Trading Terms, Keywords

Trading Terms that everyone must know

Key Trading Terms

No matter what you’re trading you need to be familiar with the most common Trading terms. Here I’ll briefly summarise the meanings of a few of them. In time I’ll write a more detailed article on each of these:

  • Buy: Buying an asset with the intent of profiting off an increase in price (Going long).
  • Sell: Selling an asset to make a profit or prevent further losses.
  • Going Long: Buying an asset with the intent of profiting from selling at a higher price.
  • Short sell: Borrowing stock you don’t own for the purposes of profiting off a stock that dips in price. The opposite of going long.
  • Bid: The greatest price someone else is willing to pay for a stock
  • Ask: The asking price for a share of stock
  • Spread: The difference between the bid and ask prices
  • Market Order: An order to buy (or short sell) an asset at the current market price
  • Limit Order: This is an order to buy or sell an asset at a price of your choosing
  • Stop-Loss: An order to exit a trade at a predetermined price with the intent of limiting loss.
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About the author

Bob Bain

Bob Bain is the creator of Investo-Blog and has been trading as an independent trader for over 10 years. Bob's passion is to help people understand the simple principles behind investing and trading successfully.

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