The difference between the expected price of a trade, and the price the trade actually executes at. Slippage often occurs during periods of higher volatility, when market orders are used, and also when large orders are executed when there may not be enough interest at the desired price level to maintain the expected price of trade.Slippage is a term often used in both forex and stock trading, and although the definition is the same for both, slippage occurs in different situations for each of these types of trading. |||In forex, slippage occurs when a limit order or stop loss occurs at a worse rate than originally set in the order. Slippage often occurs when volatility, perhaps due to news events, makes an order at a specific price impossible to execute. In this situation, most forex dealers will execute the trade at the next best price.Slippage in the trading of stocks, often occurs when there is a change in spread. In this situation, a market order placed by the trader may get executed at a worse than expected price. In the case of a long trade, the ask may have increased. In the case of a short trade, the bid may have lowered. Traders can help to protect themselves from slippage by avoiding market orders when not necessary.
Similar to a butterfly spread, a condor is an options strategy that also has a bear and a bull spread, except that the strike prices on the short call and short put are different. The purpose of this option strategy is to earn limited profits, regardless of market movements, with a small amount of risk.
An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to describe the U.S. economy of the mid- to late-1990s - it was "not too hot, not too cold, but just right." Everything in the Goldilocks economy is fine until the three bears (or bear market) come home for their porridge!
A money manager who works outside of the fund, and is hired by a fund manager to help with an investment portfolio. These subadvisors are allowed to manage all or some of a fund's assets, and usually are given a set of investment objectives to adhere to when selecting securities. Watch: Mutual Funds Mutual fund subadvisors usually head teams of smaller, more specialized investment firms. They are hired because of their expertise using specific securities in various industries. For fund managers, the benefit of using subadvisors is that they allow funds to tap talent that is not available in-house.Investors should be aware of the fees the fund must pay to subadvisors. These fees could be charged to shareholders over and above any fees that already exist. These fees may take away value from a shareholder's investment.
An independent research center founded by European credit institutions with the help of the Centre for European Policy Studies. It works to research the implications of certain actions relating to credit and how they will have an impact on both the micro- and macroeconomic environment. Much of the research is done through economic and policy analysis and trend monitoring. |||In addition to the extensive research conducted at the Institute, the ECRI also provides advice to the major policymakers on issues such as credit-market regulation and credit reporting and supervision. It organizes workshops and conferences to share its members' ideas and creates an open forum for debate and discussion by all the European interest parties.
An act passed in 1936 by the U.S. Government that provides federal regulation of all futures trading activities. This act replaced the Grain Futures Act of 1922. The Commodity Futures Trading Commission (CFTC) was created as a result of the CEA to monitor the U.S. futures and options markets.
A type of share that gives its shareholder veto power over changes to the company's charter. These shares were most popular during the 1980s with governments who wanted to maintain control over privatized companies. Golden shares are used mainly in the United Kingdom.
A ratio published monthly by the Investment Company Institute that compares the amount of cash relative to total assets held by a mutual fund. Equity investors use the mutual fund liquidity ratio to gauge the demand for shares and the bullishness or bearishness of portfolio managers. Watch: Mutual Funds For example, if a mutual fund is sitting on a large amount of cash, the theory is that it is doing so because it is hard pressed to find quality investment opportunities; therefore, it has a bearish sentiment toward the market. Conversely, if a mutual fund is highly invested and has a very small amount of cash on hand, the theory is that it has found some excellent investing opportunities and is taking advantage of these opportunities by being nearly fully invested - that is to say, it is bullish.