The triple bottom pattern is a popular chart pattern used in technical analysis that signals a potential reversal of a downtrend. It is formed when the price of an asset reaches a low point three times, with each low being roughly equal. The pattern is completed when the price breaks...
What is a Spread Trade? A Clear Explanation
A spread trade is a popular investment strategy used by traders and investors to take advantage of market imbalances. It involves simultaneously buying and selling related securities as a unit to profit from the price difference between them. Spread trades are usually executed with options or futures contracts as the...
What is Share Consolidation? An Overview of the Process
Share consolidation is a term used to describe a process by which a company reduces the number of shares trading on the stock exchange. This is achieved by reducing the number of shares held by its existing shareholders. Share consolidation is also known as a reverse split in the US....
eToro Leverage Fees
Leverage trading has become a popular strategy among traders, allowing them to amplify their potential returns. eToro, a leading social trading platform, offers leverage trading across various financial instruments. However, with the potential for higher returns comes the responsibility of understanding the associated fees. In this guide, we'll delve into...
What is ECN?
Electronic Communication Networks, commonly known as ECNs, have revolutionized the world of trading and finance. They serve as a bridge, connecting individual traders with major liquidity providers, ensuring that the financial markets remain fluid and efficient. What is ECN? Before diving deep into the intricacies of ECNs, let's highlight some...
What is Market Making?
Market making is a crucial activity in financial markets that ensures liquidity and facilitates the smooth functioning of trading. Market makers are entities or individuals that continuously offer to buy and sell securities at publicly quoted prices, ensuring that investors can trade these securities whenever they wish. By doing so,...
What is the Carry Trade?
The carry trade is a popular financial strategy used by investors and traders in the foreign exchange market. At its core, the carry trade involves borrowing money in a currency with a low interest rate and investing it in a currency with a higher interest rate. The difference between the...
What is Positional Trading?
Positional trading, often referred to as long-term trading, is a trading style where traders hold positions for extended periods, ranging from several weeks to months or even years. Unlike day or swing trading, positional trading is less about short-term market fluctuations and more about capturing significant price movements over time....
Volume Price Analysis
Volume Price Analysis (VPA) is a technique that combines the study of price with volume to provide a more comprehensive view of market trends. By analyzing both price and volume, traders can gain deeper insights into potential future price movements. This method is rooted in the belief that volume precedes...
Institutional Traders
Institutional traders play a pivotal role in the financial markets, often moving vast sums of money and influencing market trends. These traders represent financial institutions such as banks, hedge funds, and mutual funds. Their trading activities differ significantly from those of retail traders, both in terms of scale and strategy....