Trading

The difference between the highest price a buyer will pay (bid) and the lowest price a seller will accept (ask…

Volatility bands placed above and below a moving average. Price near the upper band suggests overbought; near …

A price chart where each 'candle' shows the open, high, low, and close for a time period. Body color indicates…

Buying and selling financial instruments within the same trading day to profit from short-term price moves. Po…

Evaluating a security's intrinsic value by examining financial statements, industry conditions, and macroecono…

A standardized agreement to buy or sell an asset at a specified price and date in the future. Used for hedging…

Borrowed capital used to amplify a trade's potential returns. Magnifies both gains and losses — 10:1 leverage …

An order to buy or sell at a specified price or better. Guarantees price but not execution — the order may go …

How easily an asset can be bought or sold without significantly affecting its price. Major stocks, ETFs, and c…

A trend-following momentum indicator that shows the relationship between two moving averages. Signal crossover…

Trading with borrowed funds from a broker, increasing buying power. Subject to margin calls if losses exceed t…

An order to buy or sell immediately at the best available price. Guarantees execution but not price — useful w…

An indicator that smooths price data by calculating the average price over a specified period — commonly 50-da…

Trading contracts that give the right (but not obligation) to buy or sell an asset at a set price by an expira…

A US SEC designation for traders who execute four or more day trades within five business days in a margin acc…

Determining the amount of capital to allocate to a single trade based on account size and risk tolerance — typ…

The ratio of potential loss to potential gain on a trade. A 1:3 ratio means risking $1 to potentially make $3 …

A momentum oscillator (0-100) measuring the speed and magnitude of price changes. Above 70 suggests overbought…

An ultra-short-term trading strategy that aims to profit from small price changes, with positions held for sec…

Selling borrowed securities with the intent to buy them back later at a lower price. Profits from a decline in…

A pre-set order to sell a position if it falls to a specified price, limiting potential losses on a trade. A c…

Key price levels where buying (support) or selling (resistance) historically emerges. Traders watch for bounce…

A strategy of holding positions for several days to weeks, aiming to capture price 'swings' in trending or ran…

A pre-set order to close a position when it reaches a target price, locking in gains automatically. Often used…

Evaluating securities by analyzing statistical trends from trading activity — primarily price and volume — usi…

The number of shares or contracts traded in a security over a given period. High volume often confirms the str…

The degree of price variation for a security over time. Higher volatility means larger price swings and genera…