# Untitled

a guest
Mar 23rd, 2019
117
Never
Not a member of Pastebin yet? Sign Up, it unlocks many cool features!
1. https://www.interactivebrokers.com/en/software/tws/twsguide.htm#ordertypestop.htm%3FTocPath%3DOrder%2520Types%7C_____0
2.
3. ORDER ENTRY
4.
5. Shortable stock: stock which is in the securities availability of Interactive Brokers (IBKR) for shorting, i.e. is may be borrowed to open
6.
7. a short position.
8.
9. Option chain: a matrix listing for a single underlying asset showing all puts, calls, strike prices, and pricing information for a given
10.
11. maturity period. The majority of online brokers and stock trading platforms display option quotes in the form of an option chain using
12.
13. real-time or delayed data. The chain display allows quick scanning of activity, open interest, and price changes. Traders can hone in on
14.
15. the specific options required to meet a particular options strategy.
16.
17. Option features:
18.
19. - implied volatility: as we know, volatility is the statistical measure of the dispersion of returns for a given security or market index.
20.
21. In most cases, the higher the volatility, the riskier the security; for an option, it is that value of the volatility of the underlying
22.
23. instrument which, when input in an option pricing model (such as Black–Scholes) will return a theoretical value equal to the current
24.
25. market price of the option; theoretically, a higher value for volatility results in a higher theoretical value of the option
26.
27. -open interest: number of currently open options contracts; any put or call is open until the position is closed or settled
28.
29. -volume: number of traded option position per unit of time, usually day
30.
32. If an investor looks at a computer screen for a quote on the stock of XYZ, it might look something like this:
33.
34. Last: 20.01 Bid: 20 Ask: 20.25 Bid Size: 1200 Ask Size: 500
35.
36. The translation: the stock of XYZ is being bid at $20 a share and offered at$20.25 per share. There are 1200 shares bid for and 500
37.
38. shares offered [note: some brokers may display these size numbers in hundreds, so 12 and 5 in the above example instead of 1200 and 500].
39.
40. If you are looking to sell stock, now you know there is a firm willing to pay (that's the bid side of the market) $20 for your stock, and 41. 42. that you could sell at least 1200 shares of stock at that price. Those are the two parts of the bid side of a market on a stock: the price 43. 44. and the quantity of shares at that price. 45. 46. If you are looking to buy XYZ stock, you would have to pay$20.25 and could buy at least 500 shares of stock. Again, there are two parts
47.
48. to the ask side of the market: the price at which you can buy stock and the amount of stock you can buy.
49.
50. Usually the displayed bid is a maximum - the highest bid is the most you can get by selling a specific options. Dually, the ask is a
51.
52. minimum: if you want to buy the specific option it cannot be less than the price.
53.
54. -strike: the strike price of the option contract, so the price at which the option may be exercised; so:
55. \call: if the strike is 60EUR, it means that the buyer can buy the underlying for 60EUR exactly, at the expiration date (european) or
56.
57. anytime up until the expiration (american)
58. \put: for 60EUR, it means that the seller may sell the underlying for 60EUR exactly, at expiration (eur) or before that (us)
59.
60. -adaptive order: a buy/sell commanded by a particular dynamic strategy; ibkr offers:
61.
62. \MidPrice order is designed to split the difference between the bid and ask prices, and fill at the current midpoint of the NBBO or better
63.
64. (the National Best Bid and Offer is the guarantee by SEC that a broker offers always the lowest and highest buy and sell price
65.
66. respectively); "better" can be fixed by a threshold; the order is routed to a specific exchange
67.
68. \IBKR adaptive: particularly useful when the bid-ask spread is wide, it does not go directly to a market order price but rather starts in
69.
70. between bid and ask and seeks for increasingly better prices according to a patience user-defined parameter
71.
72. -limit order: executes at the specified price or better
73.
74. -market order: executes now, at the best available price now; not suggested; not to be placed outside market hours because if something
75.
76. happens overnight price may freefall or explode
77.
78. -pegged order: executes at a specified market or index (e.g. NBBO) value plus/minus some offset
79.
80. -trail limit: lets specify a limit on the possible loss without limiting the possible gain
81.
82. ...and... many more!
83.
84.
85. GRAPHS:
86.
87. -candlestick: each candle is a time unit boxplot, where the following prices are shown:
88. \open(ing) price
89. \clos(ing) prince
90. \high(est) price
91. \low(est) price
92. if open > close then the body bar is red, if open < close then it is green, yellow otherwise
93.
94. TICK:
95.
96. -EPS (earnings per share): the portion of a company's profit allocated to each share of common stock; net income divided by available
97.
98. shares; the higher the value the higher the company profitability
99.
100. -PE ratio (price-to-earnings ratio): current share price relative to earnings per share; market value over EPS; high PE: stock price is
101.
102. high relative to earnings which may mean overvalued; low PE: price low relative to earnings, possibly undervalued
103.
104. -market cap: total value of the outstanding shares
105.
106. -PB ratio (price-to-book ratio): market price per share divided by book value per share; a low PB might suggest that a company is
107.
108. undervalued but this should be benchmarked on some industry-specific PB ratio
109.
111.
112. -hedge:
113.
114. \ beta: the beta is a coefficient defined as ratio between:
115. covariance between an individual stock return and overall market
116. variance of the overall market
117. if it is 1: the stock moves with the market
118. -1: it moves in the opposite way
119. beta hedging simply means: for the buy X buying some Y too such that their beta(X,Y) is opposite
120.
121. \delta:
122.
123. \fx:
RAW Paste Data