This refers to a private forum designed for trade securities where investors have the chance of placing big orders and completing trades without the need of publicly advertising one’s intention. Also referred to as dark pool of liquidity, they are utilized by investors for block trading especially where a large number of financial instruments are […]
Results for: Day Trading Terminology
Price Target Definition: Day Trading Terminology
This is the projected price of a financial instrument as provided by an analyst and when it’s achieved, the trader is able to attain the best possible outcome from an investment. In other words, it is the price at which a trader or investor exits a trading position finally achieving his or her reward. It […]
Strike Price Definition: Day Trading Terminology
What is a Strike Price? Strike Price is the option price set on a derivative contract. It is often used in index and stock options, where the strike is listed precisely in the contract. Strike price is where security can be purchased during call options. Conversely, it is also the amount at which security can […]
Stochastic Oscillator: Day Trading Terminology
The stochastic oscillator is a momentum indicator that helps to show the current location of a security closing price relative to its high/low range. As a range bound momentum, it’s used for three things: a. Identifying overbought and oversold levels b. Spotting divergences c. Identifying bull or bear signals One thing you need to […]
Volume Profile Definition: Day Trading Terminology
This refers to an advanced charting study used to show trading activity spanning a particular trading and price levels. Also referred to as volume by price, it helps to display the amount of volume occurring at certain price levels and range as opposed to most volume indicators that display volume based on a certain time […]
Channel Pattern Definition: Day Trading Terminology
What is a Channel pattern? It is described as a price movement which utilizes support and resistance to validate what will happen in the future. As a form of trading, it capitalizes on the market tendencies to trend. This is one of the most powerful trading tools that combines different technical analysis indicators finally […]
Underlying Asset Definition: Day Trading Terminology
Underlying asset is a term that is used in the trading of derivatives, such as options on equities or stocks. Derivatives are financial instruments whose price is based on, or derived from, a separate asset. The underlying asset of a derivative is the financial instrument, such as a stock, a commodity, a futures contract, an […]
Support Level Definition: Day Trading Terminology
What is support level? This is the price level whereby demand of a security is strong enough thus preventing the decline in price. In other words, it is the level at which investors or traders jump in to buy securities while sellers become less inclined to sell their shares. According to savvy investors and traders, […]
Derivative Definition: Day Trading Terminology
Derivatives are securities with prices that are dependent on, or derived from, one or more separate underlying assets. The derivative itself is a contract between two or more participants founded on these underlying assets. Their value is determined by the fluctuation in the price of the underlying assets. The most common types of underlying asset […]
Resistance Level Definition: Day Trading Terminology
What is resistance level? This is the price level at which selling of a security is deemed strong enough to eliminate the increase in price. The resistance level is usually identified on a bar chart and it’s located at the upper levels of range bound markets. It is common knowledge that upward price actions results […]