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Financial Glossary

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AccountA record of financial transactions for an individual at a bank or a brokerage company
Account ExecutiveAn individual who usually works for a brokerage company and has the legal power to buy or sell financial instruments on behalf of a client
ActivityThe volume of financial instruments over a given period of time
Aggregate DemandThe total demand for goods and services produced in the economy over a period of time. This includes consumer demand of durable and nondurable items, investment spending by companies on capital goods, government spending on publicly provided goods and services, and the difference between exports and imports of goods and services of the country
Aggregate SupplyA measure of the total supply of goods and services produced within the economy from domestic sources that are available to meet aggregate demand
All or NoneA Futures order that instructs the broker to either fill the whole order or not at all
AlphaA coefficient measuring the risk-adjusted performance of a currency or stock option. A large alpha indicates that the underlying has performed better than would be predicted given its beta (volatility)
American OptionAn option that may be exercised at any time prior to expiration, as opposed to a European option that can only be exercised on a specific date (usually at expiration)
ArbitrageThe simultaneous purchase and sale of the same (or equivalent) financial instrument on different markets to profit from price discrepancies
AskThe price at which the currency or instrument is offered
At BestInstructions given to a dealer to buy or sell the currency or instrument at the best rate that can be obtained
At or BetterInstructions given to a dealer to buy or sell the currency or instrument at a specific rate or better
At the MarketA buy or sell order that must be executed at the best price currently available in the market. These are also called market orders
At-the-MoneyAn option whose strike / exercise price is equal to or near the current market price of the underlying instrument
Away from the MarketOn limit orders, a buy order away from the market would be placed lower than the current market price, and sell orders would be placed higher than the current market price. Such orders are usually held to be executed later
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