Trading Terminology

• Buy: Buying an asset when the markets are going up

• Sell: Selling an asset when markets are going down

• Bears market: When markets are falling

• Bulls market: When markets are rising

• Margin call: When you don’t have enough funds in your account to cover a trade after the closing of markets and must pay a broker’s fee

• Margin: Available funds in a trading account

• Day trade margins: The cost of a contract or asset from open till closing of the markets

• Maintenance fee:The amount of funds needed for a trade to remain open during the closing of markets

• Broker: A firm that acts as intermediary between traders

• Sell stop orders: Selling at a price below current price

• Sell limit orders: Selling at price that’s above current price

• Buy limit orders: Buying at price that’s below current price

• Buy stop orders: Buying at a price above current price

• Short: Selling a trade for a short period of time

• Market orders: Buying or selling at current price

• Long: Buying and holding a trade for a long period of time

• Volatile markets: Rapid change of market