A nickname for a bond issued in Japan by a non-Japanese issuer. A Samurai bond is denominated in yen.
In finance, a scalper is a trader who buys something and then very quickly sells it again, intending to make a profit from small price fluctuations.
A sector fund is a mutual fund or unit trust focused on investing in a certain sector, e.g. the automotive sector or the mining sector.
A bond secured by collateral.
A sinking fund is comprised of money that is periodically deposited into the fund for the gradual repayment of a debt or funding of a future expense.
Stop Loss Order
An order placed with a broker (human broker or automatic trading system) to sell a security if the market price of the security drops down to a certain level.
The Stop Loss Order is typically used to limit an investor’s loss on a position.
It is important to remember that a trade can not be guaranteed to take place just because the market price has reached the stop loss order level. If no buyer is interested in buying, no trade can occur. Also, trading in the security can be halted by the exchange in certain situations.
Synonyms: Stop Order; Stop-Market Order
In the context of options trading, a straddle is the simultaneous purchase of a put option and a call option with the same underlying instrument and with the same expiry date, but with different exercise prices.
This method is also employed by warrants traders.
Structured Products are bespoke investment products created to meet specific needs that can not be met by standardized (off-the-shelf) investment products.
SWIFT = Society for Worldwide Interbank Financial Telecommunications
The Society for Worldwide Interbank Financial Telecommunication provides a network where financial institutions around the world can send and receive information about financial transactions.
A majority of all international interbank messages are sent through the SWIFT network, and Businesses Identifier Codes (previously known as Bank Identifier Codes) are commonly referred to as SWIFT codes.
SWIFT does not hold accounts for its members, it doesn’t facilitate fund transfers, and it doesn’t it carry out any form of clearing or settlement. Instead, payment orders are sent through SWIFT and these orders must be settled by correspondent accounts that the financial institutions have with each other.
Society for Worldwide Interbank Financial Telecommunications is a cooperative society under Belgian law.
A synthetic positions is a trading positions created to emulate the characteristics of a non-synthetic position. More specifically, it is created to have the same risk and reward profile as an equivalent non-synthetic position.
Example: A synthetic option is a synthetic position constructed without actually buying or selling any option.
Synthetic positions be used to change one position into another without the need to actually close out any existing positions. This will typically involve fewer transactions than exiting an existing non-synthetic position and then entering another non-synthetic.