Trading Terms Part 1

Jul 31, 2020 TeP Education

Liquidity refers to how easy the assets or security can be traded or converted into cash without affecting its market price.

It is very important that your broker has top tier liquidity providers to make sure your trades are executed without any problem. That’s why we use eToro as our broker.

Trading volume is the sum of shares or contracts traded for a specific security. It can be measured on stocks, bonds, options, futures, and all types of commodities.

Long also known as long position is the buying of a stock or any asset with the expectation that it will increase in value. A long position is the opposite of a short position.

Averaging down strategy is when you are adding to a losing position but reducing the price at which a bounce-back returns a good profit. This is ideal for long-term investors.

Here’s a good example. I used averaging down trading strategy for my $NFLX position.

By Jed

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