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A

The price of selling the base currency.

A report prepared annually by a company used to assess the company’s solvency and financial situation.

Refers to buying and selling the same security on different markets and at different price points.

When an investor buys more of a stock as the price goes down.

B

The currency on the left and the one we wish to buy or sell. For Example, in the EUR/USD pair, the base currency is the euro.

A trader who believes that the market will rise.

A trader who is more on the defensive side.

Market is on the rise. The longest-running bull market in U.S. stocks ended in March 2020 after 11 years as it began on March 9 2009, one of the bleakest points of the crisis’ history.

When a market experiences prolonged price decline. On average, bear markets have lasted 14 months in the period since World War II, while market corrections have lasted an average of five months. The S&P 500 index has fallen an average of 33% during bear markets in that time. The biggest decline since 1945 occurred in the 2007-2009 bear market.

A measurement of the relationship between the price of a stock and the movement of the whole market.

The stocks behind large, industry-leading companies. Blue-chip stocks offer a stable record of significant dividend payments and have a reputation for sound fiscal management. For example: Apple, Coca-Cola, Disney, IBM, Johnson & Johnson, Microsoft, Nike, Pfizer.

When the stock market is an upward trend or a period of increasing stock prices.

If an index was in an upward trend before the pennant began to form

E G H M O Q R U V Y B If an index was in a downward trend before the pennant began. Broker: A person who buys or sells an investment for you in exchange for a fee (a commission).

The amount of money a trader is willing to pay to buy a financial instrument.

An open digital distributed ledger that publicly holds records in a manner that is secure, transparent, and decentralised. A public database, blockchain is not controlled by one single entity and is made up of several ‘blocks’ or lists of transaction records that are linked to each other and are encrypted.

A trader who realizes a gain when the value of the underlying asset increases, and a loss when its value decreases.

Provide useful breakout signals that have been consolidating

C

The time at which a stock exchange closes to trading.

Companies with the biggest market capitalisation carry significant weight in the index, for example, S&P 500.

A piece of software or hardware that gives you the ability to store and exchange your cryptocurrencies. In most cases, crypto wallets are coin specific, for example, a Bitcoin wallet is only for sending and receiving Bitcoins. Wallets are encrypted and unique. Funds are sent through an encrypted message to the recipient and only the recipient’s cryptocurrency wallet can decrypt that message and thus receive the funds. Crypto wallets can either be hardware or software.

An advanced warning when an index is likely to resume its trend after a short consolidation period. This shows how far the index is likely to move in that direction.

The Japanese Candlestick trading signals consist of approximately 40 reversal and continuation patterns. All have credible probabilities of indicating the correct future direction of a price move.

E

A place in which different investments are traded. The most well-known exchanges in the United States are the New York Stock Exchange (NYSE) and the NASDAQ.

When an order to buy or sell has been completed, the trader has executed the transaction.

D

The practice of buying and selling within the same trading day, before the close of the markets on that day.

A portion of a company’s earnings that is paid to shareholders, or people that own that company’s stock, on a quarterly or annual basis. Double-tops/Bottoms: Reversal patterns that form as the price of an index hits a support or resistance level two times before the index turns around and moves in the opposite direction.

F

Statements or data releases made by countries, central banks, or other financial institutions, on topics such as the unemployment rate, manufacturing numbers, consumer spending, and many more. For example, a decrease in a country’s unemployment rate can indicate that the economy is strong, and this can lead to an increase in the local currency.

Continuation patterns that form as the price of an index pulls back from the predominant trend in a parallel channel. Flags can be either bullish or bearish, depending on what the trend was before the flag began to form.

G

Buying.

Selling.

H

An extremely thin spread between the bid and ask prices of a given stock. It can also refer to a situation in which a stock price gets reduced by a specific percentage for margin trades or other purposes.

A market milestone in which a stock or index reaches a greater price point than it had previously. Record highs can signal that a stock or index has never reached the current price point, but there are also time-constrained highs, such as 30-day highs.

Opening trade positions designed to offset losses generated by another prevailing position in a portfolio. For example: If you own shares of Amazon as an investor, you will earn profits if prices rise and you will incur losses if the prices fall. To hedge against that, you can open a short CFD position for the stock to generate profits that will offset any losses that you might incur when Amazon stock prices fall.

Reversal patterns that form as the price hits a resistance level (forming the first shoulder), then breaks through the first resistance level and hits a higher resistance level (forming the head), and then hits the first resistance level again (forming the second shoulder).

Operates offline and is also known as cold storage. It is more secure than software alternatives because it cannot be hacked and is immune to viruses or malware. Hardware wallets can host multiple cryptocurrencies.

I

A benchmark that is used as a reference marker for traders and portfolio managers. Some examples are: Microsoft (MSFT), Apple (AAPL), Amazon (AMZN), Facebook (FB), Berkshire Hathaway (BRK.A), JP Morgan Chase (JPM), Johnson & Johnson (JNJ), Procter & Gamble (PG).

The first sale or offering of a stock by a company to the public. It happens when a company decides to go public rather than remain solely owned by private or inside investors.

L

The lower price point for a stock or index.

A long position is placed when a trader expects the asset to rise or see an increase in its value over time, he, therefore, places a ‘BUY’. The trader will ‘BUY’ at a low price, and ‘SELL’ at a higher one.

M

A margin account lets a trader borrow money (take out a loan, essentially) from a broker to purchase an investment. The difference between the amount of the loan and the price of the securities is called the margin.

Shows the direction in which an index is going and where potential levels of support and resistance may be. Moving averages themselves can serve as both support and resistance.

O

The time at which people can begin trading on a particular exchange.

A trader’s bid to buy or sell a certain amount of stock or option contracts constitutes an order.

Move back and forth as the index rises and falls. Oscillating indicators can help you determine how strong the current trend is as well as when that trend is in danger of losing momentum and turning around.

P

Continuation patterns that form as the price of an index moves into a tighter and tighter consolidation range. Pennants can be either bullish or bearish, depending on what the trend was before the pennant began to form.

A collection of investments owned by an investor makes up his or her portfolio.

Companies with the highest share prices carry significant weight in the index, for example, Dow Jones Industrial Average (DJIA).

The spreads, gains, and losses are usually presented in pips. A pip is the last decimal place in an Exchange rate.

Q

Information on a stock’s latest trading price.

S

A group of stocks that are in the same industry. Some traders prefer to trade in a specific sector, such as energy, because they know the industry well and can better predict stock price fluctuations.

Any market in which shares of a particular company are bought and sold. The top 5 Stock Markets are NYSE, NASDAQ, Tokyo Stock Exchange, Shanghai Stock Exchange, and Hong Kong Stock Exchange.

Customizable when the price is hit, the order turns into a limit order with the limit price set.

Borrowing shares with the promise to return them later. A way to take advantage of stock in case the price is expected to decrease.

When a market experiences prolonged price decline. On average, bear markets have lasted 14 months in the period since World War II, while market corrections have lasted an average of five months. The S&P 500 index has fallen an average of 33% during bear markets in that time. The biggest decline since 1945 occurred in the 2007-2009 bear market.

A stock symbol is a one-to-four-character alphabetic root symbol that represents a publicly traded company on a stock exchange.

A trader who realizes a loss in case the value of the underlying asset increases, and a gain in case of a price drop.

The currency on the right and the one we use to make the transaction. For Example, in the EUR/USD pair, the secondary currency is the US dollar.

A short position is placed when the trader expects there will be a decline in the value of the assets and therefore places a ‘SELL’. The trader will ‘SELL’ at a high price and ‘BUY’ the contract once the price has fallen.

Operates online and includes a mobile application and a wallet provided by crypto exchanges.

Additional charges that incur when traders leave trading positions overnight. An overnight funding fee for traders to continue holding a leveraged position in the market past active trading hours.

Entering a position one day and then exiting several days/weeks later.

R

A rapid increase in the general price level of the market or of the price of a stock.

An advanced warning when an index is likely to turn around and begin a new trend, and how far the index is likely to move in the opposite direction.

Additional charges that incur when traders leave trading positions overnight. An overnight funding fee for traders to continue holding a leveraged position in the market past active trading hours.

U

Individual stocks carry equal weight in the index, for example, Kansas City Board of Trade (KCBT).

V

The price movements of a stock or the stock market.

The number of shares of stock traded during a particular period, normally measured in average daily trading volume.

Y

Often refers to the measure of the return on an investment that is received from the payment of a dividend.