Category: glossary , Asked by: C. Sanders from Clearwater, United States
A: Traders use the butterfly strategy when they feel a particular stock will remain neutral during a certain period. By entering into a butterfly trade, the trader is essentially betting that the underlying stock price will remain close to where it is curren Visit etoro.com
Category: glossary by F. O. From Austria
a "trading authorization " is The level of power entrusted to a broker or agent granting specific levels of access to a client's account. Trading authorization dictates what actions an agent may perform, such as buying or selling. This is similar to the concept of power of attorney, but only deals with the client's trading account. Investors may authorize an agent by filling out the required documentation. The client will likely be able to choose between granting either full or limited authorization, with the latter restricting the agent from withdrawing funds from the account. Once trading authorization has been established, an agent may purchase and sell securities on the client's behalf, make inquiries into the account and possibly withdraw or transfer funds.
Category: glossary by U. Foreman from Dublin, Ireland
"leg " is A term describing one side of a position with two or more sides. When a trader legs into a spread, they establish one side first, hoping for a favourable price movement so the other side can be executed at a better price. This is, of course, a higher-risk
Category: glossary by P. Norris from Enschede, Netherlands
the "co-pay " is A type of insurance policy where the insured pays a specified amount of out-of-pocket expenses for health-care services such as doctor visits and prescriptions drugs at the time the service is rendered, with the insurer paying the remaining costs. However, unlike coinsurance, where the insured is required to pay a certain percentage of the covered costs, co-pay plans require the insured to pay a specified dollar amount. These co-pay fees may vary among insurers but will typically be $25 or less. For example, a co-pay plan may require the insured to pay $25 per doctor visit or $10 per prescription up to a specified coverage limit. To see if your insurance plan has a co-pay option, check your contract. If there is a co-pay option, it will usually be one set amount for doctor visits, emergency room visits and other medical services.
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