Max Pain (Options)
What is Max Pain (Options)? Max pain is a situation in which the stock price locks in on an option strike price as it nears expiration, which would cause financial losses for the highest possible number of options traders. It attempts to explain how, during the last days, the underlying stock prices often cluster around...
Melt Up
What is Melt Up? Melt up is a financial term that refers to a sharp improvement in the performance of the stock market due to reasons other than fundamental improvements in the economy. The improvement in investment performance is mainly driven by investor sentiment, where investors flock into buying stocks because they notice the market...
Dragonfly Doji Candlestick
What is Dragonfly Doji Candlestick? A dragonfly doji candlestick is a candlestick pattern with the open, close, and high prices of an asset at the same level. A dragonfly doji pattern does not appear constantly. It is used as a technical indicator that signals a potential reversal of the asset’s price. What is a Doji...
Markets in Financial Instruments Directive (MiFID)
What is the Markets in Financial Instruments Directive (MiFID)? The Markets in Financial Instruments Directive (MiFID) is a European Union regulatory framework that exerts a higher degree of transparency in the operation of financial markets and standardizes disclosure requirements for investment firms and banks operating in the European Union. MiFID aims to increase investor protection...
Bernie Madoff
Who is Bernie Madoff? Bernie Madoff, a well-known Wall Street investment advisor, became world-famous for operating possibly the largest Ponzi scheme in history. When investigators for the FBI and the SEC finally uncovered the massive fraud in 2008, losses by Madoff’s investors were estimated at more than $50 billion over the course of nearly 20...
