When traders or institutions deliberately push an asset’s price to trigger other traders’ stop-loss orders, causing a quick price drop (or spike) that they can profit from before the market bounces back.
Buying a call and put with same strike price and expiration date. If the stock price is close to the strike price at expiration of the options, the straddle leads to a loss.
Happens when storage space for a physical commodity becomes scarce because of oversupply, causing the cost of carry — or the expense of storing that commodity — in futures contracts to rise.
The basic market principle where prices move based on how much of something is available (supply) and how much people want it (demand). High demand with low supply pushes prices up, while low demand with high supply pushes prices down.
A swap is a deal between two parties to exchange payments over time. For example, one might pay a fixed interest rate while the other pays a variable rate,
or they might exchange payments in different currencies. It’s often used by companies or investors to manage risk or reduce borrowing costs without changing the original loan or investment.
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