What is Buying Power? Buying power is the total amount of cash and equity available in a trading account that a trader can allocate to buy additional securities. It is sometimes also referred to as excess equity. Simply put, it is the money an investor has available to buy securities. […]
Trading Basics
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What Is a Sine Wave? A sine wave is a geometric curve with a smooth, continuous, periodic oscillation. For traders, it indicates if a market is trending or in a cyclic mode. Sine waves are used in technical analysis and stock trading to help identify patterns. As an analytical trading […]
What Is a Golden Cross? A Golden Cross is a bullish signal in a chart pattern. It happens when the short-term 50-day moving average uptrends across the long-term 200-day moving average. The golden cross is a technical stock charting pattern interpreted as a bullish signal by many analysts and traders. […]
What is a Stop Limit Order? A stop-limit order is an order to buy or sell a stock combining the features of a stop order and a limit order to help traders control risk. The order provides conditional trade instructions over a set timeframe combining the features of a stop […]
What Is Buying on Margin? Buying on margin means borrowing money from your brokerage company and using that money to buy stocks. It is no different than taking out a loan to buy stocks. If the stock price goes up, you can repay the loan with the gain. If the […]
What is Net Change? Net change refers to the difference in the closing price of a stock, bond, or other traded financial instrument from one period to the next. In general, net change is the difference between a previous value and its current value. In the stock market, it most […]