Table of contents What is a Short Squeeze How does a Short Squeeze Happen? Short Interest Short Ratio Bull Raids and Bear Raids Cost to Borrow How to Spot a Pending Short Squeeze Tips for Trading a Short Squeeze Using a Short Squeeze to Your Advantage Short Squeeze Examples FAQ’s Updated 11/3/2023 I know a […]
A market maker is a broker-dealer who has been certified, and/or has met capital requirements, to facilitate transactions in a particular security between the buyer and sellers. They typically hold a lot of inventory of shares in that security so they can fulfill large amounts of orders in a moments notice. How Market Makers […]
What are Level 1 Quotes? Level 1 quotes are a type of quote for a stock that provides three basic data points: The last price traded The current highest bid price The current lowest ask/offer price They’re called “level 1” quotes because there’s three levels of quotes in the US stock market. Level 1, […]
When you are trading and looking at a bid/ask quote, you are looking at the Level 1. To go a step further, you can subscribe for Level 2 quotes where you will gain access to the NASDAQ order book that contains price quotes for each price level and the size on each order along […]
Candlesticks are used for charting price action by displaying the high, low, open and close prices for the time period specified. Depending if the candlestick closes higher or lower from the opening price, it will have a different color, usually either red or green where red marks a down candle and a green marks a […]
Options are a financial derivative that trade based on the price action of the underlying asset and are bought and sold in units called contracts, which usually represent 100 shares per contract of the underlying. Options come in two different types: calls and puts. Traders can choose to buy (option holder) a call/put long or sell […]
The stock market has become more popular than ever but what exactly is a stock and how do they work? What is a Stock? When you buy stock, you are actually buying a small portion of the company and becoming a partial owner or shareholder. This means you have a claim on the company’s […]
The ask price (also known as the offer) represents the lowest price a seller is willing to sell their shares for. The bid price is what represents all the buyers. In the above Level 2 of the QQQ’s you will notice that the ask is on the right hand side and is currently sitting at […]
The bid price represents what buyers are willing to pay for that particular security and the bid size represents how much a trader is willing to buy at that specific price. Above is an example of a Level 2 for the SPY and as you can see the bid price is currently at $224.68 with the […]
The Simple Moving Average (SMA) is a popular moving average that takes an average price calculation over a specific time period. Intro Moving averages (MA) are popular among technical analysts, investors and day traders around the globe. MAs collect the closing price of a given stock for a specified period of time, normally over a […]
