Whenever you enter the stock market scenario, it is best to have the basic terms in your memory so you can remember it at time 11. There are many terms that a merchant uses when he / she is in the race. We must memorize, not all, but those that are really important. Here we will show some of the terms you must know before becoming a millionaire or just nothing … you know what.
Bear Market: Every time the market is going down, it is necessary to say that it is in bearish trend or that it is a bearish market. It does not mean that you have to do something with a bear, but a defined term to define the real situation of the current market trend.
Bull Market: It is opposed to the Bear market. When the stock market increases for a long period, it is bullish or bullish marketplace.
Averaging Down: When an investors buys more stock, it results in decrease in the average buying price
Beta: The stock price and the total movement of the market is called Beta. This means that the story has 1.5 beats, that is, according to each movement, the stock moves 1.5 points.
Day Trading: Before the market closure, the day of purchase and sale is a trading day. Every day traders who want to make traders or lose traders are called “active traders” or “day traders”.
Blue Chip Stocks: Blue chip stock is a large level, well reputable and financially strong company, it often had a good hold on marketplace, there are big businesses that have a steady record of extra payments and have a good reputation for yearly management. One of these are Blue Chip Stock and it’s originated from blue gambling chips, which are the most significant chips used in casinos in Las Vegas.
Dividend: This is the portion paid to people who owns stock either the quarterly or yearly basis.
Hedge: It is the term used to limit your loss by taking offset position e.g. if you have 50 stocks of any company, you could squat the stock futures the position of stock too.
Exchange: This is the place where different investors are trading. Most well-known in the USA is NYSE and the NASDAQ.
Execution: In order to finish your purchase / sale, for example, you have made 100 shares to sell, 100 shares have been sold.
Margin: Any margin account allows a person to obtain the money taken out as lend basically from a dealer to purchase an asset. The variance between an amounts of lend and price of any security is known as Margin.
Order: The buyer or buyer of shares or options contracts is called a request. You want to buy or sell.
Portfolio: A group of investments owned by any stockholder.
Quote: Any information about the last price of a trade can be delayed for 20 minutes it is said to be Quote.
Rally: It is a period of time in which the prices of stocks, bonds or indexes continuously increases, this sort of increase can also bear the marketplace
Sector: When there are more than one stocks in the same business place, it is known as sector such as Samsung and apple.
Spread: It is the difference of prices for immediate sale or immediate purchase.
Stock Symbol: It is used to identify or find the shares that are publically traded, I may contains symbols, alpha numeric characters
Volatility: This is the value movement of a stock market as a whole. High daily rates are very unstable stocks and the downward movements are low volatility and the wide degree of trading within the day is volatility.
Yield: It is the ratio of annual share receivers divided in such a way that all of them receives the same share price, a stock giving out 1$ in dividends are currently trading in 25$
Volume: it is the number of stock that is shared during some time period measured in normal daily volume of trading.
We have learned so much now that it is time to apply the knowledge that you have taken from us and become a great trader of a day… Happy trading!