Glossary

The interest rate, expressed as a percentage of the principal, stated on a fixed income security.

A trading strategy where by an investor sells call options against shares of stocks already owned.

A bearish trading strategy invollving the writing of put options while shorting an e quivalent amount of the underlying stock.

A term associated with oil futures trading named after the chemical process of cracking (heating oil distilled to produce different grades of fuel). Crack spread is a hedge trade constructed by entering long in oil futures while at the same time, shorting heating oil and gasoline futures.

Plunging market prices driven by a crisis that adversely impacts investor confidence in the markets. 

The credit terms between broker and client relating to a margin account.

Hedging one financial instrument’s risk by taking a position in a derivatives contract.

An occurance of a security’s price crossing a boundary thought to be Bullish or Bearish.

An amount that publicly traded companies must remit to Preferred stock shareholders irregardless of earnings, in advance of dividends paid to Common stock shareholders. 

A technical indicator that tracks the movement of money into and out of the market for a given time frame.