An inventory profitability evaluation ratio that analyzes a firm's ability to turn inventory into cash above the cost of the inventory. An important tool in analyzing inventory, sales and profitability is GMROI (also known as GMROII) which stands for Gross Margin Return On Inventory Investment. The GMROI calculations assist buyers in evaluating whether a sufficient gross margin … [Read more...]
Archives for April 2010
Guppy Multiple Moving Average – GMMA
This indicator was developed by Daryl Guppy.An indicator used in technical analysis to identify changing trends. The technique consists of combining two groups of moving averages with differing time periods. It is fully explained in TREND TRADING. Captures the inferred behaviour of traders and investors by using two groups of averages. Uses fractal repetition to identify … [Read more...]
Long-Term Equity Anticipation Securities – LEAPS
Publicly traded options contracts with expiration dates that are longer than one year. Long-term Equity AnticiPation Securities (LEAPS) are long-term option contracts that allow investors to establish positions that can be maintained for a period of up to three years. CBOE lists LEAPS on Equity and Index products. Please visit the CBOE Symbol Directory for a listing of all CBOE … [Read more...]
Market versus Quote – MVQ: Definition
Market versus Quote - MVQ A comparison between the last price at which a security traded and the current bid/ask prices. Usually the best bid and ask prices will be close the market price, but occasionally the market price can differ significantly from the bid/ask, especially for an illiquid security. … [Read more...]
Long term and Short Term Trading
Financial trading uses some phrases that are unique, including the terms that describe whether a trade was entered by buying or selling: Long When a day trader is in a long trade, they have entered a trade by buying a contract (or group of shares, or forex lot), and are hoping that the price will go up. Day traders will often use the terms buy and long interchangeably. … [Read more...]