tag:blogger.com,1999:blog-308166242011-04-21T19:11:37.102-07:00Below is a glossary of the trading terms used throughout my articles. If the term you are not sure of is not here, please let me know, or feel free to use the google search box below...Reeholionoreply@blogger.comBlogger11100tag:blogger.com,1999:blog-30816624.post-1152517173417116312006-07-10T00:35:00.000-07:002006-08-10T03:19:06.266-07:00<p><span style="font-family:arial;"><strong>Buy Market Order</strong> – An order to buy a contract at the current ask price. There is no guarantee that the order will be filled at that price.<br /><br /><strong>Limit Order</strong> – A limit order is an order to buy or sell a contract at a specified price or better. Using a Limit order ensures that the order will only execute at the price you specified or better, however, it does not guarantee that your order will execute.<br /><br /><strong>Liquidity</strong> – The degree to which an asset or security can be bought or sold in the market without affecting the asset's price. Liquidity is characterized by a high level of trading activity.<br /></span></p><p> </p> <p class="MsoNormal"><span style="font-family: Arial;"><span style="font-weight: bold;">Long Position</span> – Buying a stock or security in hope that the price continues to move upwards. The opposite of a short position or short selling.<o:p><br /></o:p><br /><span style="font-weight: bold;">Momentum Trading</span> – Momentum traders look to find stocks that are moving significantly in one direction on high volume and try to jump on board to ride the momentum train to a desired profit. <o:p></o:p></span></p> <p><span style="font-family:arial;"><strong>Sell Market Order</strong> – An order to sell a contract at the current bid price. There is no guarantee that the order will be filled at that price.<br /></span> </p> <p><span style="font-family: Arial;"><span style="font-weight: bold;">Short Selling</span> – Short selling involves borrowing stock from your broker and selling it in hope of buying the stock back later at a lower price. In the <st1:country-region st="on"><st1:place st="on">US</st1:place></st1:country-region> most stocks are able to be short sold.<o:p></o:p></span><br /><br /><span style="font-family:arial;"><strong>Stop Loss</strong> – An order placed with a broker to sell a security when it reaches a certain price. It is designed to limit an investor's loss on a security position.</span></p><p><span style="font-family:arial;"><strong>Stop Limit Order</strong> – A Stop Limit order is similar to a stop order in that a stop price will activate the order. However, the stop order becomes a market order when elected, but the stop limit order becomes a limit order.<br /><br /><strong>Stop Order</strong> – A Stop order becomes a market order to buy or sell securities or commodities once the specified stop price is attained or penetrated. A Stop order is not guaranteed a specific execution price.</span></p><p> </p><p class="MsoNormal"><span style="font-family: Arial;"><span style="font-weight: bold;">Swing Trading</span> – Swing trading is a style of trading that attempts to capture gains in a stock within one to four days.<o:p></o:p></span></p><br /><br />*Please leave any comments you may have at <a href="http://reeholiostocktrading.blogspot.com">Reeholio Stock Market Trading</a> Home Page<div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/30816624-115251717341711631?l=reeholioglossary.blogspot.com' alt='' /></div>Reeholionoreply@blogger.com