GLOSSARY

Day Trading

Day trading, or intra-day trading, is a style of trading that takes advantage of price fluctuations that occur throughout the day. Day traders tend to exit their chosen markets by the end of the day, taking their profits or cutting their losses so as to be considered “square” at the close of each day. Day traders are highly valued market participants as they contribute liquidity and price efficiency to the markets they trade.

Dealing Desk

A dealing desk is simply the department of a brokerage where incoming trades are filled.

Derivative

A derivative is a tradable financial instrument that has no value in and of itself. Derivatives take their value from an underlying asset, such as gold, crude oil, foreign exchange pairs, share prices, indices, exchange rates, bonds etc. Essentially, anything with a price feed can be traded as a derivative. Derivatives allow traders to speculate on the future value of an asset, without having to purchase it outright.

Dove

In economics, a Dove refers to a central banker or economic policy advisor who is in favour of policies that involve low interest rates. This practice is based on the notion that inflation is not an imminent threat to the country or economy in question. When these individuals make public statements in regards to this effect, these statements are referred to as being ‘dovish’.