Trading Essentials

When trading in financial markets, it is common for traders to use margin to leverage their positions. However, it’s important to understand the concept of maintenance margin and how it differs from a margin account. Definition of Maintenance Margin Maintenance margin is the minimum amount of equity required to keep a leveraged position open. It […]

When trading in financial markets, it is important to understand the concept of an open position. An open position is a trade that has not yet been closed out, either by selling or buying back the asset. In other words, it is an active trade that is still exposed to the risks and potential profits […]

Whipsaw is a term used in trading to describe a situation where the price of a stock or other financial instrument moves in one direction, only to suddenly reverse and move in the opposite direction. This can be frustrating for traders, as it can result in losses and missed opportunities. In this article, we will […]

The bid-ask spread is an important concept in trading that represents the difference between the highest price a buyer is willing to pay for a security and the lowest price a seller is willing to accept. Understanding the bid-ask spread is crucial for traders as it affects the profitability of their trades. In this article, […]

A shareholders’ agreement is a legal document that outlines the rights, responsibilities, and obligations of the shareholders of a company. This agreement is typically used by private companies and is designed to protect the interests of the shareholders and ensure that the company is run in a fair and efficient manner. In this article, we […]

The “Rule of Thumb” is a term used to describe a practical and easy-to-remember guideline for making decisions or estimating values. In the context of finance, rule of thumb guidelines are often used to provide quick approximations and simplify complex calculations. In this article, we will explore the concept of the rule of thumb in […]

Day trading is a popular form of trading that involves buying and selling financial instruments within a single trading day. While day trading can be highly profitable, it’s also associated with high risks and significant losses. For beginners, it’s important to approach day trading with caution and to develop a solid understanding of the financial […]

Day trading, the practice of buying and selling financial instruments within a single trading day, has become increasingly popular in recent years. Many people are attracted to day trading because of the potential for high profits and the ability to work from anywhere with an internet connection. However, day trading is also associated with high […]

Futures are financial contracts that allow investors to buy or sell an underlying asset, such as stocks or commodities, at a predetermined price and date in the future. Futures are a popular trading instrument in the stock market, as they provide investors with the ability to profit from price movements without having to actually buy […]

Short selling is a trading strategy that allows investors to profit from a decline in a stock’s price. This technique involves borrowing shares of a company, selling them on the open market, and then buying them back at a lower price to return them to the lender. Short selling is a popular tool used by […]