by Henry Liverman | Apr 15, 2021 | Market Definitions
A form of money that lacks value in-and-of itself (ie, it is not backed by gold, silver, copper, etc). In contract to commodity money, the value of fiat money is based on supply and demand as well as the credit of the issuing institution. The money of the United...
by Henry Liverman | Apr 15, 2021 | Market Definitions
A form of moving average (or a stock indication commonly used in technical analysis) that applies more significance on more recent data points. This means that it reacts more significantly and noticeably to price changes than a simple moving average, which applies...
by Henry Liverman | Apr 15, 2021 | Market Definitions
The profit (or loss) that an investor anticipates based on how an asset has behaved historically. Investors are able to determine these patterns based on the historical Rates of Return. This figure is calculated by multiplying a potential outcome by the odds of that...
by Henry Liverman | Apr 15, 2021 | Market Definitions
A marketplace where securities, commodities, and other financial instruments are traded. It creates a central platform for traders (from businesses to governments) to sell securities to public investors. One of the most well-known examples is the New York Stock...
by Henry Liverman | Apr 15, 2021 | Market Definitions
A form of money whose value comes from the material it’s made out of (ie, the commodity). Traditional examples of commodity money are gold, silver, cocoa beans, tea, and tobacco. Commodity money is made of objects that have a value themselves (or an intrinsic...
by Henry Liverman | Apr 14, 2021 | Market Definitions
An Exchange-Traded Fund is a fund made up of a group of assets that can be purchased all at once (ie, without having to buy each component individually). Unlike mutual funds (which are only priced at the end of the trading day), ETFs can be bought and sold throughout...
by Zach | Apr 14, 2021 | Candlestick Charts
Doji candlesticks are one of the most famous types of candlesticks for good reason. Japanese candlesticks are the basic building block of most technical analysis. That makes the ability to recognize different candlestick types a crucial trading skill. First though,...
by Henry Liverman | Apr 14, 2021 | Market Definitions
An occurrence when large groups of a security are sold gradually in smaller groups to increase the amount of sell orders on the market for a security, thus lowering its price. The method of securities being sold this way is often simply referred to as...
by Henry Liverman | Apr 14, 2021 | Market Definitions
A bearish chart pattern indicating that downward momentum is building. A descending triangle is created by connecting one trend line that connects a series of lower and lower highs and a second line that connects a series of lows. The traders then take note of when...
by Henry Liverman | Apr 13, 2021 | Market Definitions
A security that derives its value from an underlying asset or benchmark. Derivatives have many uses in trading, such as hedging a position, speculating on the future movement of an asset, or even to give leverage to a holding. The value of a derivative is dependent...
