T+2 Settlementmicrostructure
T+2 Settlement is the securities settlement cycle in which the transfer of securities and corresponding payment occurs two business days after the trade date.
Terms starting with “T”
50 definitions found.
T-Billfixed_income
A T-Bill, short for Treasury bill, is a short-term U.S. government debt security that matures in one year or less and is issued at a discount to par, with no periodic interest payments.
Tactical Asset Allocationrisk_portfolio
Tactical Asset Allocation (TAA) is an investment approach that temporarily deviates from a base strategic asset mix to adjust risk exposure in response to short- to medium-term market or economic conditions, within a def…
Tail Riskrisk_portfolio
Tail risk is the risk of rare, extreme losses in a portfolio that lie in the tails of the return distribution, beyond what is expected under normal market conditions.
Tangent Portfoliorisk_portfolio
The tangent portfolio is the portfolio of risky assets on the efficient frontier that, when combined with a risk-free asset, yields the Capital Market Line with the steepest slope; it has the highest Sharpe ratio for the…
Target Date Fundasset_classes
A Target Date Fund is a mutual fund or similar investment that automatically adjusts its asset allocation toward a more conservative mix as a specified target retirement year approaches.
Target Federal Funds Ratemacro
The target federal funds rate is the Federal Reserve's declared target range for the federal funds rate—the rate banks charge each other for overnight reserve balances. The Fed uses policy tools to push market rates towa…
Tax Efficiencyasset_classes
Tax efficiency is the degree to which an investment or strategy minimizes taxes relative to its pre-tax return, preserving more of the gain as after-tax return.
Tax-Managed Fundasset_classes
A tax-managed fund is a mutual fund or exchange-traded fund that uses tax-aware investment techniques to minimize taxable distributions to shareholders, typically through low turnover and tax-loss harvesting.
Taxable Bond Fundasset_classes
A taxable bond fund is a mutual fund or ETF that primarily invests in bonds whose interest is subject to federal income tax. The fund's income distributions are generally taxable to shareholders, and may be taxed at ordi…
Taxable Equivalent Yieldfixed_income
Taxable Equivalent Yield (TEY) is the yield a taxable security would need to offer to produce the same after-tax return as a tax-exempt security, given an investor's marginal tax rate.
Taylor Rulemacro
A macroeconomic rule-of-thumb for setting a central bank's nominal policy rate based on deviations of inflation from the target and the output gap.
Tenorderivatives
Tenor in derivatives is the length of time until a contract's expiration or maturity, i.e., the instrument's duration.
Term Premiumfixed_income
The term premium is the extra expected return that investors require for holding longer-term bonds. It is the portion of a long-term bond's yield that compensates for the risk and uncertainty of future interest rates bey…
Term Sheetcorporate
A term sheet is a non-binding document that outlines the principal terms and conditions of a proposed investment or acquisition, used to guide negotiations toward a final agreement.
Thetaderivatives
Theta is the rate at which an option's price changes as time passes, holding all other factors constant; it is one of the option Greeks.
Theta Decayderivatives
Theta decay is the rate at which an option's time value erodes as the expiration date approaches, with other factors unchanged. It is a measure of time decay in option pricing.
Three Black Crowstechnical
Three Black Crows is a candlestick pattern consisting of three consecutive long-bodied candles that close lower than the previous day's close, appearing after an uptrend. The pattern signals a potential downward reversal…
Three White Soldierstechnical
A Three White Soldiers is a candlestick chart pattern consisting of three consecutive long-bodied candles that close higher than the prior candle, typically with little or no lower shadows, signaling renewed upward price…
Time Valuederivatives
Time Value is the portion of an option's price that reflects the potential for value to change before expiration, beyond its current intrinsic value.
Time-In-Force (TIF)microstructure
Time-In-Force (TIF) is an instruction attached to an order that defines how long the order remains active before it is executed or expires.
Tokenizationasset_classes
The process of representing ownership rights in real-world or financial assets as digital tokens on a blockchain or distributed ledger.
Total Assetsfundamental
Total assets are the sum of all resources a company controls that have economic value, as reported on the balance sheet. They include current assets and noncurrent assets.
Total Returnfixed_income
Total return is the overall percentage change in an investment's value over a defined period, combining income (for fixed income, coupons or interest) and any price movement, with distributions assumed reinvested.
Total Return Swapderivatives
Total Return Swap (TRS) is a bilateral derivative contract in which one party receives the total return of a reference asset (income plus price change) and pays a financing cost to the other party. No ownership of the re…
Tracking Errorasset_classes
Tracking error is a measure of how closely a portfolio's returns follow its benchmark, typically calculated as the standard deviation of the difference between the portfolio and benchmark returns.
Trade Confirmationmicrostructure
A trade confirmation is a formal notice that records the details of an executed transaction in a security, including the instrument, quantity, execution price, trade date, and the parties involved.
Trade Matchingmicrostructure
Trade matching is the process by which a trading venue pairs compatible bid and ask orders to produce matched trades and determine execution prices. It uses a matching engine that applies venue-defined rules, such as pri…
Trade Tapemicrostructure
The trade tape is the stream of real-time (or delayed) prints of executed trades, showing price, size, and time for each trade as it occurs.
Trade Through Rulemicrostructure
The Trade Through Rule, part of Regulation NMS (Reg NMS) and its Order Protection Rule, prohibits trades from executing at prices worse than the best displayed price available across all protected venues (the NBBO) when …
Trade-Weighted U.S. Dollar Indexmacro
A trade-weighted U.S. dollar index measures the U.S. dollar’s value against a basket of currencies weighted by the share of U.S. trade with each country. It provides a broad gauge of the dollar’s external value beyond an…
Trailing Stop Ordermicrostructure
A trailing stop order is a stop order that automatically adjusts its stop price as the market price moves, maintaining a fixed distance from the price to protect gains while allowing upside.
Treasury Auctionfixed_income
A Treasury auction is the government sale of newly issued U.S. Treasury securities conducted by the U.S. Department of the Treasury, in which bids from market participants determine the issue's price and yield.
Treasury Billfixed_income
A Treasury bill (T-bill) is a short-term U.S. government debt security issued by the U.S. Department of the Treasury. It matures at par value and is sold at a discount to its face value.
Treasury Bondfixed_income
A U.S. Treasury Bond is a government debt security issued by the U.S. Department of the Treasury with a fixed coupon paid semiannually and a maturity of 20 or 30 years, with the principal repaid at maturity.
Treasury Inflation-Protected Securitiesfixed_income
Treasury Inflation-Protected Securities (TIPS) are U.S. government bonds whose principal value is adjusted for changes in the Consumer Price Index for All Urban Consumers (CPI-U), with semiannual coupon payments based on…
Treasury Inflation-Protected Securities (TIPS)fixed_income
Treasury Inflation-Protected Securities (TIPS) are U.S. government bonds whose principal is adjusted for inflation according to the Consumer Price Index for All Urban Consumers (CPI-U); coupon payments are calculated on …
Treasury Notefixed_income
A Treasury Note (T-Note) is a U.S. government debt security with a fixed coupon and a maturity of two to ten years. It pays semiannual interest and returns the principal at maturity.
Treasury Stockfundamental
Treasury stock refers to shares that a company has issued and later repurchased, and which are held in the company's treasury; these shares are considered issued but not outstanding and do not have voting rights or right…
Treasury Yieldmacro
The Treasury yield is the annualized return on U.S. Treasury securities, expressed as the yield to maturity for a given maturity (e.g., 2-year, 10-year). It serves as a benchmark for interest rates and reflects current m…
Trend Linetechnical
A trend line is a straight line drawn on a price chart that connects two or more price highs or lows to illustrate the prevailing direction of prices over a selected period.
Treynor Ratiorisk_portfolio
The Treynor Ratio (Treynor Measure) is a risk-adjusted performance metric that measures excess return earned per unit of systematic risk, defined as (Rp − Rf) / beta_p, where Rp is the portfolio return, Rf is the risk-fr…
Triangle Patterntechnical
A triangle pattern is a technical chart pattern formed when price action converges between two trendlines that meet to form a triangle. It signals a potential breakout as volatility narrows and price moves within a shrin…
Triple Bottomtechnical
Triple Bottom is a technical analysis chart pattern consisting of three roughly equal lows separated by two intervening highs, potentially signaling a reversal from a downtrend.
Triple Net Leaseasset_classes
A triple net lease (NNN) is a commercial lease in which the tenant pays base rent plus property taxes, insurance, and maintenance, transferring most operating expenses from the landlord to the tenant.
Triple Toptechnical
A chart pattern in technical analysis where the price forms three roughly equal highs with two intervening lows, often completed when the price breaks below the support level defined by the lows.
Tweezer Bottomtechnical
A Tweezer Bottom is a two-candle candlestick pattern in which two consecutive candles have nearly identical lower prices, forming a 'tweezer' bottom; the pattern is interpreted as a potential reversal of a downtrend when…
Tweezer Bottomstechnical
Tweezer Bottoms are a candlestick pattern formed by two consecutive candles with the same or very similar lows, indicating a potential upward reversal after a downtrend.
Tweezer Toptechnical
A tweezer top is a two-candle candlestick pattern where the highs of two consecutive candles are at about the same level, indicating resistance and a possible pause or reversal of the prior up-move.
Tweezer Topstechnical
A two-candle candlestick pattern in which the highs are equal or nearly equal, signaling a potential top after an uptrend.