What Is a Trade Sanction? Trade sanctions are legal restrictions on trade with a country. Trade sanctions are a subcategory of economic sanctions, which are economic penalties imposed on a country to accomplish policy goals beyond the sanctioned economic activity. Key Takeaways Trade sanctions are restrictions on trade with a country for reasons of foreign
What Is a Trade Secret? A trade secret is any practice or process of a company that is generally not known outside of the company. Information considered a trade secret gives the company a competitive advantage over its competitors and is often a product of internal research and development. To be legally considered a trade secret
What Is a Trade Signal? A trade signal is a trigger for action, either to buy or sell a security or other asset, generated by analysis. That analysis can be human generated using technical indicators, or it can be generated using mathematical algorithms based on market action, possibly in combination with other market factors such as
What Is a Trade Surplus? A trade surplus is an economic measure of a positive balance of trade, where a country’s exports exceed its imports. A trade surplus occurs when the result of the following calculation is positive: T r a d e B a l a n c e = T o t a
What is the Trade Volume Index (TVI) The Trade Volume Index (TVI) is a technical indicator that moves significantly in the direction of a price trend when substantial price changes and volume occur simultaneously. Unlike many technical indicators, the TVI is generally created using intraday price data. Understanding Trade Volume Index (TVI) The Trade Volume
What Is a Trade War? A trade war happens when one country retaliates against another by raising import tariffs or placing other restrictions on the other country’s imports. Trade wars can commence if one country perceives that a competitor nation has unfair trading practices. Domestic trade unions or industry lobbyists can pressure politicians to make
What Is Trade-Weighted Dollar? The trade-weighted dollar is an index created by the Federal Reserve (Fed) to measure the value of the U.S. dollar (USD), based on its competitiveness versus trading partners. Key Takeaways The trade-weighted dollar is an index created by the Fed to measure the value of the USD, based on its competitiveness
What Is a Trading Floor? A trading floor refers to a physical area wherein trading activities in financial instruments, such as equities, fixed income, futures, and options, take place. Trading floors are situated in the buildings of various exchanges, such as the New York Stock Exchange (NYSE) and the Chicago Board of Trade (CBOT). Trading
What Are Trading Assets? Trading assets are a collection of securities held by a firm for the purpose of reselling for a profit. They are recorded as a separate account from the investment portfolio and may include U.S. Treasury securities, mortgage-backed securities, foreign exchange rate contracts, and interest rate contracts. Trading assets include those positions
What is the Toronto Stock Exchange (TSX)? The term Toronto Stock Exchange (TSX) refers to a Canadian stock exchange located in Toronto, Ontario. Founded in 1861, the TSX is Canada’s premier stock exchange with more than 1,500 listed companies, including those from the energy, mining, technology, and real estate sectors. The exchange is also home
