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Trading Terms

Margin Trading

This practice involves borrowing funds from a broker to make trades.

Margin Trading is a common practice in the world of finance, where traders can leverage their investments by borrowing funds from a broker. This allows them to buy shares worth more than the available funds in their trading account. Essentially, it is a form of borrowing that allows traders to make larger trades and potentially earn higher returns. However, it also involves a level of risk, as any losses incurred must still be paid back to the broker. Therefore, it is important for traders to understand the concept of margin and its implications before engaging in margin trading.

Drawee

The drawee is a crucial figure in the world of finance, whether for an individual or a business entity. This is the person or firm on whom a draft is drawn, with the respons...

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Money Stop

A crucial concept in finance is stop loss, which refers to the predetermined amount of money that an investor would lose if a certain market event occurs. This amount is fix...

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Bid (buying) rate

The exchange rate is the value at which dealers are willing to purchase foreign exchange from other dealers in the market. This rate also determines the price at which poten...

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Abandoned Baby Pattern

One of the most unusual candlestick patterns is the rare occurrence of an upside gap doji star, where the shadows do not touch. This pattern is then followed by a downside gap...

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