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Hemline Theory

The theory that holds that stock prices tend to move in the same direction as the length of hemlines on...

Electronic Trading

A trading system that is used to buy and sell securities (such as stocks and bonds), financial derivatives (such as...

Secular Bull Market

A secular market that is characterized by a very long upward trend. A secular bull market combines the characteristics of...

Santa Claus Rally

A season of the year during which the stock market exhibits strength. This reflects a seasonal surge in stock prices...

Exhaust Price

The price of a security (brought on margin) that exhausts the equity of a margin account. This happens when its...

Quote Rate Pirate

A market participant who practices quote stuffing (quote spamming), by placing a large number of orders for a stock, often...

Quote-Driven Market

A market that is controlled by market makers or dealers in the sense that prices of securities are determined through...

Whipsaw Loss

A loss that results from a security making a sudden reversal immediately after a position is taken. The whipping action...

Wash Trading

An illegal manipulative trading practice which involves entering into, or purporting to enter into, transactions in a way that gives...

Effective Bid-Ask Spread

The difference between trade price and midpoint. That is, it is the difference between the price at which a dealer...