* MINI S&P
FUTURES: Are agreements to buy or sell the cash value of the S&P Index
at a future date. e-mini S&P futures are 1/5 the size of a full S&P
futures contract and are valued at $50 X the future price. That means by
buying or selling one future contract at a price of 950 you are leveraging
$ 47,500 worth of stock.
S&P futures are
based on the S&P 500 Stock Index of 500 large-capitalization companies.
The market value of the 500 firms is equal to about 80 percent of the value
of all stocks listed on the New York Stock Exchange.
FOREX OR FX: Stands for Foreign Exchange. This is the market in which
currencies are traded. The forex market is the largest, most liquid market
in the world with an average traded value that exceeds several trillion
dollars per day and includes all of the currencies in the world.
* RUNNER: Is a trailing position. Example: You enter
an order to buy 2 (two) futures contracts. You exit one contract
and you hold onto the other contract hoping to exit at the better price.
This latter contract is a "Runner". The same term applies when trading
TWO(2) MINUTE CHART: The price bar on this chart is the movement
of price in a two (2) minute time period.
CANDLESTICK CHART: A price chart that displays the high, low, open,
and close for a security / future. Candlesticks can be used for any
timeframe or tick chart.
SET-UP: "Time to react to what the indicators are saying with a trade."
LONG: The buying of a security such as a stock, commodity future
or currency, with the expectation that the asset will rise in value.
SHORT: Short sellers assume that they will be able to buy the stock,
commodity or future at a lower amount than the price at which they sold
CHOPPY: A situation in which stock / future price changes little
over a period of time.
MARKET BREADTH: A technical analysis theory that predicts the strength
of the market according to the number of stocks that advance or decline
in a particular trading day.
STOP LOSS ORDER: An order placed with a broker to sell a security
future or commodity when it reaches a certain price. It is designed
to limit an investor's loss on a security position. This is sometimes
called a "stop market order".