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What does latency mean in trading?
In trading, latency refers to the time delay between the moment a trader places an order and when that order is executed on the exchange. This delay can be due to various factors including internet speeds, processing times, and system performance. ...
What does assignment mean in options?
In options trading, "assignment" refers to the obligation of the option seller to fulfil the terms of the option contract. For call options, this means the seller will have to sell the underlying asset at the strike price. Conversely, for put ...
What does T+2 settlement mean?
The 'T+2' settlement represents the timeline for completing a security transaction. Here’s a breakdown: T (Transaction Day): The day the trade takes place. T+2: Refers to the fact that the finalisation of the transaction – both payment and receipt of ...
What does 'X' settlement or cash settlement mean in trading?
In trading, settlement refers to the process by which securities are transferred from the seller to the buyer. However, there are times when the delivery of these securities faces disruptions. Here's a look at how 'X' or Cash Settlement comes into ...
What does 'Additional Lumpsum' mean in Mutual Fund investments?
A lumpsum investment pertains to a one-time commitment of funds into a specific mutual fund scheme. Essentially, when you invest a certain sum all at once, that's termed as a 'lumpsum' investment. Now, an 'additional lumpsum' is when you decide to ...