What is a Short Sale Rule? This is an SEC rule where short sales are only executed on an uptick or when someone pays up to your price where your short order is; you can’t hit the bid on a stock with an SSR. According to the SEC, a short sale refers to the sale […]
This is a contingent order where by primary and secondary orders are created. When the primary order executes, the secondary order is triggered automatically. This means that the secondary order will become active and follow conditions set for its execution. OTO saves time for the trader since traders can purchase a certain amount of options […]
This refers to a technical analysis strategy that utilizes trailing stop and reverse method in order to determine entry and exit points. It is also defined as a price and time analysis measure used to identify points pertaining to stops and reverses. Also referred to as a Stop And Reverse method, it was developed by […]
What is a One Cancels Other Order? This refers to a situation where two orders are made and if one of the orders is executed, the other is cancelled automatically. OCO is known to combine a stop order with a limit order on an automated trading platform and that is why it’s used by seasoned […]
This is a special trade order that disallows the setting of the stop-loss price as a single absolute dollar amount but allows the setting of the value as a percentage usually below the market price. The percentage value helps to track the securities price direction automatically and does not require any manual reset. A trailing […]
Basically, it refers to the number of shares traded at the market during trading hours. It is also a measure of how much a particular security has been traded within a specific period of time. As a powerful tool, it’s used as an indicator when it comes to trading. In day trading, there are buyers […]
In day trading, divergence is a trading concept that forms on your trading bar chart and results from the price action of a security moving in opposite directions. This happens when the price of an asset or index makes a higher high but the indicator used makes a lower high, usually the MACD indicator. What […]
To be a successful day trader, skill, discipline and training are among the most important attributes that one has to possess. Every trader has goals they would love to attain. Some of the goals include attaining good returns, minimizing risks and compounding growth. To ensure every trader has a fair leverage when interacting with the […]
What is Regulation T? This is a collection of protocols formulated by the Federal Reserve Board that governs investors’ margin and cash accounts. When investors purchase securities on borrowed money, it’s referred to as buying on margin. Buying stock on credit exposes investors to huge losses compared to purchasing the same securities with cash. To […]
What is Electronic Communication Network (ECN)? ECN is a computer system that buys and sells orders for securities. It is an automated electronic system which takes up the role of a third party when it comes to execution of orders. This system is designed to allow trade orders entered by a market maker to execute […]
