by Henry Liverman | Apr 21, 2021 | Market Definitions
A global marketplace where national currencies are exchanged against each other. A combination of the words “foreign exchange,” it functions by changing one currency into another. This is done for the purposes of commerce, trade, or tourism. In trading,...
by Henry Liverman | Apr 21, 2021 | Market Definitions
A payment to stockholders who own a specific stock. Some companies distribute part of their earnings directly to shareholders in the form of money or additional stock. This payment is referred to a dividend. Not all companies pay out dividends. They’re a...
by Henry Liverman | Apr 20, 2021 | Market Definitions
A technique used by traders and investors to reduce risk of loss. It is done by allocating investments across many different industries, companies, or even financial institutions. It simply indicates a wide variety of investments within a portfolio, thus ensuring if...
by Henry Liverman | Apr 20, 2021 | Market Definitions
A technical analysis pattern used as part of the Accumulation/Distribution Indicator (A/D). A bullish stock will display strong signs that it’s being accumulated (of showing a high level of demand). The opposite is also true in that a bearish stock will show...
by Henry Liverman | Apr 20, 2021 | Market Definitions
A portmanteau of “decentralized finance,” DeFi is an umbrella term various decentralized cryptocurrency and blockchain projects aiming to disrupt financial intermediaries. DeFi is different from a cryptocurrency using a blockchain model (eg, bitcoin) in...
by Henry Liverman | Apr 20, 2021 | Market Definitions
When investors surrender previous gains by selling their positions on a security during periods of market decline. A bear market is often a major contributing factor to capitulation. In theory, many capitulations should signal the end of a bottom, as if many are...
by Henry Liverman | Apr 19, 2021 | Market Definitions
A Chaikin Money Flow (or CMF) is a technical analysis indicator that is used to measure the Money Flow Volume over a set time-period. Money Flow Volume is a metric used to determine the buying/selling pressure on a security for a single defined period. Any period...
by Henry Liverman | Apr 19, 2021 | Market Definitions
A situation that arises when speculators are willing to pay a futures price that is greater than the expected price of that commodity at the same future point. This is also referred to as a “normal market” or a “carrying-cost market.” The...
by Henry Liverman | Apr 19, 2021 | Market Definitions
Trading assets are collections of securities intended to be sold for a profit. They are different from investments and generally held in a separate account than the investment portfolio. Examples of a trading asset are forex rate contracts, mortgage-backed...
by Henry Liverman | Apr 19, 2021 | Market Definitions
The accumulation/distribution indicator (or A/D) is a cumulative indicator used to provide insight into how strong a trend is. It uses volume and price to determine if a stock is under accumulation or distribution. If the price is rising but the indicator is...
