A modern method of trading that makes use of powerful computers and rapid programs to transact a large number of trading orders in a fraction of a second. Generally, traders with the fastest processing speeds are the most profitable. HFTs utilize complex algorithms...
Japanese for “average pace,” Heikin-Ashi candlesticks utilize the open-close data from the previous period and the open-high-low-close data from the current period to create one single combination candlestick. The goal is for the resulting candlestick to...
A portfolio of stocks or bonds intentionally designed to match the makeup and performance of a financial market index. Based on the theory that over time the market will outperform any single investment, an index fund aims to match the risk and return of the market...
The IMF (or International Monetary Fund) is an organization comprised of 190 member countries working to ensure international monetary stability. Established in 1945, the IMF facilitates both the expansion and balanced growth of international trade, promotes stable...
A visual rendition of the supply and demand of a specific asset. A depth chart displays both buy and sell orders of an asset to allow a trader or investor to determine how much of the asset they can sell at a particular price.
An alternate means of investing that make use of non-traditional and varying investment strategies for a restricted (and often high-income) client pool. In terms of legality, hedge funds are set up as investment limited partnerships open to a limited number of...
In trading, hedging is opening a position that runs contrary to an existing position. The main reasons to hedge a position are to protect profit and for short-term gains. Many brokers and traders hedge themselves and their positions as a way to manage risk and to...
An agreement to buy a specified asset on a specified date for a specified price. Future contracts are sold on a futures market and are a common practice in day trading. A futures contract can be fulfilled by either cash or physical delivery of a commodity or asset. ...
