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. ...
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,...
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...
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...
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...
