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Transaction Costs
The expenses incurred when buying or selling securities, including broker fees and taxes.
Futures Markets
Competitive marketplaces where parties can trade standardized futures contracts; that is, legal agreements to buy or sell something at a predetermined price at a specified time in the future.
Leverage
The use of borrowed funds or financial instruments to increase the potential return of an investment, which can also magnify the potential for loss.
Marking to Market
The process of adjusting the value of an asset to its current market level rather than its book value or original cost.
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