Floor Trader (FT)
What is a Floor Trader (FT)? A floor trader (FT) is an individual who conducts transactions on the exchange floor for his/her own account. Usually, a floor trader trades in derivatives or securities on the trading floor and seeks to make profits from price swings over the short term. A floor trader can be referred...
Forward Market
What is a Forward Market? A forward market is a marketplace that offers financial instruments that are priced in advance for future delivery. It tends to be referenced as the foreign exchange market, but it can also apply to securities, commodities, and interest rates. How a Forward Market Works Forward markets create forward contracts. The...
Fractional Share
What is a Fractional Share? A fractional share is when a full single share is split. For example, fractional shares occur during stock splits, dividend reinvestment plans, or various other actions that may result in a partial share of ownership. Generally speaking, the stock market does not offer partial shares, and while some do, it...
Delivery Versus Payment (DVP)
What is Delivery Versus Payment (DVP)? Delivery versus payment (DVP) is a method of settlement for specifically the securities market. It basically guarantees the transfer of securities only after payment is made. It requires the buyer to fulfill their payment obligations before or immediately at the time of the delivery of the purchased security/securities. The...
Disclosure
What is Disclosure? Disclosure, in financial terms, basically refers to the action of making all relevant information about a business available to the public in a timely manner. What Does “Relevant Information” Mean? Relevant information about a business refers to any and every piece of information, including facts, figures, dates, procedures, innovations, and so on,...
