Monthly Archives: February 2026

Algorithmic trading uses computer programs to execute trades based on predefined rules related to price, timing, volume, or mathematical models. By automating decisions, it reduces emotional involvement and can execute trades faster and more frequently than manual trading.

An All Or None order instructs the broker to execute the entire order at once or not at all, allowing no partial fills. For example, a trader wanting to buy 300 shares at a specific price will only proceed if all shares can be purchased at that price. AON orders are often used in low-liquidityContinue Reading

Aggregate risk refers to the total level of exposure an investor has across all open positions and financial instruments. It includes risks arising from both current (spot) and future (forward) market prices. For example, holding positions in USD/JPY and EUR exposes the investor to combined currency fluctuations.

Aggregate supply represents the total quantity of goods and services produced domestically within an economy during a certain period. A strong aggregate supply that meets demand often signals a healthy economy and can support a stronger national currency.

Aggregation involves combining multiple futures contracts to increase market exposure or manage risk. This is commonly done through strategies such as spreads or strips.

After-hours trading takes place outside regular exchange trading hours, which typically run from 9:30 a.m. to 4:00 p.m. EST. Trading may continue until around 8:00 p.m. EST following major news or announcements. While this allows quick reactions to events, lower liquidity during these hours often results in higher price volatility.

Aggregate demand is the total demand for goods and services within an economy over a specific period. It includes consumer spending, business investment, government expenditure, and net exports, which are exports minus imports.

An adjustable peg is an exchange rate system where a currency is fixed to a stronger currency, such as the US dollar or euro. The pegged rate is periodically adjusted to improve the country’s economic competitiveness, usually in response to global market changes.

An adjustable rate is a rate that changes over time. In trading, for example, interest charged on leveraged positions may fluctuate due to market conditions or policy changes beyond the borrower’s control. A loan initially issued at 5% interest could later rise to 15% or fall to 4%, depending on external factors.

Accrued interest is the interest that has built up on a bond or fixed-income instrument since the most recent interest payment date.