There are a number of people in the world that deal with the investment of money in the stocks or forex markets and they have to analyze the market and come up with a future expectation of the market prices in order for them to execute the correct orders and thus avoid making losses. One thing about the stocks and forex markets is that they have a lot of terminologies and in order for you to learn any of those trades then you should first start by understanding what the terminologies used in the trades mean. Read more here to understand some of the common terminologies used in both the stock trading and forex trading markets.
One of the most common terminologies that you will find in the stocks market is distribution and this implies a method that is used to determine the most likely decisions of most investors in the financial market to either buy or sell a given security by checking the probable closing price of that security. When one engages in the buying or selling of a given security after normal market trading time, it is usually said that the person is trading during after-hours trading. Arbitrage occurs when a trader is trying to take advantage of the difference in the price of a certain stock in different markets in order to make some profit.
One of the most common activities and executions in the financial markets is trying to bring out a balance between the forecasted profits and losses when trading a particular security in the stocks market and this action is usually known as asset allocation. Additionally you might hear of a back end load and what this simply means is that the trader has been charged a certain commission after selling out a particular security in the stocks market. A firm in the financial markets usually gas a variety of what it owns and the debts that it has along with the amount of money that the shareholders have invested in the company and all that information is usually included in what is called a balance sheet.
We have certain mutual securities in the stock market that are usually comprised of equities and certain securities and these are usually called balanced funds. Traders in the stock market usually check out and evaluate the market prices of a particular security and if that price is found to have fallen at a certain rate for a certain defined period of time, they term the market as a bear market. There are certain instances when the price of a the market can go up in a given period time and in that instances the market is usually referred to as a bull market.