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術語交易指交易者運用預定義的術語體系、概念框架及行業指標進行決策的策略類型,涵蓋專業術語、金融指標與分析工具,助您高效駕馭市場。

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Drawdown

The peak-to-trough decline in the value of an investment or trading account.

Dry powder

Dry powder are cash or cash-equivalent assets that are in reserve and are deliberately undeployed. The word comes from the ancient military art of storing gunpowder in a dry place so it would be ready to be fired when the time came. In the financial sense, the meaning is essentially the same.

Dry powder is capital that is yet to be put to work, but is held in reserve awaiting the appropriate opportunity. When applied to private equity and venture capital, it specifically refers to committed but uncalled capital; money that the investors have promised to a fund, but such that the fund manager has not yet drawn down or invested.

In a broader market sense, it refers to any investor or institution that has a lot of cash sitting idle while it awaits an opportunity to improve or a valuation that looks more appealing.

The dry powder is, in most cases, a strategic decision rather than an indication of indecisiveness.

Example: In early 2022, a private equity fund completes a $2 billion raise, only to see markets begin to sell off. Rather than rushing to invest the capital in an overheated market, the manager withholds much of it.

By the end of 2023, there will be considerable compression in valuations. The dry powder that appeared to be a moment of hesitation turns out to be positioning; the fund can now purchase assets at a price that would not have been available a year ago.

Due diligence

The process of investigating and analysing a company or investment opportunity before making a decision to invest.

Dump

In crypto markets, a dump occurs when a large volume of selling occurs rapidly, causing the price of an asset to fall significantly in a short period. It can happen organically, with sentiment shifting suddenly.

But the term is most often used to describe deliberate or coordinated selling, most infamously in pump-and-dump schemes. Here, a group artificially inflates a token’s price through hype and coordinated buying, and then sells their holdings into the ensuing demand, leaving late buyers holding a collapsing asset.

Dumps can also happen when one big holder, sometimes known as a whale, sells a huge position into a thin market, where there isn’t enough buying activity to soak up the volume without the price falling rapidly lower.

Example: A little-known token is heavily advertised across social media over the weekend. Retail shoppers jumped in, pushing the price up 400% in 48 hours. Early holders will start selling into the enthusiasm on Monday morning.

Within hours, the price has given up most of its gains, trading volume dries up, and the late-arriving purchasers are left nursing large losses with no visible way out.

Durable Goods Orders

Durable Goods Orders is a monthly US economic report measuring the value of new orders received by manufacturers for goods that will last three years or more. These goods include airplanes, machinery, appliances, and defense equipment. These are big-ticket expenditures that corporations and governments are making a serious commitment to, and the data is viewed as a proxy for confidence in the economic forecast.

Strong orders indicate businesses are expanding and investing. Weak orders mean they are pulling back and waiting. The headline number can be very variable month-to-month, largely because aircraft orders are huge and lumpy – one big Boeing deal can sway the whole amount.

As such, analysts tend to pay more attention to the ex-transportation and core capital goods orders numbers, which remove the noise and give a cleaner read on underlying company investment.

Example: A month of considerably higher durable goods orders, spurred by a spike in core capital goods, usually lifts equity markets and the dollar; it implies that corporations are investing with confidence. A disappointing result, especially in core orders, raises concerns that the economic upswing is losing steam.

Duration

The measure of a bond’s sensitivity to changes in interest rates.

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