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Trading Terms

Covered Write

When writing a call against a long position in the underlying stock, the goal is to receive a premium in order to gain additional return on the common stock or provide some protection against a decrease in the stock's value. This protection is limited to the premium amount minus any transaction costs. By taking this step, the writer is able to potentially increase their gains or mitigate potential losses.

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Understand the meaning and definition of Front-running in the context of stock market, trading, and investments.

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Understand the meaning and definition of Straddle in the context of stock market, trading, and investments.

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Understand the meaning and definition of Reward-Risk Rank in the context of stock market, trading, and investments.

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Channel

Understand the meaning and definition of Channel in the context of stock market, trading, and investments.

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Understand the meaning and definition of Market Order in the context of stock market, trading, and investments.

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Negative Amortization

Understand the meaning and definition of Negative Amortization in the context of stock market, trading, and investments.

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