Trading: The complete beginner's guide full of investing strategies to invest in the stock market to generate an income for a living even in uncertain times by Reese Mark

Author:Reese, Mark [Reese, Mark]
Language: eng
Format: azw3, epub, pdf
Published: 2020-09-02T16:00:00+00:00

CHAPTER 32:

Terminologies

At the money - This term is used to describe the nearest price to the equity price during a particular trading moment.

Ask price - This is the lowest price that is being advertised in the options trading that anyone is willing to accept when selling a particular option at a particular period.

Bid spread - This is the actual difference between the asking price and the bid price for a given option during a particular options trading period.

Big chicken trade - This is a term used to describe a series of bull call calendars and the bear put calendars.

Bullish - This term is particularly referring to an investor who believes that a specific stock price will go higher or simply the market will rise higher.

Bearish - This term, on the other hand, describes a trader who believes that the market prices will do lower or the market will experience a downfall at a particular trading activity in a specific period.

Break-even point - This is the specific price that an underlying asset must reach to avoid the option buyer from acquiring losses if at all they decided to exercise the option.

Call option - This is an equity agreement that awards a buyer the chance to purchase 100 particular shares at a particular strike price within a specified time. A seller is also needed to sell off the stock at a particular price if the option gets exercised.

Change - The percentage term price of the last hour's sale in the options market.

Commission - This is the fee charged in an options trading market after option orders have been executed on a securities exchange.

Contract - This is an agreement set between a buyer trader and a seller trader during a particular options trading activity.

Credit - It is any value amount received in a particular trading account from the financial benefits experienced in various options trading activities. The profits and multiple benefits feed the trading accounts.

Debit - This is any amount of cash paid out to purchase an option during a particular trading period.

Dip in the money - This is a term used to refer to multiple in-the-money occurrences that have been experienced in a particular trading period in the options market.

Downside risk - This is the estimation of a particular downfall market price that is likely to be experienced by the market during the end of a particular trading period.

Ex-dividend - This is the actual date in which the stock enters the options trading market with the absence of dividends.

Expiry date - This is the actual date–day, month, or year–to which a particular options trading contract becomes invalid and null.

Equity option - It is a kind of option that gives the owner, who happens to be the buyer, the chance to purchase and sell any available stock in the trading market at a specific share during a particular period before the expiration date is reached.

Historical volatility -This is analyzing the actual volatility of the past market occurrences and making the necessary helpful strategies and learning in your trading plan.

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