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Technicals

VWAP

Let's discuss an important concept in finance known as Volume Weighted Average Price, or VWAP for short. This metric is calculated by taking the total volume of trades for the day and multiplying it by the corresponding price for each trade. This is then divided by the total volume for the day. Essentially, it is a measure of the average price at which a particular security is traded throughout the day.

VWAP is commonly used as a benchmark in pension plans to evaluate the performance of a particular trade. It is believed that if the price of a buy trade is lower than the VWAP, it is a favorable trade. Conversely, if the price is higher than the VWAP, it may not be as advantageous. This concept is based on the idea that the VWAP represents the fair market value of a security at any given time.

By incorporating the total volume of trades into the calculation, VWAP takes into account both the price and the quantity of

Limit orders are a key concept in finance that refers to the instructions given by an investor to a broker to buy or sell a security at a specific price or better. These ord...

In the world of finance, there is a term called "inflation" which refers to a general increase in prices over a period of time. It occurs when the prices of goods and service...

Let's discuss a triangular consolidation, a common occurrence in the world of finance. This pattern is formed when a stock makes a sharp upward movement, followed by a brief...

Stochastic models

In finance, we often encounter the concept of liability-matching models. These models rely on the assumption that both liability payments and asset cash flows are uncertain....

In finance, there exists a measure that encapsulates both the volatility and correlation of a stock's returns. This measure allows us to analyze the tendency of two stocks t...

Intermediate Term

A financial term commonly used to describe a specific timeframe, usually in the range of weeks or months. It is an important concept in the world of finance, as it allows fo...

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Commodity

All terms related to the basic goods used in commerce that are interchangeable with other goods of t

Insurance

All terms and concepts related to insurance, which is a financial arrangement that provides protecti

Currency

All terms related to the system of money in general use in a particular country, representing a medi

Trading Terms

Trading Terms encompass terminology and phrases commonly used in financial markets, including terms

Retirement Planning

All terms and concepts related to the process of saving and investing to ensure financial security a

Derivatives

All terms & concepts related to financial contracts whose value is based on an underlying asset,

Taxes

All terminology and concepts related to various tax types, tax laws, and taxation principles.

Stocks

All terms and concepts related to stocks, also known as equities, which represent ownership shares i

Financial Instruments

Legal contracts that represent financial value, such as stocks, bonds, options, futures, and various

Options and Futures

All terminologies and concepts related to financial derivatives, including options and futures contr

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