Definitions with S
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What is Stop Out and How to Avoid One?Stop Out is a critical term in the world of trading, especially on platforms like TradeLocker. It refers to a protective measure where your broker automatically closes your open positions. Stop Out Level is when your Margin Level falls to a specific percentage (%) level in which one or all of your open positions are […]Read more
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Short SqueezeShort selling aims to profit from a stock’s decline in value. This strategy involves borrowing a security from your brokerage, which you believe will decrease in price, and selling it on the open market. The goal is to buy the same stock back later at a lower price than what you sold it for. The […]Read more
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What is a Ticker SymbolWhat is a Ticker Symbol? A stock ticker symbol, also known as a stock symbol or ticker, is a unique series of letters assigned to a security for trading purposes. It’s basically a shorthand way of describing a company’s stock. Stocks listed on the New York Stock Exchange (NYSE) can have up to four letters, […]Read more
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What is a Stop Loss OrderWhat Is a Stop-Loss Order? A stop-loss order is a risk management tool for traders and investors. It involves setting a predetermined price level, and if the investment’s price reaches that level, the order automatically exits the position, limiting potential losses and reducing overall risk in the trade. This helps traders control their losses in […]Read more
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What is Stop Limit OrderA stop-limit order is a strategic method employed by traders to minimize risks associated with stock trading. This approach involves setting two key prices: a stop price and a limit price. The stop price is essentially a trigger point; it’s the specified price at which the order to buy or sell a stock is activated. […]Read more
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Short SellingWhat’s Short Selling? Short selling is a strategy used by traders who anticipate that a stock’s price will decline. In this approach, a trader borrows shares from a broker and sells them on the market at the current price. Here’s how it works: You borrow shares of a stock from a broker and sell them. […]Read more
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What is Short HedgeWhat’s a Short Hedge? A short hedge is a way to protect against the chance that the price of something you own, like a stock or commodity, will go down in the future. It’s like an insurance policy for investments. Companies and investors use this tactic to lock in a sale price for something they’ll […]Read more