This glossary provides definitions for key trading and financial terms commonly used on MERJ Exchange.
A - C
- Ask Price: The lowest price a seller is willing to accept for a security.
- Bid Price: The highest price a buyer is willing to pay for a security.
- Blockchain: A decentralized digital ledger used for recording transactions.
- Broker: A firm or individual that executes trades on behalf of clients.
D - F
- Digital Asset Securities: Securities issued and recorded using blockchain technology.
- Fill or Kill (FOK): An order that must be executed immediately in full or canceled.
- Fundamental Analysis: Evaluating a security based on financial and economic factors.
G - I
- Good Until Cancelled (GTC): An order that remains active until manually canceled.
- Index: A statistical measure representing the performance of a group of securities.
- International Order Book: A segment of MERJ Exchange that operates during market hours of the primary exchange for the instrument (e.g. US for most).
J - L
- Limit Order: An order that executes only at a specified price or better.
- Liquidity: The ease with which a security can be bought or sold without affecting its price.
M - O
- Market Order: An order that executes immediately at the best available price.
- Market Surveillance: Monitoring of trading activity to detect manipulation or fraud.
- Order Book: A real-time list of buy and sell orders for a security.
P - R
- Price Limit Filters: Mechanisms to prevent extreme price movements in the market.
- Portfolio: A collection of investments held by an individual or entity.
- Risk Management: Strategies used to minimize financial losses.
S - U
- Settlement: The process of transferring securities and funds after a trade is executed.
- Stop Order: An order that becomes a market order when a specific price is reached.
- Ticker Symbol: A unique identifier assigned to a security for trading purposes.
V - Z
- Volatility: The degree of variation in a security’s trading price over time.
- Watchlist: A customized list of securities that a trader monitors for price changes.