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Q: do you know what the "disparity index" is?

Category: glossary , Asked by: Q. Bartlett from United Kingdom

A: a "disparity index " is A technical indicator that measures the relative position of the most recent closing price to a selected moving average and reports the value as a percentage. A value greater than zero suggests that the asset is gaining upward momentum, while a value less than zero can be interpreted as a sign that selling pressure is increasing. Extreme values of this indicator can be a very useful tool for contrarian investors to foretell periods of exhaustion. Once the price is excessively pushed in one direction, there are very few investors to take the other side of the transaction when the participants wish to close their position, ultimately leading to a price reversal. Similar to the ROC indicator, important signals are generated when the indicator crosses over the zero line because it is an early signal that momentum is building. Visit Oanda

    what is the "trade"?

    Category: glossary by Y. Santos from Luxembourg

    a "trade " is A transaction involving buying or selling a security or commodity.

    please tell me what an "arm's length market" is

    Category: glossary by Q. Bentley from Cambridge, Canada

    A financial market consisting of parties that have no relationship or contact with one another aside from the transaction at hand. In the United States, the majority of exchanges are considered to be arm's length, where buyers and sellers are matched according only to the details of a transaction. The two parties will often never know they were involved with each other. An arm's length market is based on the principle that parties should have equal influence in transactions. Furthermore, it removes opportunities for deals derived from personal relationships, which may manipulate the market.

    do you know what the "days payable outstanding - dPO" is?

    Category: glossary by T. Bean from Oxford, United Kingdom

    A company's average payable period. Calculated as: Notice that the formula may also be written as: accounts payable / (cost of sales/number of days). DPO is an indicator of how long a company is taking to pay its trade creditors. DPO is typically looked at either quarterly or yearly (90 or 365 days).

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    what is a "negative obligation"?
    the "negative obligation " is An obligation of NYSE specialists to remain on the sidelines and refrain from acting as principal when there is sufficient market demand and supply to efficiently match orders. The negative obligation ensures that specialists are not getting involved in the market on their own behalf when the market is able to "make itself" and sufficiently match buyers with sellers. This obligation on the specialists provides the public with the opportunity to transact with each other without specialist intervention. Visit FX Universal

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