A position opened with a buy order with the expectation price will move higher.
Tag: terminology
Bull VS Bear Market
A bull market is when the price of a security is ascending and trending higher.
A bear market is when the price of a security is descending and trending lower.
Stop Loss Order
A stop loss is a predetermined price point to exit a trade at a loss. The stop loss is used to manage risk.
Profit Target Order
A profit target is a predetermined price which to exit a position at a profit.
Market Order
A market order is an order placed at the current market price.
Limit Order
A limit order is a willing to buy or sell a stock at a specific price. If the current price is $75 a trader can place a limit order to buy at $70.
Volume
The number of shares traded during a period. This is typically measured in average daily value.
Moving Average
A moving average is an indicator that shows a stock’s average price per share during a specific period.
Exchange
An exchange is where traders and investors buy and sell stocks. The New York Stock Exchange and Nasdaq are examples.
Sector
A group of stocks in the same industry belong to the same sector. Examples tech stocks, energy stocks, and financial stocks.