The tick index is an important indicator used for determining overbought and oversold conditions for active traders. It is calculated by taking all the stocks on NYSE that have had an uptick minus all the stocks that had a down tick and then the result is displayed on a chart based on your preferred time […]
Results for: Day Trading Terminology
Short Interest Definition: Day Trading Terminology
Short interest is a term that shows how many shares are short compared to the float and can also be displayed as a percentage called the short percent of float. It is important to understand and know when trading a stock because it can play a huge role in how much a stock can move. It […]
Order Routing Definition: Day Trading Terminology
With the advent of Direct Market Access (DMA) there are now ways for traders to gain access directly to market makers and ECNs and bypass gateways from standard brokers that take more time for you to get an execution. There are a ton of different order routes to choose from but we have found ARCA and […]
Market Capitalization Definition: Day Trading Terminology
Market Capitalization, better known as Market Cap, is a measurement used to classify a company’s size, which can be categorized between small, medium or large cap with sub-categories from there. It is a simple calculation that takes the stock price and multiplies it by the number of outstanding shares. Understanding what the market cap is […]
After Hours Trading: Day Trading Terminology
What is After Hours Trading Most traders trade during normal trading hours, which is 9:30am EST to 4:00pm EST for US markets, however, trading does occur outside these hours in the after hours trading session. After hours trading is trading that occurs after the market closes at 4:00pm EST and can run to as late as […]
Binary Option Definition: Day Trading Terminology
Over recent years traders have started hearing about a new trading product, but there are many questions and concerns about what they are and how they work. Binary Options are a type of derivative that are considered an “all-or-nothing” asset and is comparable to placing a bet on a sports game. When you purchase a Binary […]
Proprietary Trading Definition: Day Trading Terminology
Proprietary trading occurs when a company risks their own capital to trade stocks, currencies, commodities or other financial instruments for financial gain. This is different than hedge funds or investment firms that trade on behalf of their clients and make money through commission, profit sharing and fees. Most proprietary trading occurs at big banks and […]
Penny Stock Definition: Day Trading Terminology
According to the SEC, penny stocks are considered to be any stock trading below $5 per share whether they are listed on an exchange or trading through the Over The Counter Bulletin Board (OTCBB) or pink sheet markets. Penny stocks, often referred to as microcap or even nanocap stocks, are usually smaller or newer companies with […]
Floor Trader Pivots Definition: Day Trading Terminology
Floor trader pivots are one of the more popular pivot levels for active traders and are commonly used by floor traders in the trading pits. The pivot points are calculated by using the previous days high, low and closing prices for establishing key intraday resistance and support levels. There are tons of pivot calculators that can […]
Gap Definition: Day Trading Terminology
Gaps form on charts when there is a big price movement with no trading in between. This usually happens over night when news comes in and pushes the prices of a stock higher or lower than the previous days close. This is caused by a major difference in supply or demand usually caused by a […]