by Henry Liverman | May 1, 2021 | Market Definitions
A strategy for options trading designed to imitate a long stock position. A synthetic long stock is created by purchasing at-the-money calls and then selling an equivalent number of at-the-money puts with the same expiration date. The downside of a synthetic long...
by Henry Liverman | May 1, 2021 | Market Definitions
An immediate injection of financial support into a company or organization facing imminent bankruptcy or collapse. Bailouts can take the form of loans, cash, bonds, or stock purchases. They may or may not require financial reimbursement. A bailout may also be...
by Henry Liverman | Apr 30, 2021 | Market Definitions
An official document companies must file with Securities and Exchange Commission (the SEC) as part of a registration process in order to provide an investment offering to the public. They’re filed for stocks, bonds, and mutual funds. These documents assist...
by Henry Liverman | Apr 30, 2021 | Market Definitions
Also referred to as a trading range. This occurs when a security trades within consistent high and low prices for a period of time. The top of the range provides price resistance, while the bottom provides price support and the value of the security fluctuates...
by Henry Liverman | Apr 30, 2021 | Market Definitions
A variation of a futures contract, a perpetual futures contract (or perpetual swap) is an agreement between two counterparty traders to buy or sell an asset at a non-specified point in the future. They differ from traditional futures contracts in that there is no...
by Henry Liverman | Apr 30, 2021 | Market Definitions
The opposite of “overbought,” oversold refers to a security that is trading at a lower price and has the potential to bounce back. Oversold conditions don’t necessarily mean that a bounce-back is imminent, however. They can last for a long time, so...
