Electronic exchanges operate through fully automated systems that match buy and sell orders without the need for a physical trading floor. Instead of human floor brokers shouting orders, trades are processed by advanced computers that can handle...
A block trade differs from a regular trade in several significant ways, primarily in terms of the size, method of execution, and the impact it can have on the financial markets.
A custody account is an account that holds your financial assets, such as shares, bonds and funds, in a secure electronic format. When you buy shares through a broker, you don’t physically receive certificates. Instead, your investments are stored...
Sprint trading works best with a broker and platform designed for fast execution. Because trades are opened and closed within seconds or minutes, even a small delay can affect results. Traders usually look for brokers that offer low spreads, stable...
Green banking initiatives aim to align the financial sector with environmental sustainability goals by integrating eco-friendly practices into banking operations. The main objectives of these initiatives revolve around promoting environmental...
Stock market points are a simple way to measure how much a stock index has moved up or down. A point represents a one-unit change in the value of that index. For example, if the Dow Jones moves from 35,000 to 35,050, it means the index gained 50...
Odd lots, referring to stock transactions that involve quantities of shares that are less than the standard trading unit, typically have a minimal impact on liquidity in the stock market. Liquidity in the market refers to the ease with which assets...
A monopoly significantly impacts consumer surplus, which is the difference between what consumers are willing to pay for a good or service and what they actually pay. In a competitive market, numerous firms drive prices down to the level of marginal...
Investors play a crucial role in contributing to market liquidity and efficiency by actively participating in buying and selling securities. Market liquidity refers to the ease with which assets can be bought or sold without significantly impacting...
The safest way to start learning stock trading is to focus on education and practice before putting any money at risk. Begin by learning the basics: how stocks work, what moves prices, and how different order types function. This foundation helps you...