What are Iceberg Orders? An iceberg order is a type of trading order that is designed to conceal the full size of a large order. It is named after the analogy of an iceberg, where only a small portion is visible above the water while the majority remains hidden beneath … …
Types of Not-Held Orders Not-held orders are a type of trading order that provides flexibility and control to traders. These orders allow traders to specify the price at which they want to buy or sell a security, but give discretion to the broker on when and how to execute the … …
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 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 … …
What is a Take-Profit Order TP? A Take-Profit Order TP is a type of trading order that allows traders to set a specific price at which they want to close a position and take profit. It is a predetermined level at which traders want to exit a trade to lock … …
What is Order Imbalance? Order imbalance refers to the situation in the financial markets where there is an excess of buy or sell orders for a particular security. It occurs when there is an imbalance between the number of buyers and sellers in the market, resulting in an excess of … …
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. … …
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 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. … …
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 … …
What is an Immediate or Cancel Order (IOC)? An Immediate or Cancel Order (IOC) is a type of trading order that is executed immediately and in its entirety or not executed at all. This means that if the order cannot be filled immediately, it will be canceled and no partial … …
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 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 … …
What is a Hard Stop? A hard stop is a trading order that is used to limit potential losses in a trade. It is a predetermined price level at which a trader decides to exit a position if the market moves against them. The purpose of a hard stop is … …
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 … …
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 … …
Definition of Execution in Trading In the world of trading, execution refers to the process of completing a trade or an order to buy or sell a financial instrument. It involves the actual implementation of the trade, where the buyer and seller agree on the terms and conditions and the … …
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 … …
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 … …
How Bid and Ask Prices Are Determined There are several factors that influence the bid and ask prices. One of the main factors is supply and demand. When there is high demand for a security, the bid price tends to increase as buyers are willing to pay more to acquire … …
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 … …