Education Glossary

Showing Terms 1 - 20 out of 52 found.
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Definitions Starting with "d"

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Term Definition
DAX

A acronym for the German index of the 30 leargest stocks on the Frankfurt Stock Exchange.

Discount Bond

A bond that is selling Bonds selling at a price below it's face value.

Discretionary Account

A brokerage account where a client grants their investment manager the authority to make all decisions on how their portfolio is managed. 

Dark Cloud Cover

A Candlestick Chart pattern that signals a bearish trend, where a black candlestick forms just after a long white Candlestick.

Differential

A charge assessed by the dealer/specialist for executing an odd lot order, represented by a fraction of a point added to the purchase price or subtracted from the sale price.

Descending Triangle

A chart pattern for a security that is defined by the use of two Trendlines on either side of a series of high and low prices that looks similar to a triangle pointed to the right.

Distributions

A company's payment of capital gains or dividends. Typically distributed to shareholders at least once a year.

Demand Index

A decision support tool designed by James Sibbit that reflects the buying and selling power of markets through formulas based on volume and price ratios.

Delivery Month

A designation within a Futures contract that specifies the contract's expiration and when delivery of the underlying asset must occur.

Dollar Cost Averaging

A disciplined strategy that reduces risk where an investor contributes a fixed amount into a particular investment at regular, consistent intervals over time, thereby averaging the price paid for the instrument over that period.

Dividends

A distribution of after tax profit by a company to it's shareholders based upon class of stock and the amount of shares owned.

Doji

A frequent pattern found in Candlestick price charts, where an opening and closing price for a price bar are nearly identical.

Deal

A live trade transaction completed at current market price as opposed to an order.

Derivative Pricing Model

A method that analyzes several factors to propose the fair price of a futures or options contract. The best-known example is the Black-Scholes Option Pricing Model.

Distribution Line

A predictive technical indicator that evaluates increasing trade volume as a forecast of increasing stock prices.

Double Top

A price chart pattern that resembles a 'M', it identifies a peak of a security's price, followed by a drop, then a rebound back to the same level as that of the original peak.

Double Bottom

A price chart pattern that resembles a 'W', it identifies a drop of a security's price, followed by a rebound, then a drop back to the same level as that of the original drop.

Diversification

A risk management strategy that involves having a variety of investment types within a portfolio.

Defensive Stock

A stock whose stable performance is not correlated with overall stock market performance.

Diagonal Spread

A strategy that is initiated through the simultaneous purchase and sale of two options of the same type (both calls or both puts) that have different expiration and strike prices.

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