Trading Terms

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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

Broke: An individual or firm that acts as an intermediary between an investor and a


securities exchange.
A broker can also refer to the role of a firm when it acts as an agent for a
customer and charges
the customer a commission for its services.
Bull : You think the market will get long trade (the chart goes up) if you are
feeling bullish, means
you think you will be making money from the long trade. Bullish market means
the market will most
like get long trades
Bear : You think the market will get short trades (the chart goes down) if you feel
bearish you will
sell stocks becuase you think the market will get short trades. Bearish
market is the market
that will most likely get short trades

Spread: The difference between bid and ask


Bid : The highest someone is going to buy a stock
Ask : The lowest a broker would sell the same stock
E.g : Apple's Share bid is 10$ while the ask is 11$ so the trader is willing to
pay 10$ for the share while
the Apple's broker wants at least 11$ from the trader. And the spread is 1$
because the ask is 11$ and
the bid is 10$ 11-10=1

Orders:
Market order: You want the stock RIGHT NOW no matter what the ask price is, you
want the broker to buy the

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