Glossary

account executive a salesperson employed by a stock exchange member broker/ dealer, also known as a registered representative. The account executive gives advice on buying and selling securities, collecting a percentage of any commission income generated as compensation.

account sizing determining the appropriate amount of trading capital needed to trade a given group of markets using a given trading approach, without exceeding one's own risk tolerance level.

adjusted futures price the cash-price equivalent reflected in the current futures price. This is calculated by taking the futures price times the conversion factor for the particular financial instrument (e.g., bond or note) being delivered.

adjustment the process of buying or selling instruments to lock in profits or bring a position back to a desired risk level.

analysis paralysis when too much information is taken in, leaving an investor confused and unable to make any sort of investment decision.

annual return the simple rate of return earned by an investment for each year.

arbitrageurs (arbs) players who attempt to profit from price differences between two substantially equal assets. This might involve, for instance, buying a commodity on one exchange and simultaneously selling a similar commodity on another exchange in order to profit from the price differences of the two.

ascending base pattern the least common of the continuation pattern groupings. Angular wedging over a 9- to 16-week period with the deepest ...

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