The Basics of the Bid-Ask Spread

The terms spread, or bid-ask spread, is essential for stock market investors, but many people may not know what it means or how it relates to the stock market. The bid-ask spread can affect the price at which a purchase or sale is made, and thus an investor’s overall portfolio return. KEY TAKEAWAYS The bid-ask spread […]

Forex – Trend

What is a Trend? A trend is the general direction of a market or an asset’s price. In technical analysis, trends are identified by trendlines or price action that highlight when the price is making higher swing highs and higher swing lows for an uptrend, or lower swing lows and lower swing highs for a downtrend. Many traders opt to trade […]

Forex – Order

What is an Order? Understanding Orders Order Types Examples What is an Order? An order is an investor’s instructions to a broker or brokerage firm to purchase or sell a security on the investor’s behalf. Orders are typically placed over the phone or online through a trading platform. Orders fall into different available types which allow investors to […]

Technical Indicator

What Is a Technical Indicator? Technical indicators are heuristic or mathematical calculations based on the price, volume, or open interest of a security or contract used by traders who follow technical analysis. By analyzing historical data, technical analysts use indicators to predict future price movements. Examples of common technical indicators include the Relative Strength Index, Money Flow Index, […]

Bear Market

Bear Market What Is a Bear Market? Secular and Cyclical Bear Markets The Naming of Bear and Bull What Causes a Bear Market? Phases of a Bear Market Bear Market vs. Correction Short Selling in Bear Markets Puts and Inverse ETFs Real World Examples What Is a Bear Market? A bear market is a condition […]

Bull Market

Bull Market What is a Bull Market? A bull market is the condition of a financial market of a group of securities in which prices are rising or are expected to rise. The term “bull market” is most often used to refer to the stock market but can be applied to anything that is traded, such as bonds, real […]

Forex – Law of Supply Demand

What Is the Law of Supply and Demand? The law of supply and demand is a theory that explains the interaction between the sellers of a resource and the buyers for that resource. The theory defines what effect the relationship between the availability of a particular product and the desire (or demand) for that product […]

Liquidity

What Is Liquidity? Liquidity describes the degree to which an asset or security can be quickly bought or sold in the market at a price reflecting its intrinsic value. In other words: the ease of converting it to cash. Cash is universally considered the most liquid asset, while tangible assets, such as real estate, fine art, and collectibles, are all relatively illiquid. […]

Market Order Definition

What Is a Market Order? A market order is a request by an investor – usually made through a broker or brokerage service – to buy or sell a security at the best available price in the current market. It is widely considered the fastest and most reliable way to enter or exit a trade and provides […]

Bid-Ask Spread

What is a Bid-Ask Spread? A bid-ask spread is the amount by which the ask price exceeds the bid price for an asset in the market. The bid-ask spread is essentially the difference between the highest price that a buyer is willing to pay for an asset and the lowest price that a seller is willing to accept. An […]