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Trading Terms
Trading Terms
Trading Terms
Long : A successful trade (the chart goes up) and makes you money
When long trade happen, buy the stocks to make money
E.g : You used 10 dollars to buy the stock, after a long trade, the chart goes up
and the stock is
now worth 20 dollars, once you close, you will earn extra 10 dollars
Short: A unsuccessful trade (the chart goes down) and lose money if you bought the
stock
When short trade happen, sell the stocks to make money
E.g. : You borrowed 5 stocks from your broker that's worth 20 dollars, after a
short trade happens,
the chart goes down, and the stock is only worth 10 dollars, then you return
the 5 stocks to
the broker, and you made 10 dollars
Orders:
Market order: You want the stock RIGHT NOW no matter what the ask price is, you
want the broker to buy the