Daily chart - A daily chart is a graph that shows the price movement of a securities over the course of a single trading day. Charts using bars, candles, or lines are frequently used to represent these data values. A daily chart and a weekly chart can be compared.
Daily dividend factor (date) - Daily dividend distributed by a money market mutual fund.
Dark pool - A dark pool is a privately run financial marketplace or exchange where securities can be traded. Institutional investors can trade through dark pools without being exposed until after the trade has been completed and disclosed. Dark pools are a kind of alternative trading system (ATS) that provide some investors the chance to make trades and place huge orders without disclosing their intentions to the public while looking for a buyer or seller.
Day trader - A day trader is a type of trader who conducts a sizable number of short- and long-term deals to profit from intraday price movement in the market. Profiting from very brief price changes is the goal of a day trader. Leverage is another tool day traders can employ to boost returns. However, when done improperly, it can also boost losses. Day traders typically hold their positions from just a few minutes up to a few hours. Day trading positions are closed before the end of the trading day, to avoid overnight or after hours risk exposure as a result of disappointing earnings reports and/or negative news. Day trading is an advanced style of trading.
Debt/EBITDA—Earnings before interest, taxes, depreciation, and amortization (EBITDA) is a ratio that indicates how much money is made and accessible to pay down debt before those costs are paid. Debt/EBITDA gauges a business's capacity to settle its accumulated debt. A high ratio result can suggest that a business has an excessive amount of debt. In the covenants for business loans, banks frequently set a specific debt/EBITDA target that a firm must maintain in order to avoid having the full loan fall due immediately. Credit rating agencies frequently use this statistic to determine a company's likelihood of defaulting on issued debt, and businesses with a high debt/EBITDA ratio may not be able to properly pay their debt, which could result in a decreased credit rating.
Default - Default occurs when necessary interest or principal payments are not made, whether the debt is a loan or a security. Debt commitments can be ignored by people, companies, and even entire nations. For creditors, default risk is an essential factor. Failure of a debtor to make timely payments of interest and principal as they come due or to meet some other provision of a bond indenture.
Delta - A risk metric that calculates the price change of a derivative, like an options contract, given a $1 change in the underlying securities. Additionally, the delta informs options traders of the hedging ratio needed to achieve delta neutrality. The likelihood that an option will expire in the money is a third way to understand an option's delta. For instance, if a call option has a delta value of +0.45, it means that, all other things being equal, if the price of the underlying stock rises by $1 per share, the option on it will rise by $0.45 per share. Depending on the type of choice, delta values might be either positive or negative.
Demand - Demand in economics refers to a consumer's readiness to pay a particular price for goods and services as well as their desire to buy them. Demand for a good or service typically declines when its price goes up. The amount needed will rise when a product's price drops, in a similar manner. Consumers and businesses are quite familiar with the idea of demand because it makes sense and happens organically throughout the course of almost any day. For instance, when a product's pricing is low, shoppers who are keeping an eye on it will buy more of it. When costs increase, such as during a change in season, consumers may buy less or even nothing at all.
Depth of market (DOM) - A measurement of the supply and demand for liquid and tradeable assets. Depth of market (DOM) is based on how many buy and sell orders are active for a certain asset, like a stock or futures contract. The market is deemed to be deeper or more liquid the more of those orders there are. Since it contains a list of pending orders for a securities or currency, depth of market data is sometimes referred to as the order book. Which transactions can be processed is decided using the information in the book. Most internet brokers offer DOM data at no cost or a nominal price.
Derivatives - A type of financial contract whose value is based on an underlying asset, group of assets, or benchmark. A derivative is an agreement made between two or more parties who can trade over-the-counter or on an exchange (OTC). These contracts have their own risks and can be used to trade a wide range of assets. Derivative prices are based on changes in the underlying asset. These financial instruments can be traded to reduce risk and are frequently used to get access to specific markets. Derivatives can be used to either accept risk with the intention of receiving a similar reward or to mitigate risk (hedging) (speculation). The risk-averse can transfer risk (and the associated profits) to the risk-takers using derivatives.
Disruptive technology - Innovations known as disruptive technologies fundamentally change how markets, industries, or businesses function. Because it has characteristics that are unmistakably superior to the systems or practices it replaces, disruptive technologies sweep aside their predecessors. Examples of recent disruptive technologies include ride-sharing apps, house-sharing accommodations, artificial intelligence and e-commerce. Vehicle, electricity, and television were revolutionary inventions in their own eras.
Distribution - In finance, distribution can refer to a number of different things, most of which have to do with paying assets from a fund, account, or individual security to an investor or beneficiary. Distributions from retirement accounts are among the most frequent and become necessary when the account holder reaches a particular age. A firm or mutual fund paying stock, cash, or other rewards to its shareholders is referred to as making a distribution. Finally, distribution is one of the four market phases (accumulation, ascending, distribution, descending) involving smart money activity. When a specific equity or index has reached smart money price target and they are satisfied with it, they are now are looking to sell. The sellout period that is about to begin is called distribution phase. This phase develops towards the end of an uptrend that has been lasting for while.
Divergence - Divergence occurs when an asset's price moves in the opposite direction from other data or from a technical signal, such an oscillator. Divergence signals that the price trend may be waning and, in extreme situations, may even result in a price reversal. Divergence can be both beneficial and bad. Positive divergence suggests that the asset's price may rise in the future. A move lower in the asset is indicated by negative divergence.
Diversification - A portfolio's investments that includes a wide variety of assets as part of the risk management approach. To reduce exposure to any one asset or risk, a diversified portfolio combines a variety of different asset classes and investment vehicles. This strategy is justified by the idea that a portfolio made up of various asset classes will, on average, produce superior long-term returns and reduce the risk of any given holding or security.
Dividend - A dividend is a payment made by a corporation to its shareholders that is decided by the board of directors. Dividend payments are frequently made quarterly and might take the form of cash payments or stock reinvestments. The dividend yield, which is the dividend per share, is defined as a percentage of the company's share price. Common shareholders of a dividend-paying company that own the shares on the ex-dividend date or earlier, are eligible to receive a payment.
Dividend paid - Amount paid to the mutual fund or security's registered shareholder.
Dividend reinvest NAV - Dividends given to the shareholder of record that are automatically reinvested in further securities or mutual funds at the security's net asset value.
Dividend yield - The annual percentage return that a mutual fund earns. Divide the annual dividend per share by the current net asset value or public offering price to get the yield.
Dollar cost averaging (DCA) - A long-term strategy that involves investing the same sum of money over a long period of time, regardless of share price. By employing dollar cost averaging, investors can lower their average cost per share and lessen the effects of volatility on their portfolio. This tactic effectively eliminates the need to try to time the market to buy at the best pricing. By making a fixed investment, investors can buy more shares when the price is low and fewer shares when the price is high. This could lower the average cost of your investments overall.
Double bottom - Charting pattern used in technical analysis that denotes a shift in trend and a change in momentum from earlier leading price action. It represents the decline of a stock or index, the subsequent recovery, the subsequent decline to the same or a somewhat lower level, and the subsequent rebound. The two bottoms together resemble the letter "W." A support level is the low that has already been touched twice.
Double top - Bearish technical reversal pattern formation that develops after hitting a resistance of level of high prices twice and failing to break above them. This pattern formation oftentimes displays a slight decrease in price between the two highs. The confirmation comes when price is not able to break above those highs, it pulls back, breaks below recent support levels and starts to drift lower. When that happens, it becomes conclusive that price is an a downtrend.
Double witching - When two different classes of stock options or futures expire at the same time. Double witching generally happens on the third Friday of each month except for March, June, September, and December. Stock options, index options, stock index futures, and single stock futures are among the assets that may be considered double witching.
Dow Jones Industrial Average (Dow) - The most widely used metric to measure stock market performance. The Dow Jones Industrial Average index is based on the prices of 30 actively traded blue chip stocks, primarily those of important industrial corporations.
Down volume - Down volume increase occurs when a security's price drops on high trading volumes. This is a bearish scenario especially when confirmed by price breaking support and failing to recover.
Downtrend - A downtrend is a steadily declining of stock price, commodity value, or activity on any financial markets. A downtrend is made of a series of lower lows and lower highs over an extended period of time. The downtrend can last anywhere between a few days to several months, and even years.
Duration - Duration is the number of years it takes for an investor to be repaid by the total cash flows of a bond. Duration can also be used to assess the price sensitivity of a bond or fixed income portfolio to changes in interest rates. Because many forms of duration measurements are also computed in years, the length of a bond is frequently confused with its term or time to maturity. However, the number of years until a bond's principal is repaid is a linear measure which is independent of interest rate fluctuations. When compared to maturity time, duration is nonlinear and increases at an ever-increasing rate.