GlossaryMarkets and instruments

Stocks

Listed shares and exchange-traded funds such as Apple or an S&P 500 tracker, bought and sold in whole shares on an exchange rather than as contracts.

A stock is a share of ownership in a listed company: Apple, Nvidia, a regional bank. An exchange-traded fund, or ETF, is a listed basket that tracks an index, a sector or a commodity and trades exactly like one share. Both change hands on an exchange, the NYSE or the Nasdaq for US names, in whole shares, at a price quoted in the exchange's currency, and the US cash session runs from 9:30 to 16:00 New York time.

The US Securities and Exchange Commission describes the two ways a share pays: a dividend, when the company distributes part of its profit, and a capital gain, when the share is sold for more than it cost. A strategy earns the second. Its position is measured in shares, not in lots, so a track record reads 200 shares of an ETF bought at 77.47 and sold at 84.96, and its profit is that difference times the quantity, less the broker's commission.

What moves a share is the company first: earnings, guidance, a product, a lawsuit. Then the market as a whole, which is why an ETF on an index moves with that index and nothing else. Leveraged and inverse ETFs multiply the daily move of what they track, in either direction, and are rebalanced every day; held for weeks, they drift from the index they are named after.

A strategy tagged Stocks on Javlot trades listed shares or ETFs, and the tag is derived from its trade history, not declared. Its history counts positions in shares, and when it also trades another class the tag reads Multi-asset instead.

Glossary entries are educational. They describe how a term is commonly used in automated forex investing, including on the Javlot platform. They are not a personalized recommendation and not a forecast. Past performance does not guarantee future results.