Trading Basics
Bid-Ask Spread
The difference between the price the trader and buy at and the price they can sell at.
Also bid-offer spread. The wider the spread, the more the trader pays, reactively.
Other Trading Basics
Averaging Down
Once an initial long trade is place this is the practice of opening additional positions at a lower price with the view of bringing the average opening price of the position down.
Controlled Risk Bet
A trade where the maximum downside is predefined, usually with a guaranteed stop-loss order.
Annual Report
The annual audited full year accounts of a particular company along with statements from the Chairman and Chief Executive.
Poured over by analysts for any gems.
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