Trading Terms
Accumulation
Rather then buying a large amount at once, investors might want to purchase smaller amounts over time.
Active Market
The market is usually defined by volume either for individual stocks or the entire market. The more active a market is the more liquid it is and usually has smaller bid/ask spreads.
Adjusted Debit Balance
This is a term used in accounting and is a value that verifies a margin account’s position. (the amount that a client owes a broker – profits and other miscellaneous accounts)
After hours Trading
Trading that takes place when major markets are closed, used by both investment companies and individual investors. Trading takes place on ECN’s (Electronic Communication Networks).
Analysis
Selecting the best course of action after considering and evaluating market data and information.
At the bell
When trades are executed immediately after the opening bell or just before the closing bell.
At the close
When trades or orders are executed just before the market closes.
Auction Market
In this type of market buyers and sellers enter competitive bids simultaneously. Examples are NYSE and AMEX. See OTC
Average Daily Volume
This is simply the number or shares traded averaged over a time period.
Average Win per Trade
The amount of profit made on average for each trade.