Financial markets

2017-07-27T19:44:41+03:00[Europe/Moscow] en true Collateralized debt obligation, Systemic risk, Market (economics), Short (finance), Speculation, Quantitative easing, Contract for difference, Arbitrage, Margin (finance), Spot contract, Lender of last resort, Electronic communication network, Electronic trading, Implied repo rate, Systematic risk, Unit price, Broker-dealer, Layering (finance), Hypothecation flashcards Financial markets
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  • Collateralized debt obligation
    A collateralized debt obligation (CDO) is a type of structured asset-backed security (ABS).
  • Systemic risk
    In finance, systemic risk is the risk of collapse of an entire financial system or entire market, as opposed to risk associated with any one individual entity, group or component of a system, that can be contained therein without harming the entire system.
  • Market (economics)
    A market is one of the many varieties of systems, institutions, procedures, social relations and infrastructures whereby parties engage in exchange.
  • Short (finance)
    In finance, short selling (also known as shorting or going short) is the practice of selling securities or other financial instruments that are not currently owned, and subsequently repurchasing them ("covering").
  • Speculation
    Speculation is the purchase of a good with the hope that it will become more valuable at a future date.
  • Quantitative easing
    Quantitative easing (QE) is a monetary policy used by central banks to stimulate the economy.
  • Contract for difference
    In finance, a contract for difference (CFD) is a contract between two parties, typically described as "buyer" and "seller", stipulating that the seller will pay to the buyer the difference between the current value of an asset and its value at contract time (if the difference is negative, then the buyer pays instead to the seller).
  • Arbitrage
    In economics and finance, arbitrage (US /ˈɑːrbᵻtrɑːʒ/, UK /ˈɑːbᵻtrɪdʒ/, UK /ˌɑːbᵻtrˈɑːʒ/) is the practice of taking advantage of a price difference between two or more markets: striking a combination of matching deals that capitalize upon the imbalance, the profit being the difference between the market prices.
  • Margin (finance)
    In finance, margin is collateral that the holder of a financial instrument has to deposit with a counterparty (most often their broker or an exchange) to cover some or all of the credit risk the holder poses for the counterparty.
  • Spot contract
    In finance, a spot contract, spot transaction, or simply spot, is a contract of buying or selling a commodity, security or currency for settlement (payment and delivery) on the spot date, which is normally two business days after the trade date.
  • Lender of last resort
    The term lender of last resort (LOLR) originates from the French expression dernier ressort.
  • Electronic communication network
    An electronic communication network (ECN) is a type of computerized forum or network that facilitates the trading of financial products outside traditional stock exchanges.
  • Electronic trading
    Electronic trading, sometimes called etrading, is a method of trading securities (such as stocks, and bonds), foreign exchange or financial derivatives electronically.
  • Implied repo rate
    Implied Repo Rate (IRR) is the rate of return of borrowing money to buy an asset in the spot market and delivering it in the futures market where the notional is used to repay the loan.
  • Systematic risk
    In finance and economics, systematic risk (in economics often called aggregate risk or undiversifiable risk) is vulnerability to events which affect aggregate outcomes such as broad market returns, total economy-wide resource holdings, or aggregate income.
  • Unit price
    Average prices represent, quite simply, total sales revenue divided by total units sold.
  • Broker-dealer
    In financial services, a broker-dealer is a natural person, a company or other organization that engages in the business of trading securities for its own account or on behalf of its customers.
  • Layering (finance)
    Layering is a strategy in high-frequency trading where a trader makes and then cancels orders that they never intend to have executed in hopes of influencing the stock price.
  • Hypothecation
    Hypothecation is the practice where (usually through a letter of hypothecation) a debtor pledges collateral to secure a debt or as a condition precedent to the debt, or a third party pledges collateral for the debtor.