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Trading Terms

Transfer Response

The term "frequency response" is used to describe the shape of a wave as it passes through a filter. This shape is compared to the original shape of the wave before entering the filter. It is an important concept to understand in the world of finance, as it affects the performance of various financial instruments. Let's delve deeper into the significance of frequency response in the realm of finance.

Open Trades

As a finance professor, it's important to understand the concept of active trades in a customer's account. These are trades that have not yet been closed or settled, and are...

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Demand guarantee

A demand guarantee, often issued by a bank, is a form of guarantee that allows the beneficiary to receive payment simply by making a demand. This differs from conditional or...

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MF SIP

A key investment tactic in the world of finance is the Mutual Fund Systematic Investment Plan (SIP). This approach requires investors to consistently invest a fixed amount o...

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Uncovered Option

Options trading includes buying or selling an option without having a position in the underlying futures contract. This is also referred to as a naked option. It is a common...

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