A trader is an individual who buys and sells securities for their own account, rather than for another person or institution. Traders can be divided into two main groups: 1. Retail traders: These are individuals who trade for themselves, rather than for an institution. They make up a small percentage of the overall market. 2. … Read more
Money management is the art and science of managing your money so that you can achieve your financial goals. It includes both short-term and long-term planning, as well as risk management. There are a number of different money management strategies that you can use, depending on your goals and the amount of risk you are … Read more
Maintenance margin is the minimum amount of equity that must be maintained in a margin account. The maintenance margin is set by the broker and is typically a percentage of the account’s value, e.g. 30%. This means that if the value of the account falls below 30% of the initial value, the broker will require … Read more
In investing, a limit order is an order to buy or sell a security at a specified price or better. A buy limit order can only be executed at the limit price or lower, and a sell limit order can only be executed at the limit price or higher. A limit order is not guarantee … Read more
A day trader is an individual who trades stocks or other securities within a single day. Day traders typically buy and sell securities multiple times throughout the day in an attempt to profit from short-term price fluctuations. There is no one definitive day trader definition, as the term can refer to different trading strategies and … Read more
A bidder is an individual or entity who offers to buy a security or commodity at a certain price. Bidders are typically involved in an auction process in which securities or commodities are sold to the highest bidder. What is bid yield? Bid yield is the interest rate that a buyer is willing to pay … Read more
What is a Future in the Stock Market? A future in the stock market is a contract that allows the buyer to purchase a set amount of shares at a predetermined price on a set date. Futures contracts are often used by investors to hedge against market volatility or to speculate on future price movements. … Read more
What Is the Risk/Reward Ratio? How Stock Investors Use the Risk/Reward Ratio What are the 4 types of risk? The four types of risk are: 1. credit risk 2. market risk 3. liquidity risk 4. operatinal risk How do investors look at risk vs reward? The idea of risk vs reward is simple: investors want … Read more
When a market is moving rapidly in one direction and then reverses abruptly, it is said to be whipsawing. This type of market action can be very difficult to trade because the price can move so quickly that it is hard to get in or out of a position without being stopped out. Whipsawing markets … Read more
A fill is the execution of an order for a security. A fill can be partial or complete. A partial fill happens when an order is only partially executed, usually due to a lack of available shares. A complete fill happens when an order is completely executed. What does IOC mean in stocks? The term … Read more
