basic trading terms

Basic trading terms which you should be well aware of before you make your decision to place a trade in stock market.

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Jargons are special words or few terms which are used in this industry while talking about their facts and informations. You make sure , read this thoroughly and get your fact right.

Topics covered

  1. Overview
  2. Bull Market ( Bullish )

1. Overview

In this Blog you are going to learn about what is bull and bear market? What is meant by square off and OHLC. Whenever you look into the news and current trends in stock market, you will get to hear all these words.

  • Bull Market ( Bullish )
  • Bear Market ( Bearish )
  • What is trend ?
  • Square off
  • Intraday position
  • Volume and trade
  • Long position or long
  • Short position or short
  • 52 weeks high low
  • All time high low
  • OHLC

Let’s discuss each of these terms in detail and find out what is it all about.

2. Bull market ( Bullish )

First term in our Basc trading terms blog is Bull market is a term which is used when market is going up. All the stock prices are moving in positive direction ( plus ) , it is referred to as bullish market.

In a period of time if market is going in an upward direction, like shown in below image than it is referred to as bullish market. It is not like it is not decreasing but overall it is increasing.

basic trading terms bullish

The little drops which you can see while going up is known as corrections which happens in the stock in usual basis.

3. Bear market ( Bearish )

When bull is scared, market is going down than the term which is used is know as bearish market.

basic trading terms bearish

In a particular period of time, market prices are overall going down. Sometimes it comes up too but overall it is decreasing.

It is called bear market or bearish chart.

4. What is trend?

This term you will better understand with an image. Below you can see when market goes up, the upward candle ( green ) is formed it is called trend is upwards.

When lower candles are formed ( red ) , market is going down it is referred to as down trend.

Condition of market : It is denoted by Trend of market.

5. Volume and Trade

When a buyer buys a stock and a seller sells a stock, it is know as a trade executed.

Let’s suppose a buyer buys 300 shares and a seller sells 300 shares. Than Volume of the trade will be 300. Not 600 because trade is executed between 300 shares only.

trend

Number of shares traded in an hour is Volume shares traded per hour and similarly number of shares traded in a minute is known as Volume shares traded per minute.

6. Intraday positions and Square off

Let suppose you buys 1,000 shares of dixon at 9:15 AM when market opened. Now this is your Intraday position which you have to sell before 3:30 PM.

intraday positions

Closing of your trade or Closing your intraday position is known as Squareoff. When you will sell those 1000 shares of dixon in the same day, that moment will be referred to as square off.

7. Long position and Short position

Whenever you buy a stock whether for intraday or long term, it is referred to as a long trade.
If you buys a stock for which ever purpose for what so ever time period, it is known as long trade and the positions is known as long position.

long position and short position

If suppose you sell a stock before you have it and later on you buy it in future when you actually have it in a buy position is known as shortselling.

We can sell shares of company in advance and than buy whenever you want according to a profitable good trade.

8. 52 weeks high low

Whenever we buy any stock, we check their 52 weeks ( 1 year ) high and low point.

The point at which stock went highest in last 52 weeks duration is it’s high point and lowest touch in last one year is it’s low point.

9. OHLC ( Open high low close )

Last term in our basic trading terms guide is OHLC ( Open high low close ) When market opens at 9:15 AM , the opening value or point of a stock , the high point of the stock in it’s trading time, the low point of the stock during it’s trade and the point at which it closed when market ended at 3:30pm.

Stay tuned for more upcoming blogs and keep reading the valuable articles.

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