Cyber*School

There are basically two types of Stop Orders: Stop limit orders and stop market orders. Stop orders are placed in the general order book after exceeding or falling below the desired stop limit as a market order or a limit order. Stop orders are additional instruments to limit risks.

There are basically two types of Stop Orders: Stop limit orders and stop market orders. Stop orders are placed in the general order book as a market order or a limit order if the spot rate exceedes or falls below below the desired stop limit. Stop orders are additional instruments to limit risks.

A stop-loss limit defines the maximum loss that a bank is willing to accept for a position. If the stop-loss limit is reached, the dealer must close the position immediately, and thus realize the loss.

A series of market indexes that are representative of the European and global markets. These indexes cover a wide range of market segments including the broad market, blue chips, individual sectors and global indexes. While there are global STOXX indexes, the majority of the focus is placed on the European market. The STOXX indexes were created out of a venture between Dow Jones, Deutsche Boerse AG, and the SWX group. These indexes are tradable on the futures and options market and are also used as benchmarks for funds that trade in the European and global markets. The Dow Jones Industrial Average in the U.S. is similar to the Dow Jones STOXX 50 Index.

options strategy long straddle: purchase of a call and a put option with identical strikes short straddle: sale of a call and a put option with identical strikes (usually at the money)

v. fixed rate bond

an interbank-deposit with a straight maturity, i.e. with entire months

options strategy long strangle: purchase of a call and a put with different strikes, both out of the money short strangle: sale of a call and a put with different strikes, both out of the money

stress testing methods are used in order to check the reliability of value at risk calculation methods (e.g. variance/covariance method, monte carlo simulation, historical simulition) in extreme market conditions stress testing methods as well as back testing methods are essential supplements to value at risk models

A simulation technique used on asset and liability portfolios to determine their reactions to different financial situations. Stress tests are also used to gauge how certain stressors will affect a company or industry. They are usually computer-generated simulation models that test hypothetical scenarios. Stress testing is a useful method for determining how a portfolio will fare during a period of financial crisis. The Monte Carlo simulation is one of the most widely used methods of stress testing.

Proportion of shares, which is located at the systems operated by an exchange company markets in circulation and is divided into a number of investors.

(Exercise price, exercise price, strike price) the price at which the underlying may be bought or sold upon exercise of the option.

Strong BUY recommendation of an analyst who expects a significantly better price development for a share than for an (industry)index .

Strong SELL recommendation of an analyst who expects a significantly worse price development for a share than for an (industry)index .

Part of the result from the market interest rate method, which represents the profit / loss of a bank from the structure of the fixed interest rates of all transactions entered (balance sheet items). Mathematically, the structural contribution shall be determined by the respective asset and liability volumes are measured at the corresponding reference rates from the interbank market.

Period in which securities may be acquired under the terms of issue of the primary market.

It defines a right to purchase shares. They are offered to the shareholders, if the corporation intends to increase its capital stock and therefore it places new shares on the stock exchange.

agreement in a repo that allows the seller to replace the bond during the maturity by another bond with similar quality (only in repos with general collateral.

Corporate body of the corporation, which appoints, dismisses and monitores the Executive Board. The Supervisory Board is elected at the Annual General Meeting and represents the interests of the owners (shareholders).

JPY-bond of Japanese companies in the Euro-market,The number of permitted company is limited by the Japanese ministry of finance.