Alpha
Performance of an investment compared to the overall market benchmark.
Trading Terminology
A glossary of common stock market and trading terms.
A
Algorithmic Trading
Trading executed automatically using computer algorithms and predefined rules.
B
Bear Market
A market experiencing falling prices and negative sentiment.
Breakout
When price moves above resistance or below support with increased volume.
Bull Market
A market characterised by rising prices and investor confidence.
C
Candlestick
Visual price chart bar.
E
EPS
Earnings Per Share.
L
Liquidity
The ease at which an asset can be bought or sold without affecting price.
Long Position
Buying a stock expecting its value to increase.
M
Market Order
An order executed immediately at the best available market price.
Momentum
The strength or speed of a price movement.
Moving Average
Average price overtime.
MCAD
Trend-following momentum indicator.
O
Overbought
Price may fall soon
Oversold
Price may rise soon
P
P/E Ratio
Price compared to earnings.
R
Resistance
A price level where selling pressure historically prevents price rising higher.
RSI (Relative Strength Index)
A momentum indicator used to identify overbought or oversold conditions.
S
Stop Loss
An automatic order designed to limit trading losses.
Support
A price level where buying interest prevents price falling further.
T
Trend
The general direction of market price movement over time.
Trailing Stop
A stop-loss order that moves with favourable price movement.
V
Volatility
The rate at which price moves up or down.
Volume
The number of shares traded during a period.