by Henry Liverman | Apr 30, 2021 | Market Definitions
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...
by Henry Liverman | Apr 30, 2021 | Market Definitions
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...
by Henry Liverman | Apr 30, 2021 | Market Definitions
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...
by Henry Liverman | Apr 30, 2021 | Market Definitions
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...
by Henry Liverman | Apr 29, 2021 | Market Definitions
An electronic list of buy and sell orders for a specific security or financial instrument organized by price level. A order book displays the market depth, or the number of shares being offered or bid on at each price point. These lists help traders by providing...
by Henry Liverman | Apr 29, 2021 | Market Definitions
A contract that gives its owner the right (not the obligation) to buy or sell an underlying asset at a specified price prior to or on a specified date. This future, predetermined price is known as the exercise price or the strike price. The put option buyer makes a...
by Henry Liverman | Apr 29, 2021 | Market Definitions
Investment strategies that allow you to pool your money with other investors to purchase a collection of stocks or other securities that would be difficult to replicate independently. This collection is known as a portfolio. The price of a mutual fund (or the Net...
by Henry Liverman | Apr 29, 2021 | Market Definitions
A common technical analysis stock indicator, moving averages are a way to smooth out the price data of a stock by creating a constantly updating average price. When utilized, moving averages, the impacts of random, short-term fluctuations are mitigated. Moving...
by Henry Liverman | Apr 29, 2021 | Market Definitions
A liquid asset used in the settlement of transactions. Money itself functions as a medium of exchange for transactional purposes in an economy. Money can be many things, from commodities to fiat moneys to digital cryptocurrencies. It’s able to work due to the...
by Henry Liverman | Apr 28, 2021 | Trading Journals
Learning the Markets Being a millennial, I remember when cryptocurrencies started taking off. I never put too much stock in them. It seemed that digital currencies (particularly BTC) was only used for sketchy or nefarious purposes in the darkest recesses of the...
