Category: Terminology

A position opened with a buy order with the expectation price will move higher.

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.

A stop loss is a predetermined price point to exit a trade at a loss. The stop loss is used to manage risk.

A profit target is a predetermined price which to exit a position at a profit.

A market order is an order placed at the current market price.

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.

The number of shares traded during a period. This is typically measured in average daily value.

A moving average is an indicator that shows a stock’s average price per share during a specific period.

An exchange is where traders and investors buy and sell stocks. The New York Stock Exchange and Nasdaq are examples.

A group of stocks in the same industry belong to the same sector. Examples tech stocks, energy stocks, and financial stocks.