Settlement
Settlement is the final step of a trade, when ownership of the asset is transferred and payment is completed. The timing, method and responsible institutions depend on the market, instrument and venue, and the rules change over time.
Investment & trading encyclopedia
Understand investment products, market mechanics, indicators and research terminology. Each entry includes an explanation, example, cautions and related learning.
Showing 1–4 of 4
Short Selling
Short selling is selling a security that the seller does not own, usually borrowed through a broker, with the aim of buying it back later at a lower price and returning it to the lender. The seller gains if the price falls and loses if it rises.
Slippage
Slippage is the difference between the price you expected for a trade and the price at which it actually executes. It arises from price movement and limited depth between the decision and the fill, and it can be adverse or, occasionally, favorable.
Stop Order
A stop order is an instruction that stays inactive until the market reaches a chosen trigger price, after which it becomes a live order. A standard stop becomes a market order when triggered, so its fill price is not guaranteed.