by Henry Liverman | Apr 27, 2021 | Market Definitions
The opposite of a short trade, a long position occurs when a trader has purchased an asset they are waiting to sell when the price goes up. “Long” is also used to specify an open trading position, meaning the buyer currently owns shares in an...
by Henry Liverman | Apr 27, 2021 | Market Definitions
Limit Order – A type of order to buy or sell a security at a specified price or better. For buy limit orders, the order will only be executed at the specified limit price (or a lower price). For sell limit orders, the order will only be executed at the...
by Henry Liverman | Apr 27, 2021 | Market Definitions
Using borrowed funds to increase a trading position beyond what cash alone could buy. In brokerage firms, leverage is used in the form of margin trading (where the margin is the minimum amount required to execute a trade utilizing leverage). Essentially, leverage is...
by Henry Liverman | Apr 27, 2021 | Market Definitions
A facet of technical analysis that looks to the past rate of return of a bond, stock, security, index, or fund to predict possible future data points within the standard deviations. Historical returns may also be used by analysts to predict future price returns or to...
by Henry Liverman | Apr 26, 2021 | Market Definitions
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...
by Henry Liverman | Apr 26, 2021 | Market Definitions
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...
