A |B |C |D |E |F |G |H |I |J |K |L |M |N |O |P |Q |R |S |T |U |V |W |X |Y |Z
A
Ask Price: The price at which a seller is willing to sell a security.
Arbitrage: Simultaneous buying and selling of assets to profit from price differences.
Asset Allocation: Dividing investments among different asset categories to reduce risk.
B
Bear Market: A market condition where prices are falling, encouraging selling.
Bid Price: The price at which a buyer is willing to purchase a security.
Breakout: A price movement outside a defined support or resistance level.
C
Candlestick Chart: A chart type used to display price movement over time.
Capital Gain: The profit from the sale of an asset.
Contract Size: The amount of the underlying asset represented by one futures contract.
D
Day Trading: Buying and selling financial instruments within the same trading day.
Derivative: A financial contract deriving its value from an underlying asset.
Drawdown: The peak-to-trough decline during a specific period for an investment.
E
Equity: Ownership interest in a company, represented by shares.
ETF (Exchange-Traded Fund): A fund traded on an exchange, like a stock.
Execution: The process of completing an order to buy or sell a security.
F
Futures Contract: An agreement to buy or sell an asset at a future date and price.
Fill Price: The price at which an order is executed.
Fundamental Analysis: Evaluating a security’s intrinsic value by analyzing economic and financial factors.
G
Gamma: A measure of how much the delta of an option changes with price changes in the underlying asset.
Gap: A price level where no trading has taken place.
Growth Stock: A stock expected to grow at an above-average rate compared to its peers.
H
Hedge: An investment made to reduce the risk of adverse price movements in an asset.
High-Frequency Trading (HFT): Algorithmic trading strategies executing numerous orders rapidly.
Horizontal Support: A price level where buying pressure typically prevents further price decreases.
I
Index Fund: A mutual fund designed to replicate the performance of a market index.
Initial Margin: The minimum amount required to open a position in a futures contract.
Intrinsic Value: The real, tangible worth of an asset, calculated independently of market price.
J
Junk Bond: A high-risk, high-yield bond with a lower credit rating.
Jobber: A trader who seeks to profit from short-term price movements.
K
Keltner Channel: A volatility-based technical indicator comprising moving averages and average true range.
Knock-In Option: A type of option activated only when the underlying asset reaches a certain price.
L
Leverage: Using borrowed funds to amplify potential returns or losses.
Limit Order: An order to buy or sell a security at a specific price or better.
Liquidity: The ease with which an asset can be bought or sold without affecting its price.
M
Margin Call: A demand from a broker for additional funds to maintain a trading position.
Market Order: An order to buy or sell a security immediately at the best available price.
Momentum: The rate of acceleration of a security’s price or volume.
N
NASDAQ: A global electronic marketplace for buying and selling securities.
Net Asset Value (NAV): The total value of a fund’s assets minus liabilities.
O
Options Contract: A financial instrument giving the right, but not the obligation, to buy or sell an asset at a specific price.
Overbought: A condition where an asset’s price is considered too high based on technical indicators.
Oversold: A condition where an asset’s price is considered too low based on technical indicators.
P
Pip: The smallest price movement in the exchange rate of a currency pair.
Portfolio: A collection of financial assets such as stocks, bonds, and cash equivalents.
Position Sizing: Determining the number of units to trade based on risk tolerance and account size.
R
Resistance Level: A price point where selling pressure prevents further price increases.
Risk Management: Strategies to minimize potential losses in trading.
S
Short Selling: Selling an asset you don’t own, aiming to profit from a price decline.
Spread: The difference between the bid and ask price of a security.
T
Trailing Stop: A stop-loss order that adjusts as the price moves in the trader’s favor.
Total Trailing Profit: A profit which has been trailed.
Total Trailing Profit: A profit which has been trailed.