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
Candlestick Chart
A type of chart using a security’s opening, closing, high and low price for a particular period.
Basis Point
A basis point is 0.01% and is typically used when quoting interest rate changes.
A move of 0.25% is described as 25 basis points.
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