Trading Basics
Controlled Risk Bet
A trade where the maximum downside is predefined, usually with a guaranteed stop loss order.
Other Trading Basics
Carry Trade
A forex trading strategy of borrowing funds in a low-interest rate currency and buying assets in higher yielding currency.
For years this was selling Yen to buy Dollars.
Close to the Money
In options trading when the underlying price of the security is close to the strike price of the option.
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