Trader's Glossary


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There are currently 7 names in this directory beginning with the letter A.
An Acquisition is when a company takes over another one, by either buying the majority of shares or having the full ownership.
The act of buying an asset then selling it immediately to take advantage of a difference in price is called Arbitrage.
Ask or Asking Price is the price at which a security is offered for sale.
Asset Class
An asset class is a group of financial instruments that have similar financial characteristics and behave similarly in the marketplace. Stocks, bonds, real estate, commodities and currencies are common examples of asset classes.
An asset is any resource which can generate cash flow, return profit or provide future economic benefit. In trading, an asset refers to any instrument such as stocks, bonds, currencies or commodities.
Automated Trading
Automated or algorithmic trading is the use of computer programs to automatically execute trading orders without human intervention.
Averaging Down
When a market participant buys a stock/currency/etc. and the price falls, they tend to buy more of the same instrument they already own to reduce the average price at which they bought the trading instrument. This act is called Averaging Down.