Prospectus

An official document companies must file with Securities and Exchange Commission (the SEC) as part of a registration process in order to provide an investment offering to the public.  They’re filed for stocks, bonds, and mutual funds.  These documents assist...

Price Range

Also referred to as a trading range.  This occurs when a security trades within consistent high and low prices for a period of time.  The top of the range provides price resistance, while the bottom provides price support and the value of the security fluctuates...

Perpetual Contract

A variation of a futures contract, a perpetual futures contract (or perpetual swap) is an agreement between two counterparty traders to buy or sell an asset at a non-specified point in the future.  They differ from traditional futures contracts in that there is no...

Oversold

The opposite of “overbought,” oversold refers to a security that is trading at a lower price and has the potential to bounce back.  Oversold conditions don’t necessarily mean that a bounce-back is imminent, however.  They can last for a long time, so...

Overbought

When a security is believed to be trading at a level above what it should be valued, it is referred to as “overbought.”  A pre-assumption with overbought stocks is that the upward movement is a short-term phenomenon and that the market will correct the...