Professional Documents
Culture Documents
MARKET STATUSES
Pre-Open Period – trading participants can modify and cancel existing orders or enter new
orders
Pre-Open No-Cancel Period – trading participants may enter new orders but may not modify or
cancel open orders
Opening Period – opening prices are calculated during this period
Continuous Trading – the period where trading participants’ orders are matched and may enter,
cancel, and edit orders
Market Recess – the period where trading-related activities are halted
Market Resumes – trading-related activities continue
Pre-Close Period – indicates the last two minutes to open new orders but can’t cancel or modify
orders
Run-off Period – trading participants can still enter limit and market orders but matching for
both is executed at the closing price of the stock
ORDER TERMS
Stock Order – a request to either buy or sell a stock
Normal Orders – orders which follow the normal board lot
Oddlot Orders – orders which are less than the minimum board lot
Good to Day (GTD) – an option in ordering where your order will expire at the end of trading
day when not fulfilled
Good to Week (GTW) – an option in ordering where your order will last for a week
Good to Month (GTM) – an option in ordering where your order will last for a month
Good to Cancel (GTC) – an option in ordering where your order will last until you cancel
ORDER TYPES
Market Order – these are buy and sell orders that transacts the current bid and ask prices
Limit Order – this type of order allows you to set the price you’re willing to buy or sell a stock
far from the current prices
Iceberg Orders – allows you to hide a portion of the volume of your order
FUNDAMENTAL ANALYSIS
Fundamental Analysis – a method of stock market analysis that evaluates the economic and
financial factors affecting the intrinsic value of a company
Intrinsic Value – the actual and true value of the company based on all aspects of its businesses
Overvalued – when the current price or market value of the stock is higher than its intrinsic
value or the average industry price-to-earnings ratio
Undervalued – when the current price or market value of the stock is below its intrinsic value or
the average industry price-to-earnings ratio
Income Statement – provides an overview of revenues, expenses, and net income
Balance Sheet – provides an overview of assets, liabilities, and equity
Statement of Cash Flows – traces the company’s cash movement from operating, investing and
financial activities
Financial Ratios – ratios derived from the financial statements of the companies which are used
for evaluating the overall condition of its company performance
Price-to-Earnings Ratio (P/E Ratio) – measures the current price of a stock over its company
earnings per share, the lower the better
Earnings per Share (EPS) – company earnings for the year divided by the number of shares
Leverage – borrowed capital or loans used to fund company activities
Debt Ratio – the total debt of the company divided by its total assets, the lower the better
Debt-to-Equity Ratio or Leverage Ratio – a company’s debts divided by the value of its equity
(based on preferred and common stocks)
Dividend Payout Ratio – the dividends paid divided by the company’s net income
Dividend Yield – the percentage of dividends declared in relation to the stock’s current price
Par Value per Share – the price of the stock during its Initial Public Offering (IPO)
Book Value per Share – the value of the stock in the company’s books (total equity divided by
number of shares)
Price to Book Value Ratio – the ratio used to compare company’s current price or market value
to its book value, the lower the better
Sector – a subsection in the exchange of companies that share similar characteristics in operation
Sub-sector – a subset of a sector of a group of stocks that have the most similarities in terms of
operation
TECHNICAL ANALYSIS
Technical Analysis – a method of stock market analysis that uses past data and statistics to
predict future movements in the market
Trend – the general direction of a market, a stock, or the price of an asset based on a chart of its
historical value
Uptrend – when price movements consistently reach higher highs and higher lows
Downtrend – when price movements consistently reach lower highs and lower lows
Sideways – when the price of a stock moves in a generally flat manner
Chart – a visual summary of a stock’s prices within a certain period
Open – the first price at which a stock is sold for a particular day
High – the highest price at which a stock is sold for a particular day
Low – the lowest price at which a stock is sold for a particular day
Close – the last price at which a stock is sold for a particular day
Volume – the number of shares that are bought and sold on a particular day
Value Traded – volume multiplied by the price that investors have paid for a stock
Indicators/Oscillators – measurements that investors use to anticipate price movements,
momentum, and other behaviors of a particular stock or market
Support – a price level at which, historically, a stock has had difficulty falling below
Resistance – a price level which historically, a stock has had difficulty breaking above
Breakdown – a situation where the price falls below the support level
Breakout – a situation where the price rises above the resistance level
Reversal – the change of a price level from resistance/support to support/resistance after a
breakout/breakdown
Cut Loss/Stop Loss – realizing or actualizing your loss by selling the stock to save you from a
bigger loss
Bottom-Picking – the act of buying a stock with the anticipation that it has bottomed out from
its downtrend
Divergence – this happens when a technical indicator and price action are headed into opposite
directions
Bullish Divergence – a signal that indicates an impending upward move
Bullish Signal – signal that is given by a technical indicator that indicates a possible bullish
move
Bearish Divergence – a signal that indicates an impending downward move
Bearish Signal – a signal that is given by a technical indicator that indicates a possible bearish
move
Volatility – the proportion or rate wherein the price of a stock is increasing or decreasing
Confluence – this occurs when multiple indicators or strategies share the same sentiment/bias
Insider Trading – this is done by someone who has non-disclosed, nonpublic information about
a company and trades its shares based on it
Rally – a period of continuous surges, whether downward or upward, in price
Parabolic Move – an upward movement in price where it moves in the manner of a parabola
Oversold – a reading made by a technical indicator that indicates that it’s below its period’s
“true” value
Overbought – a reading made by a technical indicator that indicates that it’s above its period’s
“true” value
Momentum – the rate of the acceleration of a stock’s price
Momentum Trading – the method of buying a stock while there’s buying pressure from other
investors or traders
Range Trading – a strategy where a trader buys at support and sells at resistance during a
sideways movement
Target Price (TP) – the price point where you plan to sell a position
Time Stop – a way to sell a stock when it isn’t moving within your bias in a specified time
Trail Stop – an amount below the current trading price of a stock that you plan to sell it for a
profit
Tranche Buying – the action of buying a stock in portions
Tranche Selling – the action of selling a stock in portions