Important terms used in trading:
1.
Index - Index is most commonly used benchmark
for traders.
2.
Initial public offering (IPO) - The first offering
of a stock by a company to the traders.IPO is used in order to make more
profit.
3.
Dividend - It’s a portion of company earning
which is distributed to a class of its shareholder, decided by board of
directories.
4.
Hedge - To reduce the risk in price movements
for an asset hedge is used. It hold an position for an stock and sold it for
future contracts.
5.
Yield - Yield is the measure of return on an
investment this is calculated by annual dividend
amount to the price paid for the stock
6.
Margin - To purchase an investment in share
market, a person borrow money from brokers. The difference between the loan
amount and securities price is termed as margin.
7.
Day trading
- In general terms day trading is
the purchasing and selling of different financial things like future, option,
stocks and currencies with the aim of gaining a profit.
8.
Bear market - A long term decline market, the
country’s economy recession time is termed as bear market.
9.
Bull market - A financial market where the price
rising is expected to rise. This word is often term as bull market.
10.
Over the counter market (OTC) – A decentralized
market where there is no geographical limitation, trading is done through
computers and telephone.
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