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Terms Dictionary

Trading

8 definitions in this topic

52-Week Range

The highest and lowest prices a security has traded at over the past year, used as a quick gauge of momentum and value.

After-Hours Trading

Buying and selling of shares outside the regular exchange session, typically with thinner liquidity and wider spreads.

Arbitrage

Profiting from a price difference for the same asset in two markets by buying in the cheaper one and selling in the dearer one.

Day Trading

Opening and closing positions within the same session to profit from intraday price moves.

Limit Order

An instruction to buy or sell only at a specified price or better, giving price control but no fill guarantee.

Margin Call

A broker's demand for additional funds when the equity in a leveraged account falls below the required minimum.

Short Selling

A trading strategy in which an investor borrows shares and sells them, hoping to buy them back later at a lower price to return to the lender and profit from the decline.

Stop-Loss Order

A standing instruction to sell once a security falls to a set price, capping downside on a position.