Trailing Stop: Example and How to Use It

What is a Trailing Stop? Definition and Explanation A trailing stop is a risk management tool used by traders to protect their profits and limit potential losses. It is especially useful in volatile markets where prices can fluctuate rapidly. For example, let’s say a trader buys a stock at $50 …

Time in Force Definition Types and Examples

Time in Force Definition Types Time in Force refers to the duration for which a trading order remains active in the market. Different types of time in force orders allow traders to specify how long they want their orders to remain active. There are several types of time in force …

Open Order: The Definition, Functionality, And Triggers

Definition of Open Order An open order is a type of trading order that has been placed by a trader but has not yet been executed. It represents the intention of the trader to buy or sell a financial instrument at a specific price or within a specific price range. …

Market on Close Order Definition Risks Benefits

What is a Market on Close Order? A Market on Close (MOC) order is a type of trading order that allows investors to buy or sell a security at the closing price of the trading day. This order is executed during the closing auction, which occurs in the final minutes …

Long Position Definition Types Example Pros and Cons

Long Position Definition A long position is a term used in finance and investing to describe the ownership of an asset or security. It refers to the situation where an investor or trader holds a position in a particular asset with the expectation that its value will increase over time. …

Limit Losses and Reduce Risk with Stop-Loss Orders

What are Stop-Loss Orders? Stop-loss orders are a crucial risk management tool used by traders in the financial markets. They are designed to limit potential losses and protect investments in case the market moves against the trader’s position. When placing a stop-loss order, traders specify a price level at which …

How to Kill Your Bad Habits and Live a Better Life

Identify Your Bad Habits In order to make positive changes in your life, it is important to first identify your bad habits. This step is crucial because it allows you to become aware of the behaviors that are holding you back from living your best life. Start by taking some …

Held Order: Meaning, Functionality, Applications

Held Order: Meaning, Functionality, Applications A held order is a type of trading order that is placed on hold by a broker or exchange. It is a temporary suspension of the execution of the order, usually due to certain conditions or criteria that need to be met before the order …

Good Til Canceled GTC What It Is How It Works Example

What is Good Til Canceled (GTC) Trading Order? A Good Til Canceled (GTC) trading order is a type of order placed by an investor to buy or sell a security at a specific price that remains in effect until it is either executed or canceled by the investor. This type …

Good This Week (GTW) – Meaning and Functionality Explained

What is Good This Week (GTW)? Good This Week (GTW) is a term commonly used in the trading industry to refer to a type of trading order. It is a time-limited order that remains active and valid for the entire trading week, starting from the moment it is placed until …

Discretionary Order Meaning Examples Investment Management

What is a Discretionary Order? A discretionary order is a type of trading order that gives an investment manager the authority to make investment decisions on behalf of a client without obtaining their prior approval for each transaction. This type of order allows the investment manager to act quickly and …

Buy Limit Order: Definition Pros Cons and Example

What is a Buy Limit Order? A buy limit order is a type of trading order that allows investors to set a specific price at which they are willing to buy a security. This order is placed with a brokerage firm or online trading platform and is only executed if …

Basket Trade: Everything You Need to Know

Basket Trade: A Comprehensive Guide What is Basket Trading? Basket trading involves the simultaneous buying or selling of multiple securities as a single order. Instead of trading individual stocks or bonds, investors can trade a basket of assets, which can include stocks, bonds, options, or other financial instruments. By trading …