This is an employer sponsored retirement plan that is eligible to employees where they can make salary reduction contributions on a pre-tax or post-tax basis. The 401k plan allows employees to save and invest part of the income before taxes are deducted. Employers who offer the plan to their employees can choose to match individual […]
This refers to a private forum designed for trade securities where investors have the chance of placing big orders and completing trades without the need of publicly advertising one’s intention. Also referred to as dark pool of liquidity, they are utilized by investors for block trading especially where a large number of financial instruments are […]
This is the projected price of a financial instrument as provided by an analyst and when it’s achieved, the trader is able to attain the best possible outcome from an investment. In other words, it is the price at which a trader or investor exits a trading position finally achieving his or her reward. It […]
What is a Strike Price? Strike Price is the option price set on a derivative contract. It is often used in index and stock options, where the strike is listed precisely in the contract. Strike price is where security can be purchased during call options. Conversely, it is also the amount at which security can […]
The stochastic oscillator is a momentum indicator that helps to show the current location of a security closing price relative to its high/low range. As a range bound momentum, it’s used for three things: a. Identifying overbought and oversold levels b. Spotting divergences c. Identifying bull or bear signals One thing you need to […]
This refers to an advanced charting study used to show trading activity spanning a particular trading and price levels. Also referred to as volume by price, it helps to display the amount of volume occurring at certain price levels and range as opposed to most volume indicators that display volume based on a certain time […]
What is a Channel pattern? It is described as a price movement which utilizes support and resistance to validate what will happen in the future. As a form of trading, it capitalizes on the market tendencies to trend. This is one of the most powerful trading tools that combines different technical analysis indicators finally […]
What is a Head and Shoulders Pattern? This is a specific formation which helps to predict a bullish to bearish trend reversal. It has three peaks where middle is highest and symbolizes the head while other peaks signify both right and left shoulders. This design has been found to be reliable when it comes […]
Underlying asset is a term that is used in the trading of derivatives, such as options on equities or stocks. Derivatives are financial instruments whose price is based on, or derived from, a separate asset. The underlying asset of a derivative is the financial instrument, such as a stock, a commodity, a futures contract, an […]
What is support level? This is the price level whereby demand of a security is strong enough thus preventing the decline in price. In other words, it is the level at which investors or traders jump in to buy securities while sellers become less inclined to sell their shares. According to savvy investors and traders, […]
