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...
by Henry Liverman | Apr 28, 2021 | Market Definitions
Established in 1952, Modern Portfolio Theory (MPT) argues that a single investment’s risk and return characteristics shouldn’t be viewed alone. Rather, they should be analyzed based upon how the investment affects the health of the overall portfolio in...
by Henry Liverman | Apr 28, 2021 | Market Definitions
The simplest of the order types, a market order is a buy or sell order to be executed immediately at the current market prices. As long as there are sellers and buyers, the market order is filled. Marker orders are used when certainty of execution is a priority over...
by Henry Liverman | Apr 28, 2021 | Market Definitions
A market participant or member of a firm or exchange that also buys and sells securities for its own account at prices it displays in its exchanges own trading system. The objective of the market maker is to profit from the bid-ask spread, or the amount the ask price...
by Henry Liverman | Apr 28, 2021 | Market Definitions
Markets tend to move in a cyclical trajectory, marked by 4 phases. First is the accumulation phase where the market has bottomed and is marked by early investors seeing an opportunity to buy assets cheaply or jump on a growing trend. Next is the mark-up phase, where...
