Glossary - S

SAVINGS
Saving is income not spent. Sometimes referred to as deferred consumption.
 
SCALPER
A short term trader who trades frequently throughout the day in order to profit from small price changes.
 
SECURITIES AND EXCHANGE COMMISSION (SEC)
The SEC is an agency of the US government set up to enforce the government's laws regulating the securities industry, the stock and options exchanges, and other activities and organizations, including the electronic securities markets.
 
SEQUESTER
The sequester ensures that the Federal government does not spend more than the agreed federal budget. Sequestration means setting a limit on the amount of government spending.  It affects all federal departments and projects by an equal percentage. The amount exceeding the budget limit is held back by the Treasury and not transferred to the affected departments and projects.
 
SHANGHAI FUTURES EXCHANGE (SHFE)
The Shanghai Futures Exchange (SHFE) was formed from the amalgamation of the Shanghai Metal Exchange, Shanghai Foodstuffs Commodity Exchange, and the Shanghai Commodity Exchange in December 1999.
It currently trades futures contracts in copper, aluminium, zinc, natural rubber, fuel oil, and gold.
 
SHAREHOLDER
A shareholder is an individual or institution that legally owns one or more shares in a public or private corporation.
 
SHARES
A share is a unit of account for various financial instruments including. The common feature of all shares is that the owner is an equity participant in the company he holds shares in.
 
SHORT
One who has sold with the view that prices will fall.
 
SHORT SQUEEZE
A situation in which a lack of supply and an excess demand for a traded stock forces the price upward. During a short squeeze, individuals holding short positions are typically forced to purchase shares in situations where the price increases rapidly, in order to exit their short position. Short squeezes occur more often in smaller-cap stocks with small floats or in generally thin markets.
 
SIMPLE MOVING AVERAGE (SMA)
A simple, or arithmetic, moving average that is calculated by adding the closing price of the security for a number of time periods and then dividing this total by the number of time periods. Short-term averages respond quickly to changes in the price of the underlying, while long-term averages are slow to react.
 
SLIPPAGE
Slippage is the difference between the level of a stop order and the actual price at which it is filled/executed.
 
SPREAD
The spread is the difference between the bid price and the ask price.
 
SPOT PRICE
Price of a commodity, a security or a currency that is quoted for immediate (spot) settlement (either payment and/or delivery).
 
STAGFLATION
Stagflation is a situation in which the inflation rate is high and the economic growth rate slows down and unemployment remains high.
 
STAKE
The amount of money that you specify and which you wish to risk per Tick movement on your chosen financial market.
 
STOCHASTIC OSCILLATOR
This is a momentum indicator that uses support and resistance levels. This method attempts to predict price turning points by comparing the closing price of a security to its price range.
 
STOP LOSS
A trade order which automatically closes an open position at a specific price in order to prevent losses in case the market moves against your position.
 
STOP ORDER
An order to buy or sell a security when its price surpasses a particular point, thus ensuring a greater probability of achieving a predetermined entry or exit price, limiting the investor's loss or locking in his or her profit. Once the price surpasses the predefined entry/exit point, the stop order becomes a market order.
 
STOPPED OUT
When the market hits the specified stop-loss placed by the trader.
 
SUPPORT
Term used to describe the bottom of a trading range.
 
SWING TRADE
Defined as a speculative trade in financial markets whereby instruments such as stocks, indexes, bonds, currencies, or commodities are repeatedly bought or sold at or near the end of up or down price swings caused by price volatility.