trading terms

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top-down

Types of investing: top-down vs bottom-up

The world of trading is a complex and multi-faceted one, and there are many different approaches to investing. In this blog post, we’ll go over two different types of investing: top-down and bottom-up, and see how you can use both modes to make the most of your trading.   Top-down investing Top-down investing is an […]
stock valuation models

Stock valuation models: everything you need to know

Stock valuation can be a useful way to gauge the worth of an asset or company. But what is stock valuation, and how can you use it to make the most of your trading operations? Read on to find out the basics on stock valuation models, including the various different types and metrics.   What […]
technical analysis

Technical analysis: the basics

In a previous blog post, we covered the basics on fundamental analysis. But what about the other main mode of market analysis- technical analysis? Read on to find out more.   What is technical analysis? Technical analysis is a method of market analysis that examines and predicts using historical data from price charts and market […]
leverage

Trading with leverage: Everything you need to know

Leverage can be a valuable tool in your trading operations, and can be used to help you make the most of an unfavourable or unprofitable situation. But what exactly is leverage, and how can you best use it when trading? Read on to find out more.   What is leverage? The clue is in the […]
traders

Types of traders: who’s who in the trading world

As a trader, you’ll come into contact with various other traders, as well as various individuals and bodies; in some cases you may need their services to gain access to the markets. Read on for a look at these market participants, their functions and their motivations – and importantly your relationship with them.   Retail […]
financial instruments

Financial instruments- what they are and how they work

Financial instruments are an essential part of the trading experience, but what are they and how do they work? Read on to find out more.   What are financial instruments? Put simply, financial instruments are monetary contracts between parties- they are the things that are bought and sold in financial trading. People and companies often […]

The difference between long and short trade

Most people think about trading in just one direction; they imagine buying an asset (‘going long‘) before the price begins to rise, then selling it just as it reaches its peak to reap a profit. While this is an excellent goal for any trader to aim for, it’s by no means the only potential way […]

How does spread betting work?

Spread betting is a way of speculating on the price movements of a given financial instrument, and works by tracking the value of an asset, without having to take ownership of it. The “spread” in this situation is the difference between the highest price at which a buyer is prepared to buy, and the lowest […]

Writing a trading journal: What should you keep track of?

In previous blog posts, we mentioned the importance of keeping your trading operations organised, and a trading journal can be a useful way of doing just that. But what is a trading journal, and what should you use it to keep track of? Here are some factors you can use a trading journal to document […]

Contracts for difference (CFDs): The Basics

Trading using contracts for difference (or CFDs) can be a useful way to easily profit on the global market by tracking the price movements of a number of financial instruments and assets. But what are CFDs, how do they work, and how could you benefit from trading with CFDs? Here’s everything you need to know […]