An important part of measuring various items in investing, a weighted average is a mathematical formula that takes into account the relative size or importance of each item in a list of financial [...]
The economic markets overflow with complicated terms. Get a quick overview on the most common terms investors use to navigate the markets. Discover the ins and outs of macroeconomics through terms like GDP, forex and more.
A repurchase agreement is a short-term loan structured as the sale of securities. As part of the repo, the seller agrees to buy the securities back at a later date. Learn more about a repo works [...]
A Ponzi scheme is a type of financial fraud that occurs when the perpetrator promises consistent, guaranteed returns on an investment. In reality, however, it simply involves paying early [...]
The Consumer Price Index (CPI) is a statistic derived and used around the globe to identify prevailing inflationary or deflationary pressures. It is calculated by averaging the prices of a basket [...]
Layering is an illegal tactic used to manipulate markets as a means of driving the price of an asset up or down, which is followed by a trade in the opposite direction. Learn more about layering [...]
Quote stuffing is the practice of rapidly placing and then retracting large quantities of orders upon a targeted market or security. It is deemed an illegal act of market manipulation and [...]
Stop running is the practice of manipulating the price action of a security in order to trigger a bulk execution of stop loss orders at market. A legal trading strategy, it involves driving a [...]
Both the U.K. and U.S. have made "spoofing" an illegal trading tactic, but why? Learn more about this manipulative strategy and its biggest violators.
Effective leverage relates the amount of account equity and value of an asset involved in a transaction. It is calculated by dividing the total position size by account equity.
Reversal trading attempts to capture profit through identifying the exhaustion point of a trend in price action. Reversals are an inherently risky counter-trend form of trade.