio
Tied aid credit: ...
See: Maximum ~
Technique for finding the maximum value of some equation subject to stated linear constraints.
See: Maximum ~
Limit up, limit down
The maximum price change allowed for a commodity futures contract per trading day. Limitation on asset dispositions
A bond covenant that restricts in some way a firm's ability to sell major assets.
Limitation on conversion ...
See: Maximum ~
A market allowing the buying or selling of large quantities of an asset at any time and at low transactions costs.
Beta: Gauging ~s
The Uses And Limits Of Volatility
An Introduction To Value at Risk (VAR)
How To Convert Value At Risk To Different Time Periods ...
Smallest increment of market price movement possible in a given futures or options contract....(Read more)
Minimum Quote Size
A London Stock Exchange term which refers to the minimum number of shares in which market makers must display prices on the SEAQ for those s.
Volatility: The ~s of a security or mutual fund relative to an appropriate market index. The more volatile a security or mutual fund, the more it is subject to rapid and extreme ~s relative to the market.
Candlestick chart A popular method of charting ~s that displays an asset's opening, closing, high, and low prices for the period. Points on a candlestick chart are represented as a box, called the real body, with a vertical line on both the top and bottom.
Related: minimum ~ and tick. Point and figure chart A price-only chart that takes into account only whole integer changes in price, i.e., a 2-point change. Point and figure charting disregards the element of time and is solely used to record changes in price.
Following the Hamilton paper (1983), Mork (1989) has showed that extending the sample to 1988, the correlation becomes only marginally significant and that there are asymmetric effects between oil ~s and GDP growth.
The Goldman Sachs Commodity Index, now known as the S&P GSCI, is a diversified, production-weighted index that tracks the ~ of commodities.
Monthly income preferred security
Non cumulative preferred stock
Noncumulative preferred stock
Nonparticipating preferred stock
Participating preferred stock
Preferred dividends ...
Since part of the ~ of a security is unique, it does not relate to ~s of other securities held. This allows the investor to diversify, or eliminate, a portion of each security's risk.
Over a course of several decades, real estate prices tend to appreciate, but they are not immune to short-term ~s. Buying a home can be a very emotional decision, but you should not let feelings interfere with the business aspect of your decision.
In the nineteenth century, Chicago's trading pits offered an organized venue in which farmers and other suppliers of agricultural commodities, such as warehouse owners and brokers, could remove the risk of ~s from their business plans.
Also, asset ~s tend to be proportional to those prices. For example, a 50 dollar stock might experience daily ~s on the order of one dollar while a 200 dollar stock might experience daily ~s on the order of four dollars.
Refers to the ceiling and floor of the ~ of an underlying asset. A collar is usually set up with options, swaps, or by other agreements.
Beta: A measure of a security's ~s (volatility) relative to an appropriate market index. For example, the Standard & Poor's 500 Stock Index (S&P 500) has a beta of 1. Stocks with betas greater than 1 are subject to more rapid and extreme ~s than the market.
Commodity stocks managed by countries or international organizations to moderate market ~s. When prices rise above a pre-set ceiling, buffer stocks are sold, lowering market prices. When prices fall below an established floor price, buffer stocks are purchased, raising prices.
Buy-and-hold investors still need to take ~s into account, and they must pay attention to the stock's ongoing performance. Naturally, the price at which you buy a stock directly affects the potential profits you'll make from its sale.
Commodity stockpiles managed in such a way as to moderate ~s. Goods may be sold from a stockpile when prices reach or approach predetermined ceiling prices, and purchased for the stockpile when prices reach or approach predetermined floor levels.
As folks noticed these ~s, they became interested in investing in the commodity ETFs. There are hundreds of them on the market and more coming daily.
Beta Value A measure of the magnitude of a portfolio's past share-~s in relation to the ups and downs of the overall market (or appropriate market index). The market (or index) is assigned a beta of 1.00, so a portfolio with a beta of 1.
Historical Volatility refers to a measure of ~ over time. Historical volatility uses daily, weekly, monthly etc. price data to empirically assess the past volatility of a market or an instrument.
High and low end of a security, commodity future, or market's ~s over a period of time. Daily newspapers publish the 52-week high and low price range of stocks traded on the New York Stock Exchange, American Stock Exchange, and over-the-counter markets.
consumer price index is a monthly measure of ~s compiled by Statistics Canada. The consumer price index measures the retail prices of a "basket of goods and services" including food, transportation, housing, clothing, etc.
Historical volatility can be calculated by looking at ~s over a specific period in the past. Implied volatility can be implied from option prices observed in the market place.
Flags result from ~s within a narrow range and mark a consolidation before the previous move resumes.
As an example transaction by a consumer or producer of a metal designed to protect him against ~s. A consumer of platinum, for instance, may "hedge" against a possible price increase by buying enough metal to cover his needs in the form of a futures contract.
In security charts, the moving average is a curve that averages ~s of the security over a 50-day or 200-day interval. Each point on the moving average curve is calculated by averaging the closing prices from the previous 50 (or 200) days of trading.
Said of a securities market that is characterized by light trading, and larger ~s relative to volume than would be the case if trading is active.
Day traders takes advantage of small ~s of securities and does not hold them beyond one day. Day traders usually pay smaller trading commisions and are required by a trading facility to deposit an amount which usually starts at $5,000.
FLAG - A pattern reflecting ~s within a narrow range, generating a rectangular area on ...
FLAG LOT - a parcel of land shaped like a flag; the staff is a narrow strip of land providing vehicular...
Limit Price Refer: Maximum ~. Price instructed by investor for limit orders. … [Read more...]
Author: Skip Stamous Filed Under: l Tagged With: L Glossary, Limit Price
Limit Up ...
Stabilising speculation - Where the actions of speculators tend to reduce ~s.
Stable dollar assumption - Is the assumption when using money as a measuring unit and preparing financial statements expressed in dollars, that the dollar is a stable unit of measurement.
See: Maximum ~
Limit up, limit down
The maximum price change allowed for a commodity futures contract per trading day.
T4 = Market Value of Equity / Book Value of Total Liabilities. Adds market dimension that can show up security ~ as a possible red flag.
T5 = Sales/ Total Assets. Standard measure for total asset turnover (varies greatly from industry to industry).
A transaction used as a protective maneuver intended to reduce the risk of loss from ~s of securities.
The highest price that was paid for a stock during a certain period. For example, the high for the day was $80, but the high for the year was $120.
An adjustment in shipping charges to offset ~s in the cost of bunker fuel.
The fuel used to power a ship.
Investment technique used to reduce potential of loss from ~s. Hedging involves taking an offsetting position in the market with the use of derivatives.
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Stock that has volatile ~s and thus, rises and falls like a yo-yo.
An investment strategy to reduce risk of loss from ~s of securities.
That being said, brand loyalty is sometimes very sensitive to ~s. In the soft drink industry, many consumers will switch back and forth between Pepsi and Coke, depending on which is on sale.
Trading limits are designed to protect investors from wild ~s and the potential for major losses. They're comparable to the circuit breakers established by stock exchanges to suspend trading when prices fall by a specific percentage.
Interest-rate risk is the potential for gains or losses resulting from fluctuations in the market price of fixed income securities. Such ~s are a consequence of changes in prevailing interest-rate levels.
Interim audit work ...
Collar Agreement: Agreed upon adjustments in the number of shares offered in a stock-for-stock exchange to account for ~s before the completion of the deal.
Collateral: Assets than can be repossessed if a borrower defaults.
Most often investors assume real estate prices will not fall down and they only go up year after year. It is not so. During the mid 2009 some of the real estate investments were quoting below 30% to 40% from their 2007 prices. Real Estate investments are also prone for ~s.
Count analysis entails the usage of a series of X's that are representing price increases, and O's are representing price decreases, with a normal scale and a predetermined reversal amount. Investors examine the ~ sequence to approximate future price movements.
The phrase may apply to a single security or to the entire stock market. In a thin market, ~s between transactions are usually larger than when the market is liquid. A thin market in a particular stock may reflect lack of interest in that issue, or a limited supply of the stock.
The main producers of precious metals outside of South Africa are the United States, Canada, and Australia. These funds are known to be excellent inflation hedges, but experience sometimes wild ~, placing them in the category of higher risk.
Liquidity is one of the most important characteristics of a good efficiently trading market. Less liquid markets often can have greater fluctuations in price and thus can create enhanced opportunities created by greater ~, compared to more liquid markets or securities.
Buyers are prohibited from paying points on HUD or Veterans' Administration guaranteed loans (sellers can pay, however). On a conventional mortgage, points may be paid by either buyer or seller or split between them.Related: minimum ~.
â†' Frederic Mishkin: Not all Bubbles Present a Risk to the Economy, Financial Times, 9th November 2009
â†' Lessons for Monetary Problems from Asset ~s, (World Economic Outlook October 2009 Chapter 3) International Monetary Fund 2009 ...
Unit cost averaging Buying securities at intervals in order to smooth out the effect of ~s.... Unit Trust An investment vehicles that allows investors to pool money. The fund grows or shrinks as investors add or withdraw money from it....
This is done by buying when the price is low and adding to the buffer stock, selling out of the buffer stock when the price is high, hoping to reduce the size of ~s. See international commodity agreement.
See stumbling block.
Built-in Agenda ...
[ITDS] bunker adjustment factor An adjustment in shipping charges to offset ~s in the cost of bunker fuel. [ITDS] bunker c fuel oil (or bunkering fuel) Fuel used for ships. Generally refers to a No. 6 grade of residual fuel oil with an API gravity about 10.5o.
See also: What is the meaning of Index, Transaction, Minimum price, Tick, Equilibrium?