U — Trading Terms Starting With U
Explore trading terms beginning with U, with clear definitions covering market structure, execution, risk, instruments, analysis, psychology, and performance concepts used by traders.
Trading terms beginning with U
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Underlying Asset
The underlying asset is the financial instrument on which a derivative contract is based. It may be a stock, index, currency, commodity, bond, interest rate, or another measurable financial reference.
Read full definitionUnrealized Profit
Unrealized profit is the gain shown on an open position that has not yet been closed. It changes continuously as market price moves and becomes realized only when the position is exited.
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Unrealized loss is the loss shown on an open position that has not yet been closed. It affects account equity and margin even though the loss has not yet been realized.
Read full definitionUptrend
An uptrend is a sustained bullish market structure commonly identified by higher highs and higher lows. It reflects continued buying pressure and successful pullbacks.
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An uptick occurs when a transaction is executed at a higher price than the previous trade. It can indicate immediate buying pressure but does not by itself confirm a trend.
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The uptick rule is a regulation designed to restrict certain short sales during significant price declines. Its purpose is to reduce aggressive short selling into a rapidly falling market.
Read full definitionUnit Trust
A unit trust is a pooled investment vehicle where investors buy units representing a share of the trust’s underlying assets. Returns depend on the value and income of those assets.
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An uncovered option is sold without holding an offsetting position in the underlying asset or another option. It may expose the seller to substantial or theoretically unlimited risk.
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Unsystematic risk is risk specific to a company, sector, or asset. It may arise from management decisions, product failure, regulation, litigation, or company-specific financial problems.
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