A double diagonal trade is a neutral trade, with a small chance for profit and an equivalent small chance for loss. If you're familiar with options trades, the double diagonal is similar to a Butterfly spread except of that it is diagonal. The most challenging aspect of the trade is finding a good discount broker, since the trade requires four distinct transactions. Define a … [Read more...]
capitalization and tailgating
Tailgating When a broker or advisor buys or sells a security for a client(s) and then immediately makes the same transaction in his or her own account. This is not illegal like front running, but it is not looked upon favorably because the broker is mostly likely placing a trade for his or her own account based on what the client knows (like inside information). Sometimes … [Read more...]