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Basic Trading Terminology
Bid/Ask: Bid = buying price, Ask = selling price. Spread: Difference between bid and ask (lower = better liquidity). Leverage: Borrowed capital to increase position size (higher risk/reward). Long/Short: Long = buy (expecting price to rise), Short = sell (expecting price to fall). Stop-Loss (SL): Automatic exit to limit losses. Take-Profit (TP): Automatic exit to lock in profits.
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Basic Trading Terminology
Trading Basics: A Beginner’s Guide
Trading involves buying and selling financial instruments (like stocks, forex, cryptocurrencies, or commodities) to profit from price movements. Types of Trading - Day Trading: Buying and selling within the same day (no overnight positions). - Swing Trading: Holding trades for days or weeks to capture medium-term trends. - Position Trading: Long-term investing (months/years) based on fundamentals. - Scalping: Extremely short-term trades (seconds/minutes) for small profits. Markets - Stocks: Shares of publicly traded companies (like, Apple, Tesla). - Forex (FX): Currency pairs (e.g., EUR/USD, GBP/JPY). - Cyptocurrencies: Digital assets like Bitcoin, Ethereum. - Commodities: Gold, oil, silver, etc. - Indices: S&P 500, NASDAQ, Dow Jones (traded via ETFs or futures).
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Trading Basics: A Beginner’s Guide
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