Cryptocurrency
Yield
Yield
Yield is a financial term that refers to the income return on an investment. It is a measure of the cash flow an investor receives from a security or investment over a specific period, typically expressed as a percentage based on the investment’s cost, market value, or face value. Yield can be calculated in various […]
Working Order
A “working order” is a term commonly used in financial markets, particularly in the context of trading and executing orders for financial instruments such as stocks, bonds, commodities, or currencies. Here’s a detailed explanation of what a working order entails: Definition: A working order refers to an order to buy or sell a financial […]
WM/Reuters FX Benchmark
The WM/Reuters FX Benchmark, also known as the WM/Reuters Closing Spot Rates, is a widely used benchmark for foreign exchange (FX) rates. It is used to determine the daily closing rates for major currency pairs in the global FX market. The benchmark is widely recognized and utilized by financial institutions, corporations, asset managers, and other […]
Variation Margin
Variation Margin is a term commonly used in the context of derivative transactions. Derivatives are financial instruments whose value is derived from an underlying asset, such as stocks, bonds, commodities, or currencies. These instruments are used for hedging, speculation, or arbitrage purposes. In derivative transactions, two parties enter into an agreement to buy or […]
Unrealized Gain/Loss
Unrealized Gain/Loss refers to the profit or loss that has been generated on an investment but has not been realized yet because the investment has not been sold. When you own an asset, such as stocks, bonds, or real estate, the value of that asset can fluctuate over time. Unrealized Gain/Loss represents the difference […]
Two Way Quote
A Two-Way Quote, also known as a bid-ask quote or a bid-offer quote, is a pricing system used in financial markets. It consists of two prices: the bid price and the ask price. The bid price represents the highest price that a buyer is willing to pay for a particular financial instrument, while the ask […]
Trading Mechanics
Trading mechanics refers to the technical and practical aspects of buying and selling transactions in financial markets. It encompasses the processes of transmitting orders, accessing market prices, executing trades, and settling transactions. Trading mechanics involve several components. An investor looking to trade typically opens an account with a brokerage firm or broker. This account […]
Top of Book
“Top of Book” (TOB) refers to the best bid and ask prices for a financial instrument in a market. It represents the highest bid price and the lowest ask price available in a given market. In financial markets, the order book displays all the buy and sell orders for a particular instrument. The top […]
Tomorrow Next
Tomorrow Next (Tom-Next) is a financial term used in trading and investment markets. It refers to a type of swap transaction that allows investors to roll over their positions from the current trading day to the next trading day. In the context of foreign exchange (forex) trading, Tom-Next is commonly used to extend the […]
Tom Next
Tom-Next, also known as T/N, is a term used in the foreign exchange market to refer to the process of rolling over an open position to the next business day. It is commonly referred to as a swap transaction. The Tom-Next transaction is based on the calculation of the interest rate differential for the […]
