- Account: Record of all transactions.
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- Account Value: The current value of your portfolio combining your cash balance, assets and deducting liabilities.
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- All or Nothing (AON): A requirement that all the shares in the order must be filled or the entire order will not be executed.
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- Asking Price: The price at which an issue is offered for sale.
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- Bear: The belief that the market will fall or is weak.
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- Behavioral Finance: The (relatively new) study of psychology and its influence on the behavior of players in financial fields (especially trading markets) and the resulting effects on the markets within.
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- Bid: The price at which an issue is offered for purchase.
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- Broker: Someone who acts as an agent in the buying and selling of issues.
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- Bull: The belief that the market will rise or is strong.
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- Buy and Hold: An investment strategy in which stocks are bought and then held for a long period of time (long-term), regardless of market volatility.
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- Buying Power: The amount available for purchase of long shares.
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- Cash Balance: The actual amount of cash in your account. Can be used to buy long shares, as collateral for shorted shares, or for withdrawal.
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- Close: The price of the last trade of the previous day.
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- Commission: The fee paid to a broker by an individual for trading (buying or selling) a stock (typically 5% of the order value with AllSportsMarket).
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- Cover: After a trader has sold a stock short, they eventually need to buy the stock back to repay the borrowed shares to their broker, hopefully at a lower price.
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- Day Trading: A type of (very) short term trading that involves buying and selling the same financial instruments throughout the day. Day traders typically close out their positions at the close of the trading day to avoid overnight risk hence the term, "day trading".
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- Derivative: A derivative in a financial sense is simply a security whose value is derived from something else. Therefore, the derivative has no actual or real value but gets its value based (i.e. derived) from the underlying asset that is it associated with.
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- Dividend: A payment made to the shareholders of a stock.
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- Drawdown: A reduction in account equity (typically with a sub-zero balance) on a trade or series of trades.
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- End of Day (EOD): The end of the trading day. The AllSportsMarket trading day officially ends at 12:01am. Trading is available 24 hours on the ASM exchange so EOD is just an arbitrary figure.
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- Equity: Ownership in a stock.
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- Fill: The execution of a buy or sell order.
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- Float: The number of shares of a stock available for trading (buying and selling) by exchange members.
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- Fibonacci: An Italian mathematician (Leonardo Fibonacci of Pisa) responsible for the series 1, 1, 2, 3, 5, 8, 13, 21... (each number is the sum of the previous two numbers). These numbers, called the Fibonacci series, can be used in technical analysis that refers to the likelihood that a financial asset's price will retrace a large portion of an original move and find support or resistance at the key Fibonacci levels before it continues in the original direction. These levels are created by drawing a trendline between two extreme points and then dividing the vertical distance by the key Fibonacci ratios of 23.6%, 38.2%, 50%, 61.8% and 100%.
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- Fundamental Analysis: Is simply a method used to look at a security's historical performance to estimate the future performance. Fundamental analysis studies the 'underlying business performance' for reasoning to what will most likely occur in the future.
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- Game Pot: Monies derived from commission (50% of the commission amount from each party) and pot plundering is allocated to the issue's dividend game pot until schedule payout to shareholders.
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- Holding Company: A company with controlling shares in other another company (security / issue etc).
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