Archives Glossary

Bear Market

Bear Market Illustration

In the world of finance, the term “Bear Market” refers to a situation when the prices of securities decline, and a general sense of pessimism makes the stock market’s downward spiral self-sustaining. A bear market is characterized by prices falling…

Bear Trap

What is bear trap?

A bear trap is a term in financial markets used to describe a situation where investors mistakenly anticipate a bear market or a decline in the value of a stock, leading them to establish positions that bet on this downturn.…

Bull Market

Bull Market Illustration

A Bull Market is a term used in the financial world to describe a market scenario where the prices of securities are rising or are expected to rise. The term “bull market” is most often used to refer to the…

Dark Pool Liquidity

Dark Pool Liquidity

The term Dark Pool Liquidity refers to the volume of trades made by institutional orders placed on private exchange platforms, where the general public has little access to the specifics of these transactions. The majority of this liquidity comes from…

Day Trading

Day Trading Illustration

Day Trading refers to the practice of buying and selling financial instruments, such as stocks, bonds, commodities, or currencies, within a single trading day. This means that the trader closes out all positions before the market closes, avoiding any overnight…

Dividend

Dividends Illustration

A Dividend represents a portion of a company’s earnings that is paid to shareholders, typically in the form of cash or additional shares. It’s a way for companies to distribute a part of their profits back to their investors. Characteristics…

Fundamental Analysis

Fundamental Analysis

Fundamental Analysis is a method used to evaluate the intrinsic value of an asset, such as a stock or currency, by examining related economic, financial, and other qualitative and quantitative factors. Investors and analysts use fundamental analysis to make informed…

Leverage

Leverage - Margin Trading Illustration

Leverage refers to the use of borrowed capital or financial instruments to amplify potential returns. In the context of trading and investment, it means using borrowed money to increase the potential return on investment. Leverage can significantly magnify both gains…

Low Float Stocks

Low float stocks illustration

Low Float Stocks refer to publicly traded companies with a smaller number of shares available for trading in the open market. The “float” in a stock represents the portion of shares available for public trading, excluding shares held by insiders,…

Momentum Trading

Momentum Trading Illustration

Momentum Trading is an investment strategy where traders aim to capitalize on the continuation of existing price trends in the market. This strategy relies on the belief that assets that have performed well over a recent period will continue to…

Order Flow Trading

Order Flow Trading Visualization

Order Flow Trading is a type of market analysis that focuses on the way buy and sell orders are distributed across different price levels. This approach helps traders understand the market’s depth and liquidity, and predict future price movements based…

Oversold Stock

Oversold Stock Illustration

An Oversold Stock is a term used in financial markets to describe an asset that is perceived by traders to be undervalued relative to its inherent value, primarily as a result of an excessive volume of selling activity. As part…

Pattern Sniper™️ Quiz

Pattern Sniper Screenshots

The Pattern Sniper Quiz is an interactive quiz-like game designed to assess and challenge a trader’s pattern recognition skills. It tests the ability to identify, analyze, and react to various technical chart formations and broader trading knowledge. Features Let’s go…

Range Trading

Range Trading Illustration

Range Trading, also known as “channel trading,” is a trading strategy that seeks to capitalize on securities trading within a consistent price range. Traders identify areas of support (the price level at which an asset tends to find buying interest)…

Scalping

Scalping Illustration

Scalping is a high-frequency trading strategy aimed at making small profits from minute price changes over short periods. Scalpers, the traders who use this method, often execute tens or even hundreds of trades within a single day, leveraging the aggregate…

Sentiment Analysis in Trading

Sentiment Analysis in Stock Trading

Sentiment Analysis in Trading is the process of using computational tools to analyze and interpret the sentiment or mood of the market, primarily through textual data from sources such as news articles, financial reports, and social media. How It Works…

Short Selling

Short Selling Illustration

Short Selling, often simply referred to as “shorting,” is a trading strategy where an investor sells an asset they do not own, with the anticipation that its price will decline. The goal is to later buy back the asset at…

Stock Float

Stock Float Illustration

The portion of a corporation’s shares that are in the hands of open investors and accessible for trading is known as the Stock Float, or simply “float”. These shares do not include shares held by governments or other corporations, insiders,…

Stop-Loss Order

Stop Loss Order Illustration

A Stop-Loss Order is a type of order placed with a broker to sell a security once it reaches a predetermined price. This type of order is designed to limit an investor’s potential loss on a position in a security.…

Swing Trading

Swing Trading Illustration

Swing Trading is a style of trading where an investor aims to capture price swings or momentum in an asset over a short to medium timeframe. This strategy is typically characterized by holding positions longer than a day trader would…

Technical Analysis

Technical Analysis Illustration

Technical Analysis is a method used to evaluate and forecast the future price movements of a financial asset based on its historical price, volume, and, often, open interest. This method operates on the belief that historical trading activity and price…

Trading Simulator

Trading Simulator Illustration

A Trading Simulator is a software application or platform feature that mimics real-life trading scenarios without the actual exchange of money or securities. It provides a virtual environment where users can practice trading stocks, forex, commodities, or other financial instruments…

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