optimizing a trading strategy on historical data and applying it to fresh data to see how well the strategy works.
an accounting record of a nation's currency transactions over a certain time period, comparing foreign amounts taken in to the amount of domestic currency paid out.
a quantitative financial statement summary of a company's assets, liabilities and net worth at a specific point in time.
an investment portfolio which contains diversified holdings over a range of asset classes, typically including equities, fixed income, property, and cash.
one who believes prices will move lower. the term is derived from the manner in which a bear fights, which is to rear onto its hind legs and strike down with its front paws.
a false signal which indicates that the rising trend of a stock or index has reversed when in fact it has not.
a standard, usually an index or other market measurement, used for comparison by a fund manager as a yardstick to assess the risk and performance of a portfolio.
a model portfolio used by fund mangers to provide a standard for measuring risk and return performance.
the degree of sensitivity of a stock in relation to swings in the market.
the price that the market participants are willing to pay for a security.
a mathematical model used to estimate the price of an option to determine fair value.
the shares of a large company which is known for excellent management and a strong financial structure; a generic term for high quality securities. the name is taken from the color of the highest priced chip at a casino.
a debt instrument issued by such entities as corporations, governments or their agencies with the purpose of raising capital by borrowing.
shares which existing shareholders receive from a company on a free, pro rata entitlement basis.
the value of an asset or security as it appears on a balance sheet.
a form of security analysis in which a company’s performance, history, management and potential is more important than general industry and the economy as a whole. the opposite of top-down analysis.
french term for stock exchange derived from the word meaning “purse”. more generally, any stock exchange.
relates to the number of issues participating in a market move - either up or down. as a rally develops, and the number of advancing issues is declining, the rally is suspect. as a decline develops, and the number of declining issues falls, the decline becomes suspect.
the fee charged by a broker for the execution of a transaction; also called the commission.
one who expects prices to rise. the term is derived from the manner in which a bull fights, which is to lower its’ head and thrust up with its’ horns.
a falsely-generated signal which indicates that the price of a stock or index has reversed to an upward trend, but which proves to be false.
gold, silver, platinum, or palladium bars or ingots.
a long-term pattern of alternating periods of economic expansion, prosperity, recession, and recovery.
in the financial markets, this term means the purchase of a long position to offset a short position; or a company’s repurchase of issued shares.
the maximum value or amount available to make new purchases of non-marginable stocks. buying power is equal to cash available plus unutilized margin line.