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An option is a contract that grants the holder the right, but not the obligation, to either buy or sell an underlying asset or market factor during a specific time frame.

It is important to know the difference between Options and futures contracts and when to use either.

What Is A "Trailing Stop"? In order to properly define a trailing stop, we must first define a simple stop loss. A stop loss order is an order to buy or sell a given security at a specific price, once the market hits the defined stop loss price. At that point, the original market position is rendered "net zero" or "flat." A trailing stop is a bit more complex in…

A derivative contract is an agreement that allows for the possibility to purchase or sell another type of financial instrument or non-financial asset.

The global financial system is made up of a series of institutions and capital markets that has come to be known informally and collectively among investors as "the market." The market can be understood as the collective global arena for buying and selling financial and physical assets. The Ever-Moving Market While integrally linked to what economists call the "real economy," which represents the sale and purchase of physical goods and…

Austerity refers to actions taken by a government, to reduce its budget deficit using a combination of spending cuts or tax rises.

A fiscal cliff is any series of potential economic events and factors that could combine to cause a severe and sudden economic downturn.

The ability to increase market exposure past actual investment.

Fixing a currency's exchange rate to that of another country.

An initial public offering of shares of a company's stock for the first time.

The measure of an economy's increase in production.