Not-Held Order

What is a ‘Not-Held Order’ A not-held order is a market or limit order that gives the broker or floor trader both time and price discretion to get the best possible price.  BREAKING DOWN ‘Not-Held Order’ An investor placing a not-held order exhibits an excellent faith that the floor trader can attain a better market … Read more


DEFINITION of ‘Recharacterization’ Recharacterization is the reversal of an IRA conversion, such as from a Roth IRA back to a traditional IRA, generally to achieve better tax treatment. Recharacterizations are mostly performed after a conversion from a traditional Individual Retirement Account (IRA) to a Roth IRA. Such a conversion, also known as a “rollover,” may … Read more

Continuous Compounding

Loading the player… What is ‘Continuous Compounding’ Continuous compounding is the mathematical limit that compound interest can reach if it’s calculated and reinvested into an account’s balance over a theoretically infinite number of periods. While this is not possible in practice, the concept of continuously compounded interest is important in finance. It is an extreme case of … Read more

Inchmaree Clause

What is ‘Inchmaree Clause’ An Inchmaree clause is found in maritime insurance policies and provides coverage for the ship’s hull from loss or damage caused by machinery. The Inchmaree clause, also called the negligence clause, covers damage that is caused by negligence of ship personnel, such as engineers and captains, when navigating. It is a type of … Read more

What are the differences between divergence and convergence?

A: “Convergence” generally means coming together, and “divergence” generally means moving apart. In the world of finance and trading, convergence and divergence are used to describe the directional relationship of two trends, prices or indicators. Convergence Most traders refer to a convergence when describing the price action of a futures contract. Here, convergence describes the … Read more

Growth Rates

Loading the player… What are ‘Growth Rates’ Growth rates refer to the percentage change of a specific variable within a specific time period and given a certain context. For investors, growth rates typically represent the compounded annualized rate of growth of a company’s revenues, earnings, dividends or even macro concepts such as gross domestic product (GDP) … Read more