Seller

A seller is an individual or entity that exchanges any type of good or service in return for payment. In financial markets, the seller is the investor who gives up his/her investment to the buyer in return for payment. Individual investors sell everything from equities and options to commodities and currencies – and much more. In […]

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Execution

An execution is the completion of buy or sell order for a security. The execution of an order happens when it is completely filled, not when it is placed by the investor. When the investor places the trade, it goes to a broker, who then determines the best way for it to be executed. Brokers are […]

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Simple Moving Average (SMA)

A simple moving average (SMA) is an arithmetic moving average calculated by adding the closing price of the security for a number of time periods and then dividing it total by the number of time periods. A simple moving average is customizable in that it can be calculated for a different number of time periods, simply by adding […]

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Resistance (Technical Level)

Resistance level is a price point on a bar chart for a security in which upward price movement is impeded by an overwhelming level of supply  for the security that accumulates at a particular price level.  Resistance levels are characteristically found at the upper levels of range bound markets. They may be very short lived, […]

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Cross Hedge

A cross hedge is  the act hedging ones position by taking an offsetting position in another good with similar price movements. A cross hedge is performed when an investor who holds a long or short position in an asset takes an opposite (not necessarily equal) position in a separate security, in order to limit both […]

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Hedge

A hedge is an investment to reduce the risk of adverse price movements in an asset. Normally, a hedge consists of taking an offsetting position in a related security, such as a futures contract. There is a risk reward trade-off inherent in hedging while it reduces potential risk, it also chips away at potential risk.  […]

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Technical Analysis

Technical analysis is a trading tool employed to evaluate securities and attempt to forecast their future movement by analyzing statistics gathered from trading activity, such as price movement and volume. Unlike fundamental analyst who attempt to evaluate a security’s intrinsic value, technical analysts focus on charts of price movement and various analytical tools to evaluate […]

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Manual Trader

A trader who manually enters trades into a trading system without using computerized algorithms that enable automated order entry. In the frenetic world of trading, manual traders may be at a disadvantage compared to traders who use considerable computing power to exploit pricing anomalies in the markets. Also, manual traders may be more susceptible to trading […]

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