# Finance

## 1.Long option--buy low, sell high

## Short option--sell high, buy low

borrow the stock from others, then sell. after a while the buy it at low. then get benifits.

## 2.difference between order, trade and position

* An order is the instruction to buy or sell a currency at a specified rate. The order remains valid until executed or cancelled.
* A trade is the execution of the order.
* A position is the total of all trades for a specific market.

## 3. What is a call and a put?

If a **call** is the right to buy, then perhaps unsurprisingly, a **put** is the option to sell the underlying stock at a predetermined strike price until a fixed expiry date. The **put** buyer has the right to sell shares at the strike price, and if he/she decides to sell, the **put** writer is obliged to buy at that price.

## 4. In-House

[In-House](http://www.investopedia.com/terms/i/in-house.asp#ixzz4u0cXqfaj)

<http://www.investopedia.com/terms/i/in-house.asp#ixzz4u0cXqfaj>

### What is 'In-House'

In-house refers to conducting an activity or operation within a company, instead of relying on [outsourcing](http://www.investopedia.com/terms/o/outsourcing.asp). A firm uses its own employees and time to keep a division or business activity, such as [financing](http://www.investopedia.com/terms/f/financing.asp) or brokering, in-house.

An in-house operation is an activity performed within the same business, using the company’s assets and employees to perform the necessary tasks, whereas outsourcing involves hiring outside assistance, often through another business, to perform those activities instead of using internal assets or employees.

### Financial Benefits of Maintaining In-House Services

When dealing with customers, a firm may try to keep the entire[transaction](http://www.investopedia.com/terms/t/transaction.asp)in-house. For example,[in-house financing](http://www.investopedia.com/terms/i/inhousefinancing.asp)is a common practice in certain industries. This form of financing works by using the firm's own resources to extend the customer's credit with the firm potentially benefiting from any associated interest payments in exchange for assuming the risk associated with default.

For a brokerage, the firm may try to match a client's order with another customer, creating an in-house transaction. This allows the firm to benefit from both the buy- and sell-side[commissions](http://www.investopedia.com/terms/c/commission.asp)and potentially lowering other administrative costs.

## 5. Insider trading

**Insider trading** is the trading of a [public company](https://en.wikipedia.org/wiki/Public_company)'s [stock](https://en.wikipedia.org/wiki/Stock) or other [securities](https://en.wikipedia.org/wiki/Security_\(finance\)) (such as [bonds](https://en.wikipedia.org/wiki/Bond_\(finance\)) or [stock options](https://en.wikipedia.org/wiki/Option_\(finance\))) by individuals with access to nonpublic information about the company. In various countries, some kinds of trading based on insider information is illegal. This is because it is seen as unfair to other investors who do not have access to the information, as the investor with insider information could potentially make far larger profits that a typical investor could not make.

## 6 What is front office and back office operation?

A financial services company is logically broken up into three parts: the **front office** includes sales personnel and corporate finance, the **middle office** manages risk and corporate strategy, and the **back office** provides administrative, technical and support services.

## 7. items

stock;

options:

currence:

asset: 财产

wealthy manage:

equity: stock\&asset

capital: 资本

## 8.MIFID & MIFID 2

MIFID:

The markets in financial instruments directive(MIFID) is a regulation that increases the transparency across the European Union's financial markets and standardizes the regulatory disclosures required for particular markets. The MIFID implemented new measures, such as pre- and post-trade transparency requirements, and set out the conduct standards for financial firms. The directive has been in force across the European Union(EU) since 2008. MIFID has a defined scope that primarily focuses on over the counter(OTC) transactions.

MIFID 2:

effective in January 3, 2018. Building on the rules already in place, these new rules are designed to take into account developments in the trading environment since the implementation of MIFID in 2007 and, in light of the financial crisis, to improve the functioning of financial markets making them more efficient, resilient and transparent.
