What Is a Day Trader? A day trader is a type of trader who executes a relatively large volume of short and long trades to capitalize on intraday market price action. The goal is to profit from very short-term price movements. Day traders can also use leverage to amplify returns, which can also amplify losses. While many strategies are
What Is the DUAL Commodity Channel Index (DCCI)? The dual commodity channel index (DCCI) is a tool used in technical analysis to identify when an asset or market is overbought or oversold. A dual commodity channel index is a variation on the popular commodity channel index, which is an indicator invented in 1980 by Donald
What Is Discounted Cash Flow (DCF)? Discounted cash flow (DCF) refers to a valuation method that estimates the value of an investment using its expected future cash flows. DCF analysis attempts to determine the value of an investment today, based on projections of how much money that investment will generate in the future. It can help those
What Is the Dividend Discount Model? The dividend discount model (DDM) is a quantitative method used for predicting the price of a company’s stock based on the theory that its present-day price is worth the sum of all of its future dividend payments when discounted back to their present value. It attempts to calculate the
What Is a Dead Cat Bounce? A dead cat bounce is a temporary, short-lived recovery of asset prices from a prolonged decline or a bear market that is followed by the continuation of the downtrend. Frequently, downtrends are interrupted by brief periods of recovery—or small rallies—during which prices temporarily rise. The name “dead cat bounce”
What Is Deadweight Loss? A deadweight loss is a cost to society created by market inefficiency, which occurs when supply and demand are out of equilibrium. Mainly used in economics, deadweight loss can be applied to any deficiency caused by an inefficient allocation of resources. Price ceilings, such as price controls and rent controls; price
What is Dealer Financing Dealer financing is a type of loan that is originated by a retailer to its customers and then sold to a bank or other third-party financial institution. The bank purchases these loans at a discount and then collects principle and interest payments from the borrower. This is also called an indirect
What Is a Dealer Option? A dealer option is a contract issued on the physical inventory of a commodity. A dealer option is typically issued by companies that buy, sell, or otherwise use a commodity in conducting business. This type of option is not traded on an exchange. Rather, it is traded as an over-the-counter (OTC)
What Is a Dealer Market? A dealer market is a financial market mechanism wherein multiple dealers post prices at which they will buy or sell a specific security or instrument. In a dealer market, a dealer (who is designated as a “market maker”) provides liquidity and transparency by electronically displaying the prices at which it is
What Is a Dangerous Asset? A dangerous asset is a piece of property or investment, which poses a risk of liability to its owner. Liability means that the owner of the dangerous asset could be sued or found legally liable for someone getting hurt. The term dangerous asset usually applies to a physical asset, such as
