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Technical analysis |
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A method of predicting future security price movements based on the study
of historical market data such as (among others) the historical prices of
the security, trading volume, open interest, the relation of advancing issues
to declining issues, and short selling volume. |
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Theoretical value |
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The estimated value of an option derived from a mathematical model.
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Theta |
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A measure of the rate of change in an option's theoretical value for a one-unit
change in time remaining until expiry. (See Time decay.) |
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Tick |
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The smallest price fluctuation allowed in trading an asset. |
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Time decay |
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A term used to describe how the theoretical value of an option "erodes"
or reduces with the passage of time. Time decay is specifically quantified
by theta. |
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Time spread |
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An option strategy which generally involves the purchase of a farther-term
option (call or put) and the writing of an equal number of nearer-term options
of the same type and strike price. Example: buying 1 XYZ May 60 call (far-term
portion of the spread) and writing 1 XYZ March 60 call (near-term portion
of the spread). Also known as calendar spread or horizontal spread.
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Time value |
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The portion of the option premium that is attributable to the amount of
time remaining until the expiration of the option contract. Time value is
the difference between the options price and its intrinsic value.
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Timely disclosure policy |
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This policy requires each listed company to publicly disclose material information
in a timely manner. |
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Toronto Stock Exchange 300 Composite index®(TSE 300) |
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This index is a benchmark used to measure the price performance of the broad
Canadian equity market. |
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Trade |
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A securities transaction. |
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Trading halt |
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See Halt. |
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Trading Unit |
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The amount of the underlying asset covered by the derivative contract. For
example, this is 100 shares for one equity option unless adjusted for a
special event, such as a stock split or a stock dividend, or otherwise deemed
to be special by the listing exchange. |
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Transaction costs |
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All of the charges associated with executing a trade and maintaining a position.
These include brokerage commissions, fees for exercise and/or assignment,
exchange fees, CVMQ fees, and margin interest. In academic studies, the
spread between bid and ask is taken into account as a transaction cost.
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Treasury bill (T-bill) |
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A short-term government debt. Treasury bills bear no interest, but are sold
at a discount. The difference between the discount price and par value is
the return to be received by the investor. |
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Trust |
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An instrument placing ownership of property in the name of one person, called
a trustee, to be held for the use and benefit of some other person, called
the beneficiary. |
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Trustee |
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For bondholders, usually a trust company appointed by the issuer to protect
the security behind the bonds and to make certain that all covenants of
the trust deed relating to the bonds are honoured. |
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Two way security |
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A security, usually a debenture or preferred share, which is convertible
into or exchangeable for another security (usually common shares) of the
same company. |
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TSE |
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Toronto Stock Exchange. |
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Type |
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The classification of an option contract as either a put or a call.
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