Derivative

A financial instrument whose value is based on the value of an underlying asset, index, or rate. Examples include options, futures, and swaps.

A risk management strategy that involves spreading investments across various assets to reduce exposure to any single asset or risk.

A portion of a company’s earnings paid to shareholders, typically in cash or additional shares.

The practice of buying and selling financial instruments within the same trading day, often using technical analysis and high leverage.

A peak-to-trough decline during a specific period for an investment, trading account, or fund. It’s used to measure the risk of a strategy.