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The Rise Of STARTRADER

One Of The
World’s Fastest Growing Brokerage

The Rise Of STARTRADER

One Of The
World’s Fastest Growing Brokerage

Trading Glossary

Glossary trade refers to a type of trading strategy where traders use a predefined set of terms, definitions, or concepts to make informed decisions. It often involves industry-specific jargon, financial metrics, and analytical tools to navigate markets effectively.

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Variation margin

Variation margin is money added to or removed from a trading account as the value of an open futures or derivatives position changes.

When the position is opened, the trader first deposits initial margin. This is money held as security. The position is then valued again, usually at the end of each trading day. If it has lost $600, the trader may need to pay $600 in variation margin. The other side of the trade receives the matching gain.

This process happens while the position is still open. It prevents unpaid losses from building up until the contract ends and helps the clearing house manage the risk between both sides.

Venezuelan Bolivar (VEF)

VEF was the currency code for the Venezuelan bolivar fuerte, or strong bolivar. It was introduced in 2008 after Venezuela removed three zeros from its previous currency. This meant that 1,000 old bolivars became one bolivar fuerte.

The change made prices shorter and easier to write, but it did not solve the country’s inflation problem. As prices continued to rise rapidly, the currency lost much of its buying power.

In 2018, Venezuela replaced VEF with a new version of the bolivar carrying the code VES. One VES was equal to 100,000 VEF. VEF is therefore a historical currency code and may still appear in older records or charts.

Venture capital

Capital provided to new or growing companies by investors in exchange for an ownership stake.

Venture debt

Debt financing provided to early-stage or growing companies that do not yet have the creditworthiness to secure traditional loans.

Venture exchange

A stock exchange that specialises in listing and trading shares of early-stage or growing companies.

Vertical spread

A type of options trading strategy involving the simultaneous purchase and sale of options with different strike prices but the same expiration date.

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