Margin trading is a type of trading in which investors borrow money from a broker to buy securities or other assets. The borrowed money is known as a margin loan, and it allows investors to leverage their capital and potentially increase their returns. In margin trading, the investor’s account is known as a margin…
Hedging is a risk management strategy that involves taking offsetting positions in order to reduce the risk of loss from an investment. In the stock market, hedging can involve buying and selling different securities or derivatives, such as options or futures contracts, in order to protect against potential losses in the underlying stock. For…
Arbitrage is a trading strategy that involves buying and selling the same security or asset in different markets or in different forms in order to take advantage of price differences. For example, an arbitrage trader might buy a stock in one market and sell it in another market where the price is higher, or…
STBT stands for “Sell Today, Buy Tomorrow.” It refers to a trading strategy in which an investor sells a stock on one day and buys it back the next day, taking advantage of the price difference between the two days. STBT trades are typically executed in the cash market, which is the market for…
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