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Trading Terms

Certificate of Deposit

The longer the term of the CD, the higher the interest rate. A Certificate of Deposit, or CD, is a financial tool that allows individuals to deposit a specific amount of money with a financial institution for a predetermined period. In return, the depositor earns interest on their investment. The longer the term of the CD, the higher the interest rate, providing an incentive for individuals to keep their money invested for a longer period. This allows for the growth of their initial investment over time.

Banker’s acceptance

A bank's acceptance of a bill of exchange serves as a form of financial support for a customer's transaction involving the sale of goods. This could involve the exporter d...

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Support Line

A professor of finance would define a horizontal support level as a graphical representation of a price point where a downward trend has halted and the price has either st...

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Fill Order

A term used in finance to describe an order that requires immediate execution or else it will be cancelled. This order is typically placed when the market is highly volatile...

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Beta (Coefficient)

Beta is a crucial metric in finance that measures the level of risk associated with a security in the market. It is essentially a comparison of an individual stock's histori...

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