Lock in profits simply means to take some money off the table when a trade is going well. It’s a way to protect your gains and ensure that you don’t give back all of your profits if the market turns against you. There is no one perfect way to lock in profits, and different traders … Read more
The term “upside” refers to the potential for a security to increase in value. The upside potential is often compared to the downside potential, which is the potential for the security to decrease in value. When evaluating a security, investors will often consider both the upside and downside potential in order to determine whether the … Read more
A “fat finger error” is a type of trading mistake that can occur when a trader accidentally hits the wrong key on their keyboard, resulting in an order that is much larger or smaller than they intended. This can happen when a trader is entering an order manually, or if they are using a trading … Read more
A handle is defined as the highest price paid for a security during a given trading period. The handle is used to reference the price of a security when quoting prices in the market. For example, if a stock is trading at $25.50, the handle would be $25. What is a cup with two handles … Read more
How to Use Average Daily Trading Volume (ADTV) How many times can you trade in a day? The number of times you can trade in a day depends on the regulations of the exchange or marketplace where you are trading. Some exchanges have limits on the number of trades that can be made in a … Read more
A trade trigger definition is a set of conditions that must be met in order for a trade to be executed. These conditions can include things like the price of the security, the time of day, or the volume of trading. Trade trigger definitions can be simple or complex, and they can be customized to … Read more
An entry point is the price level at which a trader enters into a trade. A trader may choose to enter a trade at the market price, which is the current price of the security, or they may choose to enter at a different price level, which is known as an entry point. There are … Read more
The role of a seller in the options market is to provide liquidity and to help facilitate the efficient functioning of the market. By selling options, sellers are able to provide liquidity to the market by making it easier for buyers and sellers to find each other and to trade with each other. In addition, … Read more
The Consolidated Tape is a real-time electronic tape that consolidates the quotation and trading information from all of the exchanges that trade listed securities. The information is then disseminated to the public through the various tape vendors. What is consolidated market data? Consolidated market data is a type of data that includes information from multiple … Read more
