Jim Cramer, the famous media personality and investor, frequently describes investment terms as “Genuine Wall Street Gibberish”. That sentiment is prevalent in the trading community. Investmentterms.com was just released as the start of a long-term project to cut through the “gibberish” and bring meaningful definitions to the futures community.
The site contains a number of interesting features. The homepage consists of 6 randomly selected words rotating on a daily basis. The site is easy to navigate, with a browse box offering a dictionary-like index by letter of the alphabet. The site also contains a Word of the Day RSS feed, which is a handy way to learn a new term every day.
The definitions provided are clear and well written. For instance, the definition of a Butterfly Spread is “A three-legged option spread in which each leg has the same expiration date but different strike prices. For example, a butterfly spread in soybean call options might consist of one long call at a $5.50 strike price, two short calls at a $6.00 strike price, and one long call at a $6.50 strike price.”
