A share buyback refers to a process where a company initiates the purchase of its shares thus reducing the outstanding shares in the open market. Also referred to as repurchase, it is a program whereby a company purchases its shares from the marketplace since the management has found out that the shares are undervalued. The […]
Results for: Day Trading Terminology
Inverted Hammer Definition: Day Trading Terminology
An inverted hammer is a technical indicator that is used to identify potential bottoms to downtrends that promise a quick turnaround in the near future. It is the opposite of the widely used hammer indicator, which is employed to identify the top of trends and follows the same basic reasoning. Inverted Hammer Details The inverted […]
CFD Account Definition: Day Trading Terminology
CFD account or Contract for Difference refers to an agreement provided in a futures contract which stipulates how differences in a settlement should be completed that is via cash payments and not through delivery of goods or assets. It is considered as one of the easiest methods of settlement since gains and losses are […]
Warrant Definition: Day Trading Terminology
Warrant Definition: Day Trading Terminology A warrant is an equity derivative that shares many of the same characteristics with options, but with a few key differences. Just as in the case of a standard equity option, a warrant provides the holder with the right, but not the obligation, to buy a stock at a specified […]
Doji Candle Definition: Day Trading Terminology
Doji refers to a candlestick pattern that opens and closes at or near the same price with shares typically moving above and below the opening price to form wicks on either side. The pattern commonly appears at the bottom and at the top of trends. As such, it is used to signify the possibility of […]
Partial Fill Definition: Day Trading Terminology
A partial fill is a trade execution where some but not all of a trade order is filled at the desired price. Partial fills occur when using limit orders, as these orders will only execute when the price is within the defined range, and the price may only enter that range for too low a […]
Hammer Candlestick: Day Trading Terminology
A hammer candlestick is a chart pattern used in technical analysis to identify a potential reversal in a security that has been in a downtrend. The hammer candlestick is generally seen as a short term technical indicator, and is most often used by active traders. Hammer Candlestick Components The hammer candlestick gets its name from […]
Good Till Canceled (GTC) Order: Day Trading Terminology
According to the SEC, a Good Till Cancelled order refers to a buy or sell request designed to last until the order is canceled or executed. The order can be made by an investor looking to purchase or sell a security at a certain price. This type of order has been found to offer an […]
Dollar Cost Averaging Definition: Day Trading Terminology
Dollar Cost Averaging or DCA is a technique used in investment that allows traders and investors to purchase fixed dollar amounts of a specific investment vehicle. In this case, it is common for the trader to purchase a large quantity of shares when the prices are low and lesser shares when the price is higher. […]
Fill Or Kill (FOK) Definition: Day Trading Terminology
A fill or kill, FOK, order is a type of execution order that can be placed with a brokerage for the buying or selling of a security. When the brokerage receives the order, it either executes the order for the entire quantity at the desired price (or less) or it cancels the order completely without […]