Broker-Dealer

Related Terms

• Bid/Ask Spread

  The bid/ask spread is the difference between the bid and ask price. The “ask” price is also known as the “offer” price. It’s the difference between the buyer’s and seller’s prices. The “bid “represents demand and the “ask” represents supply for an asset. In other words, it’s what the buyer is willing to pay for […]

• Binary Options

  A binary option is a type of options contract in which the payout will depend entirely on the outcome of a “Yes or No?” or “True or False” proposition. Don’t be intimidated! Its name may sound complicated, but binary options are arguably a simpler way to trade than traditional options or currencies. Just like traditional […]

• Commodity Futures Trading Commission (CFTC)

  Commodity Futures Trading Commission (CFTC) is a US-based agency responsible for regulating the derivatives markets, which includes options, swaps, and futures contracts. CFTC plays an important...

• Liquidity

  Liquidity describes the extent to which an asset can be bought and sold quickly, and at stable prices, and converted to cash. Liquidity refers to how quickly and at what cost one can sell an asset,...

• Spread

  Forex brokers will quote you two different prices for a currency pair: the bid and ask price. The “bid” is the price at which you can SELL the base currency. The “ask” is the price at which you can...