Pip
A pip is the conventional unit for measuring a forex price move. It is usually the fourth decimal place (0.0001) of a quote, but the second decimal place (0.01) for pairs quoted in Japanese yen.
Investment & trading encyclopedia
Understand investment products, market mechanics, indicators and research terminology. Each entry includes an explanation, example, cautions and related learning.
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Position Sizing
Position sizing is the rule that decides how many units of an instrument to hold in a single position. A common approach is fixed-fractional sizing, which sets the size so that the loss to a planned exit price equals a chosen percentage of account equity.
Price-to-Book Ratio (P/B)
The price-to-book ratio compares a stock's market price with the accounting value of shareholders' equity per share. It indicates how much the market pays for each unit of net assets recorded on the balance sheet.
Price-to-Earnings Ratio (P/E)
The price-to-earnings ratio compares a stock's share price with the company's earnings per share. It shows how many units of currency the market currently pays for one unit of annual earnings.
Put Option
A put option gives its buyer the right, but not the obligation, to sell a set quantity of the underlying asset at the strike price on or before expiration, in return for a premium.