Market Traders Institute - Forex

Market Traders Institute Inc
Public warehouse
Storage facility operated by an independent warehouse company on its own premises.
Greenshoe option
 Option that allows the underwriter for a new issue to buy and resell additional shares.( - Market Traders Institute )

Market Traders Institute: Risk-return tradeoff
The basic concept that higher expected returns accompany greater risk, and vice versa.

Take off
A sharp increase in the price of a stock, or a positive movement of the market as a whole.

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National Securities Clearing Corporation (NSCC)
A clearing corporation that facilitates the settlement of accounts among brokerage firms, exchanges, and other clearing corporations. ( Market Traders Institute )

Away from us
Used in context of general equities, to characterize role of a competing broker/dealer. Trading away from us signifies that stock is bought and/or sold with institutions using other tradingfirms.

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No Substitution
Within the text on a proxy card are the words: "The shareholder appoints certain people (collectively, the proxy committee) with full power of substitution to vote the shares." If the security holder strikes out this phrase, the proxy cannot be voted if there is a change in the designated proxy committee.( Market Traders Institute Inc )
Market Traders Institute: Discounted basis
To sell a debt instrument below maturity value, so that the difference makes up all or part of the interest.
Market Traders Institute Inc: Elliott Wave Theory
Technical market timingstrategy that predicts price movements on the basis of historical price wave patterns and their underlying psychological motives. Robert Prechter is a famous Elliott Wave theorist.

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Market Traders Institute
Demand loan
A loan which can be called by the lender at any time and carries no set maturity date.
Commission house
A firm that buys and sells futures contracts for customer accounts. Related: futures commission merchant, omnibus account.( - Market Traders Institute Inc )

Market Traders Institute: Broad-Base
Generally referring to an index, it indicates that the index is composed of a sufficient number of stocks or of stocks in a variety of industry groups. See also: Narrow-Based.

Extrapolative statistical models
Models that apply a formula to historical data and project results for a future period. Such models include the simple linear trend model, the simple exponential model, and the simple autoregressive model.

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Frictional cost
The difference between an index fundreturn and the index it represents. The typically lower rate of return from the fund results from transactions costs. ( Market Traders Institute Inc )

Dirty float
A system of floating exchange rates in which a government may intervene to change the direction of the value of the country's currency.

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Direct Claim
A financial claim issued by a deficitunit to acquire funds for investment in real assets.( Market Traders Institute Inc )
Market Traders Institute Inc: Delivery
The tender and receipt of an actual commodity or financial instrument in settlement of a futures contract.
Market Traders Institute: Federal gift tax
A federal tax imposed on assets conveyed as gifts to individuals.

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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. In general, trade in and out of a position at the same price, neither making a profit nor taking a loss.
Mortgage-Backed Securities Clearing Corporation (MBSCC)
"Founded" in 1979, MBSCC is the sole provider of automated post-trade comparison, netting, risk management and pool notification services to the mortgage-backed securities market. The organization is a registered clearing agency with the Securities and Exchange Commission and majority-owned by its members -- MBS dealers, inter-dealer brokers and other non-broker/dealers. MBSCC provides its specialized services to major market participants active in various Government National Mortgage Association (GNMA), Fannie Mae(FNMA) and Federal Home Loan Mortgage Corporation (FHLMC) MBS programs.( - Market Traders Institute Inc )

Market Traders Institute Inc: Lockbox
A collection and processing service provided to firms by banks, which collect payments from a dedicated postal box to which the firm directs its customers to send payment to. The banks make several collections per day, process the payments immediately, and deposit the funds into the firm's bank account.

Direct participation program
An investment program enabling investors to directly participate in the cash flow and tax benefits of the partnership invested in by the investor, typically a form of passive investment.

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Outside market
Used in the context of general equities. Outside the inside market (above the lowest offering and below the highest bid). ( Market Traders Institute )

Delta
The ratio of the change in price of an option to the change in price of the underlying asset. Also called the hedge ratio. Applies to derivative products. For a call option on a stock, a delta of 0.50 means that for every .00 that the stock goes up, the option price rises by Insiders
These are directors and senior officers of a corporation-in effect, those who have access to inside information about a company. An insider also is someone who owns more than 10% of the voting shares of a company..50. As options near expiration, in-the-money call option contracts approach a delta of 1.0, while in-the-moneyput options approach a delta of -1. See: hedge ratio, neutral hedge. Call deltas range from 0.00 to +1.00; put deltas range from 0.00 to -1.00. If the call delta is 0.69, the put delta is -0.31 (call delta minus 1 equals put delta; 0.69 -1 =-0.31).

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Closed-end mortgage
Mortgage against which no additional debt may be issued.( Market Traders Institute )
Market Traders Institute: Trend
The general direction of the market.
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Dilution protection
Standard provision that changes the conversion ratio in the case of a stock dividend or extraordinary distribution to avoid dilution of a convertible bondholder's potential equityposition. Adjustment usually requires a split or stock dividend in excess of 5% or issuance of stock below book value.

Crossover rate
The return at which two alternative projects have the same net present value.(20 January 2010 - Press article Market Traders Institute Inc )

Ocean bill of lading
Receipt for a shipment by boat, that includes freight charges and title to the merchandise.

Coffee, Sugar & Cocoa Exchange (CS&CE)
The New York-based commodity exchange trading futures and options. The CS&CE shares the trading floor at the Commodities Exchange Center.

Open order (good-till-cancelled, GTC order)
Order to buy or sell a security that stays active until it is completed or the investorcancels it.

Pre-Money Valuation
The value of a company just before its most recent round of financing. Related: Post-Money ValuationMarket Traders Institute

Countercyclical stocks
Stocks whose price tends to rise when the economy is in recession or the market is bearish, and vice versa.

Takes a call
Requires a phone call to an account in order for a trade to be completed. See: Show me. (05 September 2009 Market Traders Institute Inc )

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Price continuity
Minimal price changes due to transactions.

Taxable acquisition
A merger or consolidation that is not a acquisition. The selling shareholders are treated as having sold their shares.( 07 January 2008 Online press Market Traders Institute Inc )


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