Monthly Archives: September 2026
Over-the-counter Definition
Written on September 3, 2026 at 5:03 pm, by wwwvftradingsc
What Does Over-the-Counter Mean? Over-the-counter (OTC) trading takes place directly between two parties, typically through a network of brokers and dealers, rather than on a centralised exchange. It’s commonly used for products that aren’t listed on larger exchanges. How OTC Trading Differs From Exchange Trading On an exchange, prices are determined publicly through a central Continue Reading
Overnight position Definition
Written on September 3, 2026 at 5:03 pm, by wwwvftradingsc
What Is an Overnight Position? An overnight position is any trade still open at the end of the trading day, carried through to the next session rather than closed out beforehand. It remains exposed to whatever happens in the market while it’s held. Why Overnight Positions Incur Rollover Fees Holding a leveraged position overnight typically Continue Reading
Oversold Definition
Written on September 3, 2026 at 5:03 pm, by wwwvftradingsc
What Does Oversold Mean? A market or asset is described as oversold when sustained selling has pushed its price to a level considered too low relative to recent trading, raising the possibility of a rebound. How Traders Identify Oversold Conditions Oversold readings are commonly flagged using technical indicators such as the Relative Strength Index (RSI) Continue Reading
Paper trading Definition
Written on September 3, 2026 at 5:03 pm, by wwwvftradingsc
What Is Paper Trading? Paper trading is a trading simulation that offers beginners the chance to trade without risking real money. Orders are placed and tracked using live or near-live market prices, but no actual capital changes hands, allowing a trader to practise decision-making in conditions that closely resemble the real market. How Paper Trading Continue Reading
Pending order Definition
Written on September 3, 2026 at 5:03 pm, by wwwvftradingsc
What Is a Pending Order? A pending order is an instruction to buy or sell a product at a specified price in the future. Rather than executing immediately at the current market price, a pending order sits inactive until the market reaches the level you’ve set, at which point it triggers automatically. Common Types of Continue Reading
Open interest Definition
Written on September 3, 2026 at 5:03 pm, by wwwvftradingsc
What Is Open Interest? Open interest refers to the total number of contracts, such as futures or options, that remain open and have not yet been settled, closed or exercised for a particular product. It’s a running tally rather than a single day’s trading volume. How Open Interest Differs From Volume Trading volume counts how Continue Reading
Open position Definition
Written on September 3, 2026 at 5:03 pm, by wwwvftradingsc
What Is an Open Position? An open position is a trade that has been entered into the market and not yet closed. It remains “open” until the trader executes an opposing trade to exit, whether to take a profit, cut a loss, or simply close out exposure. How an Open Position Behaves While a position Continue Reading
Options Definition
Written on September 3, 2026 at 5:03 pm, by wwwvftradingsc
What Is an Option? An option is a contract that gives the buyer the right, but not the obligation, to buy or sell an underlying asset at a predetermined strike price before a set expiration date. The seller, known as the writer, sets that strike price and is obligated to honour it if the buyer Continue Reading
Non-deliverable forward Definition
Written on September 3, 2026 at 5:03 pm, by wwwvftradingsc
What Is a Non-Deliverable Forward? A non-deliverable forward (NDF) is a type of forward contract settled in cash, based on the difference between an agreed rate and the prevailing market rate at settlement, rather than through physical delivery of the underlying currency. This structure allows two parties to agree on a future exchange rate without Continue Reading
Non-directional trading Definition
Written on September 3, 2026 at 5:03 pm, by wwwvftradingsc
What Is Non-Directional Trading? Non-directional trading is an approach that aims to profit from market volatility itself, rather than betting on whether prices will rise or fall. The focus is on the size of price movement, not its direction, which sets it apart from most conventional trading approaches built around a directional view. Common Non-Directional Continue Reading
