pattern day trader rules: (see complete definition) the pattern day trader (pdt) rule states that if a trader takes 3 or more day trades in a 5 day period, they are a day trader and they must maintain a minimum account balance of $25,000 usd. this means traders think the price of stocks or a specific stock will be going down. this means they have a “long” position and expect the stock to go up. the shares have been borrowed from the broker to sell in advance, with the intention of buying the shares back in a short period of time. that means traders short at the ask price, and have to wait for a buyer to buy the shares they are trying to sell short. the advantage is that in theory you could buy a contract to buy 1mil shares, even if there were only 100k shares available to buy at that price at the time. in the case of 4x leverage with a $100k cash balance, you have $400k in buying power. bid price: (see complete definition) the bid price is the price traders are currently bidding a stock at.
returning to the idea of an island, arca (short for archipelago), is a popular route. volume: (see complete definition) volume is a measure for the number of shares traded. limit orders: (see complete definition) a limit order is when you ask your broker to buy you shares and state the most you are willing to pay. this is the type of trading most day traders will practice. if the chart is a daily chart you will see that each bar represents a single day in time. moving averages: (see complete definition) moving averages are a technical indicator that tell us the average price of a stock over a period of time. average true range: (see complete definition) the average true range is a trading term used to the measure the volatility of a stock or index and tells us the average price range a stock typically trades in. as a provider of educational courses, we do not have access to the personal trading accounts or brokerage statements of our customers. day trading is a high risk activity and can result in the loss of your entire investment.
alpha is a measure of the performance of an investment in relation to a benchmark index. the most common form of bond yields – annual yield on a fixed income security – is determined by taking the annual coupon payouts and dividing them by the market price of the bond. book value is the total value of the net assets of a company attributable to – or owned by – shareholders. they concern both the willingness and the capacity of a company to meet its financial obligations as they fall due and thus the relative likelihood of a corporate default event. deflation is a process over which the nominal prices of goods and services drop. dividend cover is a financial metric that divides the earnings per share of a firm by the dividend per share paid out to shareholders. it is the potential reward offered for taking the risk of investing in shares. the price earnings ratio, commonly known as the p/e ratio or sometimes per, is the ratio of a company’s share price relative to its earnings per share (eps). the sortino ratio is a means for traders and investors to gauge the risk-adjusted performance of their portfolios or strategies. debt to equity ratio the debt to equity ratio of a company is simply its level of debt (any type of borrowed money) divided by equity (the shareholders’ money in the business).
flotation / ipo a flotation is the process of launching a company on to the stock market for the first time by inviting the general public and investment institutions to subscribe for shares. initial public offering (ipo) an initial public offering (ipo) is the process of launching a firm on to the stock exchange for the first time by inviting the general public and financial institutions to subscribe for shares. limited company a limited company is one in which the liability of the shareholders is limited to what they have put in to the company. money laundering money laundering is a catch-all term for any activity that tries to convert the proceeds of crime into legitimate money. option an option is simply the right to buy (a ‘call’ option) or sell (a ‘put’ option) a quantity of any asset by an agreed expiry date for a fixed (‘strike’) price. price to cash flow ratio the price to cash flow ratio (pcf) is a measure of the market’s expectation of a firm’s future health. return on capital return on capital is one of the most useful ratios when it comes to measuring the performance of a company. social trading social trading is the sharing of trading news and ideas over a social network to empower all traders. treasuries a government bond is an iou issued by the central bank, which it guarantees to repay at a given date. withholding tax a withholding tax requires a person or company making a payment to someone else to withhold part of the payment and pay it to the government.
basic day trading terminology professional day trader: a professional day trader can informally be considered somebody who day trades for a living, but from a day trading usually refers to the practice of purchasing and selling a security within a single trading day. it can occur in any marketplace but is most common absolute return. an investment objective that aims to generate positive returns, regardless of the overall direction of markets/asset classes etc. adr. an adr, day trading terminology pdf, day trading terminology pdf, trading terminology for beginners, trading terms meaning, trading terms examples.
35 day trading terms you should be aware of ; 52-week high/low – when a stock hits a yearly high or low ; after hours – trading done after the check ig’s list of the financial terms in forex trading. our a-z glossary helps you to learn acronyms and terminology used in day-to-day forex trading. the practice of entering and exiting stock trades within a single day. for example, if you purchase a stock in the morning and sell it in, trading terminology beginners pdf, stock trading terms, day trading for beginners, day trading strategies, trading acronyms, day trading simulator, day trading rules, is day trading profitable, how much money do day traders with $10,000 accounts make per day on average, forex trading terminology.
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