Universe Of Securities


DEFINITION of 'Universe Of Securities'

A set of securities that shares a common feature such as the same market capitalization, industry or index. Universe of securities can also refer to securities within a defined price range, securities that deal in specific commodities and/or securities with the same product line.

BREAKING DOWN 'Universe Of Securities'

A universe of securities is usually referred to in the context of technical analysis to backtest for technical trading strategies. For example, in order for a technical trader to test a specific trading strategy targeted toward small-cap stocks, he or she will need to limit backtesting analysis to include only small caps. Thus, a trading strategy geared toward a specific universe of securities may not provide reliable results if the strategy is tested on a broad universe of securities.

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  3. Large Cap - Big Cap

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  4. Technical Analysis

    A method of evaluating securities by analyzing statistics generated ...
  5. Market Capitalization

    The total dollar market value of all of a company's outstanding ...
  6. Backtesting

    The process of testing a trading strategy on prior time periods. ...
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