A - Z Trading Terms

# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

The financial asset upon which a derivative’s value is based.
Examples: A stock is the underlying asset for an option; crude oil is the underlying for an oil futures contract.

A profit or loss on a position that is still open and has not been closed (i.e., not yet realized).
Example: You bought a stock at $100, and it's now worth $110, but you haven’t sold it yet = Unrealized gain of $10.

Debt that is not backed by collateral.
Higher risk for lenders, which often means higher interest rates for borrowers.

A trade executed at a price higher than the previous trade.
Opposite of: Downtick

A former rule in U.S. markets that restricted short selling to occur only on an uptick. Aimed to prevent short sellers from pushing prices down in a falling market.

Market movement characterized by a consistent rise in the prices of financial instruments over a specific period.

Debt securities issued by the U.S. government.
Types include:

  • T-Bills (short-term)
  • T-Notes (intermediate)
  • T-Bonds (long-term) Considered: Risk-free benchmark assets