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Traders Glossary

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D.A.R.T.
Direct Access Real Time

Day Order
Order to buy/sell securities at a certain price that expires if not executed on the day it is placed.

Diluted Shares
A way of characterizing the number of outstanding shares that a publically held company could have. The diluted shares measure is the sum of the company's normally outstanding shares, the shares that would be outstanding if every warrant and stock option were exercised, and the shares that would be outstanding if every security convertible into the stock (e.g., certain preferred shares) were converted. This is sometimes used when computing earnings per share numbers. A larger number of outstanding shares means lower earnings per share, rather obviously; this is known as 'dilution of earnings' or computation of 'fully diluted' earnings.

Direct Access
The ability to place a trade electronically with any participating exchange, ECN or Market Maker without intervention.

DNR, 'Do Not Reduce'
This is usually assumed unless you specify otherwise, but different brokers may have different practices and some may require you to specify DNR if you want it. What it deals with is how the order is to be/not adjusted when dividends or other distributions occur. For example a $1/share dividend on a stock for which you have entered an order DNR brings the price closer to your bid or takes it further away from your offer. Without the DNR specification, on the ex-dividend date your order price is reduced by the amount of the distribution.

Downtick
Downtick means the next trade is at a lower price than the previous trade. Also see uptick.


*The term Direct Access refers to the client’s ability to determine which Exchange, ECN or Market Maker receives their order. The term does not mean to imply that you can trade without a broker, as any transaction would require a relationship with a registered Broker-Dealer.

The risk of loss in electronic trading can be substantial, you should therefore consider whether such trading is suitable for you based on your individual circumstances and financial resources. Account access, trade execution and system response may be adversely affected by market conditions, quote delays, system performance and other factors. Extended hours trading entails several risks including lower liquidity, higher volatility, wider spreads, changing prices, unlinked markets, news and announcements. Not all securities, products or services are available in all states or countries outside the United States and nothing herein should be deemed as an offer or solicitation of these securities, products and services in any jurisdiction in which Online Brokerage Services is not properly licensed and registered.

Online Brokerage Services, Inc. reserves the right to refuse the transfer of funds from a brokerage account to another account, other than that which was used as the brokerage account's original source of funding. Online Brokerage Services, Inc. will not allow for third-party funding. Funds are subject to a minimum holding period of thirty (30) days upon initial funding of account.


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