Trade Execution
What is Trade Execution? Trade execution is when a buy or sell order gets fulfilled. In order for a trade to be executed, an investor who trades using a brokerage account would first submit a buy or sell order, which then gets sent to a broker. On behalf of the investor, the broker would then...
Eurocurrency
What is Eurocurrency? Eurocurrency is a currency that is deposited at a foreign bank outside of its home country. Contrary to its name, the term does not refer to euros that are deposited outside of Europe. It is a general term that applies to all currencies that are deposited anywhere outside of its local country....
Structured Note
What is a Structured Note? A structured note is a hybrid security that combines multiple payoffs from multiple securities, usually a bond and a derivative. The bond component makes up approximately 80% of the investment and provides principal protection to investors. The derivative component makes up the remaining 20% of the investment and provides upside...
Straight-Through Processing (STP)
What is Straight-Through Processing (STP)? Straight-through processing (STP) is an automatic solution for seamless electronic transactions and interactions without manual intervention. STP is commonly used by financial institutions to reduce transaction time and stock markets to facilitate seamless initiation and settlement of securities without manual intervention. The straight-through processing’s infrastructure provides fully electronic and smooth...
Stop-Limit Order
What is a Stop-Limit Order? A stop-limit order is a tool that traders use to mitigate trade risks by specifying the highest or lowest price of stocks they are willing to accept. The trader starts by setting a stop price (order to buy or sell a stock once the price’s reached a specific point), and...
