Trading Basics
Dividend Adjustment
An adjustment made to an equity derivative to reflect a dividend in the underlying. Typically this is offset by a change in price from the underlying moving to reflect the payment.
Other Trading Basics
Black Box Trading
Also referred to as automatic or algorithmic trading.
The trader does not need to see the system in operation, in effect its a black box.
Balance of Trade
Also BoT. This is the difference between trade into or out of a country.
Experts and imports. It can be negative or positive and is used by traders in fundamental analysis.
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