What Is Daylight Overdraft? A daylight overdraft occurs when a bank withdraws more money than it has in its Federal Reserve account in order to make a payment; the overdraft must be settled by the end of the business day. Key Takeaways With a daylight overdraft, a bank transfers net more out in a day
What is a Day Order? A day order is a stipulation placed on an order to a broker to execute a trade at a specific price that expires at the end of the trading day if it is not completed. A day order can be a limit order to buy or sell a security, but
What Is the Day Rate (Oil Drilling)? Day rate refers to all in daily costs of renting a drilling rig. The operator of a drilling project pays a day rate to the drilling contractor who provides the rig, the drilling personnel and other incidentals. The oil companies and the drilling contractors usually agree on a flat
What Is Days Sales of Inventory (DSI)? The days sales of inventory (DSI) is a financial ratio that indicates the average time in days that a company takes to turn its inventory, including goods that are a work in progress, into sales. DSI is also known as the average age of inventory, days inventory outstanding
What Are Days to Cover? “Days to cover” measures the expected number of days needed to close out a company’s outstanding shares that have been sold short. It computes a company’s shares that are currently shorted divided by the average daily trading volume to give an approximation of the time required, expressed in days, to
What Is Days Working Capital? Days working capital describes how many days it takes for a company to convert its working capital into revenue. The more days a company has of working capital, the more time it takes to convert that working capital into sales. The higher the days working capital number the less efficient
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
