What Is Algorithmic Trading? Algorithmic trading is when you use a computer program that follows specific instructions to make trades faster than a human ever could. Instructions for these trades are based on timing, price, quantity, or a mathematical model. Algorithmic trading makes the market run smoother and trading more systematic by taking out human […]

What Is Ask Size? The ask size is the quantity of a security that a market maker offers to sell at the ask price. A higher ask size indicates more supply available for sale. When a buyer wants to purchase, they can accept the ask price. They can buy up to the ask size at […]

What Is Arbitrage? Arbitrage is the simultaneous purchase and sale of the same or similar asset in different markets in order to profit from tiny differences in the asset’s listed price. It exploits short-lived variations in the price of identical or similar financial instruments in different markets or in different forms. Arbitrage exists as a […]

What Is a Bull Trap? A bull trap is a deceptive signal in the financial markets, tricking traders into thinking an asset’s price will rise when it’s actually set to decline. This phenomenon often follows a rally that breaks prior support levels, trapping traders who acted on the apparent buy signal. The term can also […]

What’s a Bull Market? A bull market is when prices in the stock market keep going up, and everyone thinks they’ll keep rising. This term isn’t just for stocks, though—it can also be about bonds, real estate, currencies, or commodities. These good times can last months or even years. Quick Facts on Bull Markets People […]

What’s a Bull Investor? A bull is someone who bets on the stock market going up. They buy stocks and other securities thinking they can sell them for more money later. Bull Investors Explained Bull investors pick stocks or sectors they believe will grow in value. They’re the optimists of the investment world, always on […]

What’s a Budget? A budget is like a plan for your money. It helps you figure out how much money you have, what you need to spend it on, and what you can save or spend on other things. It’s not just for people who need to watch their pennies—everyone can benefit from having a […]

What Is a Breakout? A breakout is when an asset’s price surpasses certain thresholds, such as resistance or support areas. This indicates a potential trend shift. For instance, if there’s an upward movement from a chart pattern, it may hint at an uptrend. High-volume movements signify strong conviction. A breakout happens when the price of […]

What Is a Blue Chip Stock? A blue chip stock is a share from a big, rock-solid company known for its ability to make money and pay dividends to its shareholders. These companies have been around for ages, are leaders in their fields, and are often names you hear every day. Investors like blue chip […]

What Is A Candlestick? A candlestick chart displays an asset’s high, low, open, and closing prices for a specific time frame. Japanese rice traders first used it to monitor market prices and momentum before it gained popularity in the United States. The chart’s “real body” shows whether the closing price was higher or lower than […]

What Is an Economic Indicator? An economic indicator is data that analysts use to gauge current or future investment opportunities. It also reflects the health of an economy. Specific data like the Consumer Price Index (CPI), Gross Domestic Product (GDP), and unemployment rates are commonly used indicators. Types of Economic Indicators Investors look forward to […]

What Does HODL Mean? HODL comes from a misspelled word “hold.” It refers to buying and retaining cryptocurrencies like Bitcoin. The term has also come to signify “hold on for dear life” for crypto investors. A 2013 Bitcointalk forum post first introduced the term. Back then, Bitcoin was unstable, swinging from just over $130 in […]

What is Stop Out? The term Stop Out in trading refers to the automatic closing of positions by a broker when the trader’s margin level falls below a predetermined threshold. It acts as a safety mechanism to minimize the risk of further losses and to protect both the trader and the broker. When a trader […]

What Is a Stop-Loss Order? Traders use a stop-loss order to limit loss or secure a profit on a current position. This order helps manage risk. A stop-loss order instructs to close a position by buying or selling a security when it hits a specific stop price. This differs from stop-limit orders. Stop-limit orders specify […]

What Is a Stop-Limit Order? A stop-limit order combines the features of a stop order and a limit order to mitigate risk. It relates to limit orders and stop-on-quote orders. How Stop-Limit Orders Work The trader controls precisely when the order fills, but execution isn’t guaranteed if the stock doesn’t hit the stop price. A […]

What’s Short Selling? Short selling is when you bet that a stock or another security will drop in price. It’s a pretty advanced move and not for beginners. Here’s how it works: You borrow shares of a stock from a broker and sell them. Later, you hope to buy the same number of shares back […]

What’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 […]

What’s Volatility? Volatility tells you about the stability of a stock or market. High volatility means the price is very changeable. If it’s low, the stock or market price is more stable. Imagine a stock’s price bouncing up and down rapidly over a short period—that’s a sign of high volatility. When prices stay more or […]