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Ask price

The asking quoted price, also known as the offer price, is the price a seller wishes to accept in exchange for a trading instrument. The ask price will fluctuate depending on the liquidity of the...

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Bar Chart

A bar chart displays price changes within a specified period of time. This chart consists of several bars, each of which alone represents the four prices during a specified time period: initial (open), maximum (high),...

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Bear Market

The bear market is a market in which the price of securities falls by about 20% or more compared to the recent maximum prices. In general, the bear market refers to a general decline in...

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Beta Coefficient

The beta coefficient is a measure of the volatility of an individual stock in comparison to the volatility of the entire market. Beta coefficient calculates the expected return on an asset considering systematic risk of...

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Bid Price

The quoted bid price is the price a buyer is willing to accept in exchange for a trading instrument. The bid price will fluctuate depending on the liquidity of the specific market the trade is...

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Bid-Ask Spread

The bid-ask spread is the difference between the bid price for a security and its ask price (or offer). It represents the difference between the highest price a buyer is willing to pay (bid) for a security and the...

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Break-Even

A break-even point is an amount in dollars or units that an asset must be sold to cover its acquisition, maintenance, production, and supply costs.  The break-even price for a home is the price at...

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Breakout

A breakout of a trading instrument refers to a time when the price of a trading instrument enters the top of a resistance area or the bottom of a support zone with a large volume....

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Buy to Cover

Buy to cover refers to a purchase order on an open pre-sale asset position that results in its closure. This is also known as selling short. A buy order is used to enter and open...

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CFD Contract

Contract for Differences (CFDs) occur for financial derivatives transactions, where the difference between the settlement price of opening and closing transactions is settled in cash and there is no physical delivery of goods between the...

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Candlestick Chart

Candlestick charts are rectangular in shape, similar to that of a candlestick, which have been popular for hundreds of years thanks to Japanese traders. Candlesticks depict a wave of price movement over a specified period...

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Channel

A trading channel is the distance between two "almost" parallel lines that shows the trading range between the support areas and the dynamic resistance of a financial instrument on a price chart. This visual depiction shows...

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Close of a trading day

The close of a trading day indicates the end of the official designated trading time in an exchange. The New York Stock Exchange (NYSE) close of a trading day is iconically signaled by ringing a bell on...

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Commodities Trading

In commodities markets, trading or buying and selling of goods is often done through futures contracts and in commodity exchanges, which are responsible for standardizing the volume and minimum quality of the goods exchanged. The...

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Market Correction

In trading, a market correction is when the price of a financial instrument declines from 10% to 20% of its highest recent price. In finance, market corrections can also be known as technical corrections. Market...

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Correlation Coefficient in Trading

Correlation Coefficient in Trading   Correlation is a statistical comparison of the extent to which two variables move in relation with each other. In the context of trading in the financial markets, correlation shows the extent...

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Day Trading

In the past, only people who worked for companies, brokerages and financial institutions could trade in the stock financial markets. But with the advent of the Internet and online trading systems, brokerages have also made...

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Trading Commissions

The cost of services provided by a broker or advisor for buying or selling financial instruments or providing advice is called trading commission. Trading commissions are commonly based on the volume of financial instruments bought...

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Buy

Buy is a word that can be used in a variety of circumstances. In the investing world, it includes the following:  1. Obtaining ownership of a good or service in exchange for payment, either in...

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Bull Market

The bull market refers to a financial market associated with a financial instrument in which prices are constantly rising or we expect growth in their prices. The word bull market is often used to refer...

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Stockbroker

A stockbroker is a person who receives a fee or commission to carry out and execute a purchase or sale transaction on behalf of an investor or trader. In addition to executing buy or sell...

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