Assest
A financial instrument like stocks, forex, or commodities.
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| Term | Definition |
|---|---|
Assest | A financial instrument like stocks, forex, or commodities. |
Bid | The highest price a buyer is willing to pay. |
Ask/Offer | The lowest price a seller is willing to accept. |
Spread | The difference between the bid and ask price. |
Liquidity | How easily an asset can be bought or sold without affecting its price. |
Volatility | The speed and severity of price fluctuations. |
Portfolio | The collection of investments owned. |
Bull Market | A market characterized by rising prices. |
Bear Market | A market characterized by falling prices. |
Long/Going Long | Buying an asset expecting its value to rise. |
Short/Short Selling | Selling borrowed assets expecting the price to fall, to buy back later at a lower price. |
Market Sentiment | The overall attitude of investors towards a market, indicating if they are bullish or bearish. |
Market Order | An order to buy or sell immediately at the current best available price. |
Limit Order | An order to buy or sell at a specific price or better. |
Stop-Loss | A risk management tool designed to limit a loss on a position. |
Leverage | Using borrowed money to increase potential returns, which also increases risk. |
Margin | The deposit required to open and maintain a leveraged position. |
Volume | The number of shares or contracts traded during a specific time. |
Alpha | A measure of an investment's performance compared to a market index. |
Beta | A measure of an asset's risk in relation to the overall market. |
Candlestick | A chart type showing the high, low, open, and close prices for a period. |
Arbitrage | Simultaneously buying and selling an asset to profit from price differences in different markets. |
Day Trading | Buying and selling assets within the same trading day. |
Averaging Down | Buying more of a stock after its price has dropped to lower the average purchase price. |
Pump and Dump | A fraudulent scheme to inflate a stock's price through false, misleading, or exaggerated statements. |
Capital Gain | Profit from selling an asset for more than its purchase price. |
Cut Loss | Selling an asset at a loss to prevent further decline in value. |