The Trader’s Dictionary contains explanations of many of the financial terms that successful traders use on a daily basis. This Glossary covers over 200 terms related to the world of finance and trading. Knowing the terms and understanding their meanings will help you learn about trading.
There are currently 8 names in this directory beginning with the letter H.
Hedge - a person involved in risk insurance. The hedger can be a company, bank or other individual. In financial markets, hedgers are often referred to as specialists in the futures markets, who are engaged in insuring the client's risky positions by purchasing derivative financial instruments (futures, forwards, options).
A hedge fund is a financial market participant whose main goal is to make a profit on various trading floors of the world for themselves and their clients.
Hedging - a system of measures to insure financial risks. Hedging involves opening positions in one market in order to minimize the risk of an unfavorable outcome for positions opened in other markets. The following can be considered as risks: currency — changes in the exchange rate; credit - the inability of customers to pay their obligations; price - change in prices of acquired assets; geopolitical - a change in political sentiment in the country in relation to other countries; other.
High-frequency trading is a type of trading where trades can be opened and closed within fractions of a second. Trading robots and algorithms are used for HFT, and companies that deal with HFT locate their offices as close as possible to the servers of brokers and dealers so that the execution error is minimal.
Holding is a group of companies in which there is an organization (parent company) that owns other companies of the group and controls their activities. Ownership of the company occurs through the ownership of company shares, the share of which allows the parent company to exercise management and control functions in it. The holding may consist of diversified and unrelated companies.