Quick Terminology Check for New Traders

[Anonymous]

Quick Terminology Check for New Traders

Stock Terms
SS – Short Sale
Blue Chip – Large Companies, Usually $50BN+ in Size
OTC – Over the counter, shit stocks, penny stocks that are not registered
Support – Where there is more buying
Resistance – Where there is more selling
SL – Stop Loss
VWAP – Volume weighted average price
MACD – Moving Average Convergence Divergence
RSI – Relative Strength Index
EMA – Exponential Moving Average
SMA – Simple Moving Average
MA – Moving average

Options Terms
BTO – Buy to Open
STC – Sell to Close
STO – Sell to Open
BTC – Buy to Close
Expiration Date – The date in which my contract will become worthless if not exercised by (Why Options are Higher Risk and Reward)
Strike Price – The price in which I can buy or sell the stock if I choose to exercise my contract
Debit – You are paying the money, meaning you are buying something
Credit – You are receiving the money, meaning you are selling something of value
MID – Middle price between the bid and the ask
Market – Market Order means there is no guarantee of the price you will pay or receive (as the case may be)

The bid price refers to the highest price a buyer will pay for a security. The ask price refers to the lowest price a seller will accept for a security. The difference between these two prices is known as the spread; the smaller the spread, the greater the liquidity of the given security

[Author]

Posts