M-Squaredrisk_portfolio
M-Squared (M^2) is a risk-adjusted performance metric that translates a portfolio's Sharpe ratio into the return of a hypothetical portfolio with the same standard deviation as a chosen benchmark, typically the market.
Terms starting with “M”
61 definitions found.
Macaulay Durationfixed_income
Macaulay duration is the weighted-average time to a bond's cash flows, expressed in years, with weights equal to the present value of each cash flow divided by the bond's price.
MACD Crossovertechnical
A MACD crossover occurs when the MACD line crosses the signal line, signaling a change in momentum. MACD stands for Moving Average Convergence Divergence, a momentum oscillator that compares short-term and longer-term mo…
MACD Histogramtechnical
The MACD Histogram is a bar chart showing the difference between the MACD line and its signal line. The MACD line is the difference between a fast and a slow exponential moving average, while the signal line is a moving …
MACD Signal Linetechnical
The MACD Signal Line is the nine-period exponential moving average (EMA) of the MACD line, where MACD stands for Moving Average Convergence Divergence. It is used with the MACD line to identify changes in momentum via cr…
Maintenance Marginderivatives
The minimum level of equity that must be maintained in a margin account to support a derivatives position; if equity falls below this threshold, a margin call may be issued.
Marginderivatives
In derivatives trading, margin is the collateral a trader must post to open and maintain a contract. It is intended to cover potential losses and ensure performance under the contract.
Mark To Marketderivatives
Mark to market (MTM) is the daily revaluation of open derivative positions to reflect current market prices, with resulting gains and losses credited or debited to the trader's margin account.
Market By Level (MBL)microstructure
Market By Level (MBL) is a market data view that shows the current depth of the order book broken down by price level, listing the total size available at each level and, in some feeds, the number of resting orders at th…
Market By Price (MBP)microstructure
Market By Price (MBP) is a market data feed that displays the depth of the order book organized by price levels, showing the total quantity available at each price rather than individual orders. It is used to gauge liqui…
Market Depthmicrostructure
Market depth refers to the quantity of buy and sell orders at various price levels for a security, as displayed in the order book beyond the best bid and best ask. It provides a view of available liquidity across prices …
Market Makermicrostructure
A market maker is a firm or individual that quotes both bid and ask prices for a security and is prepared to transact with counterparties, thereby providing liquidity. They typically aim to profit from the bid-ask spread…
Market Makingmicrostructure
Market making is the practice of a market participant that provides two-sided quotes (a bid and an ask) for a security or other instrument to supply liquidity and facilitate trading on an exchange or venue.
Market On Close (MOC)microstructure
Market On Close (MOC) is an order instruction to be executed at the close of the trading session, typically through the exchange's closing auction, at the closing price determined for that session.
Market On Open (MOO)microstructure
Market On Open (MOO) is an order instruction to execute at the market's opening price, typically by participating in the exchange's opening auction.
Market Ordermicrostructure
A market order is an order to transact immediately at the best available price. It does not specify a price and is designed to execute quickly.
Market Participantmicrostructure
A market participant is any individual or institution that engages in trading securities or providing liquidity in securities markets.
Marubozutechnical
Marubozu is a candlestick with no upper or lower shadow, where the open and close prices span the period's high-low range; there are two forms: long white Marubozu and long black Marubozu.
Matching Principlefundamental
The Matching Principle is an accounting principle under Generally Accepted Accounting Principles (GAAP) that requires expenses to be recognized in the same period as the revenues they help generate.
Material Informationregulation
Material information is information a reasonable investor would consider important when evaluating a security. Its materiality means disclosure could influence the security's price or an investor's assessment.
Material Nonpublic Informationregulation
Material Nonpublic Information (MNPI) is information about a company or its securities that a reasonable investor would consider important in making an investment decision and that has not been publicly disclosed.
Materialityfundamental
Materiality is the threshold at which omitting or misstating information could influence the decisions of users relying on financial statements.
Maturityfixed_income
Maturity is the date on which the principal of a fixed-income security is repaid to the holder. It also refers to the length of time remaining until that date.
Maturity Datefixed_income
In fixed income, the maturity date is the date on which the issuer is obligated to repay the bond's face value (par value) to the holder and terminate the contract.
Maximum Drawdownrisk_portfolio
Maximum drawdown (MDD) is the largest peak-to-trough decline in a portfolio's value over a defined period, measured from a high point to the lowest subsequent value, usually expressed as a percentage or currency.
Mean Reversionrisk_portfolio
Mean reversion is the tendency for a financial variable to move back toward its historical average over time. In finance, prices or returns that depart from long-run norms are described as exhibiting mean-reverting behav…
Mean-Variance Optimizationrisk_portfolio
Mean-Variance Optimization (MVO) is a mathematical method that selects asset weights to minimize portfolio variance for a given target expected return (or to maximize expected return for a given level of risk) using esti…
Mental Accountingbehavioral
Mental accounting is a behavioral finance concept describing how people categorize funds into separate 'accounts' in their minds and apply different rules to each, rather than evaluating money as a single, fungible resou…
Mergercorporate
A merger is a corporate action where two or more companies combine to form a single legal entity, often by one company absorbing another or by both forming a new entity.
Mergers and Acquisitionscorporate
Mergers and acquisitions (M&A) is a corporate strategy that involves combining two companies through a merger or through an acquisition of one company by another.
Mergers and Acquisitions (M&A)corporate
Mergers and Acquisitions (M&A) are corporate transactions in which two companies combine to form a single entity (merger) or one company purchases another (acquisition). The term covers the negotiations, structures, and …
Mezzanine Financingcorporate
Mezzanine financing is a form of subordinated debt used to fund growth or acquisitions. It sits between senior debt and equity in a company's capital structure and often includes higher interest and options to convert to…
Midpoint Pegmicrostructure
A midpoint peg is a pegged order that references the mid-point of the National Best Bid and Offer (NBBO) and moves with quotes to seek execution near the current mid-point.
Minimum Volatilitystyles
A style of investing that aims to reduce portfolio risk by tilting toward assets with lower price volatility relative to a market benchmark. It is commonly implemented via rules-based index construction or portfolio opti…
Modern Portfolio Theoryrisk_portfolio
Modern Portfolio Theory (MPT) is a framework for constructing portfolios that aim to maximize expected return for a given level of risk, or minimize risk for a given level of expected return, through diversification and …
Modified Durationfixed_income
Modified duration is a measure of a bond's price sensitivity to parallel changes in interest rates; it estimates the percentage change in price for a 1 percentage-point change in yield, using the bond's Macaulay duration…
Momentumtechnical
Momentum is a measure of the rate and magnitude of a security's price changes over a specified look-back period.
Momentum Factorstyles
The momentum factor is a style factor that captures the tendency for assets with strong recent price performance to continue performing well in the near term. In practice, momentum is typically measured by past returns o…
Momentum Indicatortechnical
A momentum indicator is a technical analysis tool that measures the rate or speed of price changes by comparing the current price to prices from a prior period.
Momentum Premiumstyles
Momentum premium is the empirical tendency for assets with strong recent performance to continue outperforming in the near term, reflecting the momentum factor in asset pricing. It is a concept used in factor investing a…
Momentum Tiltstyles
Momentum Tilt is an investment style that tilts a portfolio toward assets that have demonstrated stronger price momentum over a recent lookback period, typically quantified by trailing returns or other momentum measures.
Monetary Basemacro
The monetary base is the total amount of currency in circulation plus reserves held by banks at the central bank.
Monetary Policymacro
Monetary policy is the set of actions by a country's central bank to influence money supply and short-term interest rates in pursuit of macroeconomic goals such as price stability and maximum employment.
Money Flow Index (MFI)technical
The Money Flow Index (MFI) is a momentum oscillator that uses price and volume to measure buying and selling pressure, producing a value on a 0 to 100 scale.
Money Market Fundasset_classes
A money market fund is a mutual fund that pools investors' money to buy short-term, high-quality debt instruments, with the goal of providing liquidity and preserving capital.
Money Supplymacro
The money supply is the total amount of monetary assets available in an economy at a given time, encompassing currency in circulation and various types of deposits and near-money assets.
Money Supply (M2)macro
Money Supply, commonly referred to as M2, is a broad measure of the money available in the economy that includes cash and checking deposits (M1) plus near-money assets such as savings deposits, money market deposit accou…
Moneynessderivatives
Moneyness describes whether an option would have intrinsic value if exercised today, based on the relationship between the underlying price and the option's strike price.
Monte Carlo Simulationrisk_portfolio
A Monte Carlo simulation is a computerized method that uses random sampling to estimate the distribution of possible outcomes for a model. It is commonly used to assess risk and uncertainty in portfolios.
Moody's Ratingfixed_income
Moody's Rating is a credit rating assigned by Moody's Investors Service that assesses the credit quality of issuers or debt securities, signaling the relative risk of default from highest quality (Aaa) to lowest (C).