The bidder is the party offering to buy an asset from a seller at a specific price.

In a market, a bidder is a party offering to buy an asset from a seller at a specific price. For example, if Users A, B, C, D, and E are bidding for the same product, and User A bids $5, User B bids $5, Users C and D bid $2, and User E bids $3, then User E wins the bidding because their bid was unique. If someone else has placed a bid that is higher than the maximum bid, the bidder will be notified, allowing them to change the maximum bid and stay in the auction. An automated bidding service will bid on their behalf to ensure that their bid meets the reserve price, or that they always stay in the lead, up to their maximum bid. Probably the most common type of market in which there are bidders is an auction; an auction is a public sale in which goods or property are sold to the highest bidder.

Bidder

Day traders execute short and long trades to capitalize on intraday market price action, which result from temporary supply and demand inefficiencies.

Table of Contents
What Is a Day Trader?
Basics of a Day Trader
Day Trader Techniques
Day Trader Strategies The Financial Industry Regulatory Authority (FINRA) and New York Stock Exchange (NYSE) classify day traders based on whether they trade four or more times during a five-day span, provided the number of day trades is more than 6% of the customer's total trading activity during that period or the brokerage/investment firm where they have opened an account considers them a day trader. **News-based trading**: this strategy typically seizes trading opportunities from the heightened volatility around news events and headlines.
**High-frequency trading (HFT)**: these strategies use sophisticated algorithms to exploit small or short-term market inefficiencies up to several thousand times in a single day. Day traders employ a wide variety of techniques in order to capitalize on market inefficiencies, often making many trades a day and closing positions before the trading day ends. A pattern day trader (PDT) is a regulatory designation for those traders or investors that execute four or more day trades over the span of five business days using a margin account.

Day Trader

An endorser is authorized to sign a negotiable security in order to transfer ownership or to approve the terms and conditions of a contract. 

An endorser is a person who is authorized to sign a negotiable security in order to transfer ownership from one party to another or to approve the terms and conditions of a contract. To properly endorse a check, the name signed on the back of the check needs to match the payee name written on the front of the check. If the payee name was misspelled or written incorrectly, sign it with the incorrect version, and then sign again using the correct name. Most checks have a small section for you to write in, known as the endorsement area. If you’ll mail the check, deposit it at an ATM, or carry it around for a while, use another method: Either leave the check unsigned until you’re ready to deposit, or add a restriction to the endorsement. A payee can also sign a check over to somebody else, effectively paying that person with the check you received. Try to keep your entire signature and any other instructions in that area.
The easiest way to endorse (but also the most dangerous) is to simply sign the check without adding any restrictions.

Endorser

A fill is the action of completing or satisfying an order for a security or commodity. It is the basic act in transacting stocks, bonds or any other type of security.

A fill is an executed order. While most orders fill automatically when the price is triggered or achieved, at times, certain algorithms can specify that an order fills over a set period of time and/or based on the trading volume of a security.
If an order has a stipulation or condition such as a limit price, the order may only be partially filled. A stop order (also called a stop-loss order) is a limit order that becomes a market order once the target price is achieved. For example, if a buy stop order is entered at a price of $20 (above the current market price), and the stock achieves this price, it will automatically purchase specified shares at the next available market price (e.g. $20.05). In reverse, if a sell stop order is entered for $20, and the stock is declining, when it hits $20, it becomes a sell order at the next available market price, which could be $19.98.

Fill

Forex (FX) is the market for trading international currencies. The name is a portmanteau of the words foreign and exchange.

Table of Contents
What is Forex (FX)?
Understanding Forex If the Eurozone has an interest rate of 4% and the U.S. has an interest rate of 3%, the trader owns the higher interest rate currency in this example. When trading in the forex market, you're buying or selling the currency of a particular country, relative to another currency. When trading in the electronic forex market, trades take place in blocks of currency, and they can be traded in any volume desired, within the limits allowed by the individual trading account balance. In the forex market, a profit or loss results from the difference in the price at which the trader bought and sold a currency pair.

Forex (FX) , Uses, & Examples

Futures are financial contracts obligating the buyer to purchase an asset or the seller to sell an asset at a predetermined future date and price.

CME Group All Products – Codes and Slate

Understanding the Difference: European vs. American Style Options

Table of Contents
What Are Futures?
Understanding Futures
Using Futures
Real-World Example of Futures However, there are many types of futures contracts available for trading including:
Commodity futures such as crude oil, natural gas, corn, and wheat
Stock index futures such as the S&P 500 Index
Currency futures including those for the euro and the British pound
Precious metal futures for gold and silver An investor would realize a gain if the underlying asset's price was below the contract price and a loss if the current price was above the contract price. If a trader bought a futures contract and the price of the commodity rose and was trading above the original contract price at expiration, then they would have a profit. Let's say a trader wants to speculate on the price of crude oil by entering into a futures contract in May with the expectation that the price will be higher by year-end.

Futures

The left-hand side (LHS) is the bid price of a two-way price quote. It denotes the highest advertised price someone is willing to buy at.

The left-hand side, or bid, indicates the price at which the dealer, trader, investor, or market maker (MM) is willing to buy a security or currency, and the right-hand side, or ask, indicates the price at which the participant is willing to sell the security or currency. The left-hand side (LHS) refers to the bid price in a forex quotation, since the bid price appears on the left in a two-way price quote and the offer on the right. The bid price is the highest price someone is willing to buy the base currency or the price at which a seller can sell the base currency in the market.
The size of the bid/ask spread is an indicator of the current liquidity in a market. A two-way price quote denotes both the bid price and the ask (offer) price of a security.

Left Hand Side (LHS)

A limit order is used to buy or sell a security at a pre-determined price and will not execute unless the security's price meets those qualifications.

Table of Contents
What Is a Limit Order? For buy limit orders, the order will be executed only at the limit price or a lower one, while for sell limit orders, the order will be executed only at the limit price or a higher one. By using a buy limit order the investor is guaranteed to pay the buy limit order price or better, but it is not guaranteed that the order will be filled. While the price is guaranteed, the filling of the order is not, and limit orders will not be executed unless the security price meets the order qualifications. A limit order gives a trader more control over the execution price of a security, especially if they are fearful of using a market order during periods of heightened volatility.

Limit Order

A market order is an instruction to a broker to buy or sell a stock or other asset immediately at the best available current price.

Table of Contents
What Is a Market Order?
Understanding Market Orders
Market Order vs. Limit Order
Real World Example
Special Considerations
Market Order FAQs A market order is an instruction by an investor to a broker to buy or sell stock shares, bonds, or other assets at the best available price in the current financial market. A limit order, which instructs the broker to buy or sell only at a certain price, is the main alternative to the market order for most individual investors. Any time a trader seeks to execute a market order, the trader is willing to buy at the asking price or sell at the bid price. A limit order allows an investor to set a maximum acceptable purchase price amount or a minimum acceptable sales price while placing an order.

Market Order

Market risk is the possibility of an investor experiencing losses due to factors that affect the overall performance of the financial markets.

Title 17: Commodity and Securities Exchanges. Sec. 229.105 (Item 105) Risk factors

Table of Contents
What Is Market Risk? The most common types of market risk include interest rate risk, equity risk, commodity risk, and currency risk. The most common types of market risks include interest rate risk, equity risk, currency risk, and commodity risk. Equity risk is the risk involved in the changing prices of stock investments, and commodity risk covers the changing prices of commodities such as crude oil and corn. Equity risk is the risk involved in the changing prices of stock investments,
Commodity risk covers the changing prices of commodities such as crude oil and corn.

Market Risk

An offer is a conditional proposal made by a buyer or seller to buy or sell an asset, which becomes legally binding if accepted.

An offer is a conditional proposal made by a buyer or seller to buy or sell an asset, which becomes legally binding if accepted. When it comes to equity and debt offerings, the offering price is the price at which publicly issued securities are offered for purchase by the investment bank underwriting the issue. When it comes to equity and debt offerings, the offering price is the price at which publicly issued securities are offered for purchase by the investment bank underwriting the issue. Meanwhile, in equity and debt offerings, the offering price is the price at which publicly issued securities are offered for purchase by the investment bank underwriting the issue. When startups decide to IPO or make their initial public offering, this offer price is estimated to be at the sweet spot where there is both demand from buyers who are interested and willing to purchase stock investments in the company, as well as considerations for the supply of stock available.

Offer

The risk/reward ratio is used by many investors to compare the expected returns of an investment with the amount of risk undertaken to capture these returns.

The risk/reward ratio marks the prospective reward an investor can earn for every dollar they risk on an investment. If an investor prefers to seek a 1:5 risk/reward ratio for a specified investment (five units of expected return for each additional unit of risk), then they can modify the stop-loss order and thus adjust the risk/reward ratio. The risk/reward ratio marks the prospective reward an investor can earn for every dollar they risk on an investment. In many cases, market strategists find the ideal risk/reward ratio for their investments to be approximately 1:3, or three units of expected return for every one unit of additional risk. Consider the following example: an investment with a risk-reward ratio of 1:7 suggests that an investor is willing to risk $1, for the prospect of earning $7.

Risk/Reward Ratio

A shareholders' agreement is an arrangement among a company's shareholders that describes how the company should be operated and outlines shareholders' rights and obligations.

A shareholders' agreement, also called a stockholders' agreement, is an arrangement among shareholders that describes how a company should be operated and outlines shareholders' rights and obligations. As with all shareholder agreements, an agreement for a startup will often include the following sections:
A preamble, identifying the parties (e.g. a company and its shareholders)
A list of recitals (rationale and goals for the agreement)
Details of optional versus mandatory buying-back of shares by the company in the event that a shareholder gives theirs up
A right of first refusal clause, detailing how the company has the right to purchase a selling shareholder's securities prior to them selling to an outside party
Notation of a fair price for shares, either re-calculated annually or via a formula
A potential description of an insurance policy A shareholders' agreement includes a date; often the number of shares issued; a capitalization table that outlines shareholders and their percentage ownership; any restrictions on transferring shares; pre-emptive rights for current shareholders to purchase shares to maintain ownership percentages (for example, in the event of a new issue); and details on payments in the event of a company sale.
Shareholder agreements differ from company bylaws. A shareholders' agreement, also called a stockholders' agreement, is an arrangement among shareholders that describes how a company should be operated and outlines shareholders' rights and obligations. A shareholders' agreement is an arrangement among a company's shareholders that describes how the company should be operated and outlines shareholders' rights and obligations.

Shareholders' Agreement

Short selling occurs when an investor borrows a security, sells it on the open market, and expects to buy it back later for less money.

Short sellers make VW the world's priciest firm

Table of Contents
What Is Short Selling?
Understanding Short Selling
Why Sell Short? Two metrics used to track short-selling activity on a stock are:
1.  Short interest ratio (SIR)—also known as the short float—measures the ratio of shares that are currently shorted compared to the number of shares available or “floating” in the market. Pros and Cons of Short Selling
Additional Considerations with Short Selling
Costs of Short Selling
Short Selling Metrics
Ideal Conditions for Short Selling
Short Selling's Reputation
Real-World Example of Short Selling
Why Is it Called Selling Short?
Why Do Short Sellers Have to Borrow Shares?
Is Short Selling Bad? Pros
Possibility of high profits
Little initial capital required
Leveraged investments possible
Hedge against other holdings
Potentially unlimited losses
Margin account necessary
Margin interest incurred
Short squeezes
When it comes time to close a position, a short-seller might have trouble finding enough shares to buy—if a lot of other traders are also shorting the stock or if the stock is thinly traded. A short squeeze happens when a stock begins to rise, and short-sellers cover their trades by buying their short positions back.

Short Selling : What Is Shorting Stocks?

A stock is a form of security that indicates the holder has proportionate ownership in the issuing corporation.

What Stock Market Returns to Expect for the Future

Does “We the People” Include Corporations

THE NATURE OF THE LIABILITY OF SHAREHOLDERS OF A CORPORATION, UNDER STATUTE IMPOSING A LIABILITY ADDITIONAL TO THAT FOR STOCK SUBSCRIBED

INDEPENDENT DIRECTORS AND CONTROLLING SHAREHOLDERS

Keynote speech by Marc Bayle de Jessé, Director General Market Infrastructure and Payments, ECB, at the Central Bank Payments Conference, Amsterdam, 27 June 2017

A stock (also known as equity) is a security that represents the ownership of a fraction of a corporation. For example, if a company has 1,000 shares of stock outstanding and one person owns 100 shares, that person would own and have claim to 10% of the company's assets and earnings. Owning stock gives you the right to vote in shareholder meetings, receive dividends (which are the company’s profits) if and when they are distributed, and it gives you the right to sell your shares to somebody else. So if you own 33% of the shares of a company, it is incorrect to assert that you own one-third of that company; it is instead correct to state that you own 100% of one-third of the company’s shares. The holder of stock (a shareholder) has now bought a piece of the corporation and, depending on the type of shares held, may have a claim to a part of its assets and earnings.

Stock

A stop order is an order type that is triggered when the price of a security reaches the stop price level. It may then initiate a market or limit order.

Table of Contents
What Is a Stop Order?
How a Stop Order Works
Stop-Loss Orders for Bear Markets vs. Stop-Loss Orders for Bull Markets Stop orders are of various types: buy stop orders and sell stop orders, stop market, and stop-limit.
Stop orders are used to limit losses with a stop-loss or lock in profits using a bullish stop. Buy stop-limit orders are most often placed above the market price at the time of the order, while sell stop-limit orders are typically placed below the market price. Types of Stop Orders
A stop order is an order to buy or sell a security when its price moves past a particular point, ensuring a higher probability of achieving a predetermined entry or exit price, limiting the investor's loss, or locking in a profit. The investor has put in a stop-limit order to buy with the stop price at $180.00 and the limit price at $185.00.

Stop Order

A trader is an individual who engages in the transfer of financial assets in any financial market, either for themselves, or on behalf of a someone else.

Topic No. 429 Traders in Securities (Information for Form 1040 or 1040-SR Filers)

A trader is an individual who engages in the buying and selling of financial assets in any financial market, either for themself or on behalf of another person or institution. Investors tend to have a longer-term time horizon, while traders tend to hold assets for shorter periods of time to capitalize on short-term trends. Because traders frequently engage in short-term trading strategies to chase after profit, they can rack up large commission fees. A disadvantage of short-term trading profits is that they are usually taxed at the trader's ordinary income tax rate. Traders can be contrasted with investors, who seek long-term capital gains rather than short-term profits.

Trader

A trading platform is software through which investors and traders can open, close, and manage market positions through a financial intermediary.

A trading platform is software used for trading: opening, closing, and managing market positions through a financial intermediary such as an online broker. For example, day trading platforms may require that traders have at least $25,000 in equity in their accounts and be approved for margin trading, while options platforms may require approval to trade various types of options before being able to use the trading platform. Some trading platforms may be agnostic to a specific intermediary or broker, while other trading platforms are only available when working with a particular intermediary or broker. **TradeStation**: TradeStation is a popular trading platform for algorithmic traders that prefer to execute trading strategies using automated scripts developed with EasyLanguage. A trading platform is software used for trading: opening, closing, and managing market positions through a financial intermediary such as an online broker.

Trading Platform  and How to Pick One

Trading psychology refers to the emotions and mental state that help to dictate success or failure in trading securities.

Table of Contents
What is Trading Psychology?
Understanding Trading Psychology
Technical Analysis
Behavioral Finance
 Discipline and risk-taking are two of the most critical aspects of trading psychology since a trader’s implementation of these aspects is critical to the success of his or her trading plan. While technical analysis and charting techniques can be helpful in spotting trends for buying and selling opportunities, it requires an understanding and intuition for market movements that are derived from an investor’s trading psychology. Fear and greed are commonly associated with trading psychology, while things like hope and regret also play roles in trading behavior. Trading psychology can be associated with a few specific emotions and behaviors that are often catalysts for market trading.

Trading Psychology

A trading desk is where transactions for buying and selling securities occur, which is crucial to providing market liquidity.

Asset Managers Farm Out Trading as Costs and Complexity Climb

A trading desk is a physical location where transactions for buying and selling securities occur. Some common trading desks include:
**Equity trading desks** handle everything from equity trading to exotic options trading.
**Fixed-income trading desks** handle government bonds, corporate bonds, and other bonds and bond-like instruments that pay a yield.
**Foreign exchange trading desks** facilitate trading in currency pairs by acting as market makers. Many brokers also offer trading desks for their clients, especially in the foreign exchange market and equity day trading market. The personnel on trading desks receive clients' orders from the sales desk, which is in charge of suggesting trading ideas to institutional and high-net-worth investors. In addition to trading activities, trading desks also help clients with structuring financial products, watching for opportunities, or supporting agreements between companies and investors.

Trading Desk

The volume-weighted average price (VWAP) is a statistic used by traders to determine what the average price is based on both price and volume. Whether a price is above or below the VWAP helps assess current value and trend.

Table of Contents
Volume-Weighted Average Price The volume-weighted average price (VWAP) is a trading benchmark used by traders that gives the average price a security has traded at throughout the day, based on both volume and price. The volume-weighted average price (VWAP) is a measurement that shows the average price of a security, adjusted for its volume. This is because the VWAP weights each day’s price change by the amount of volume occurring in that day, whereas the simple moving average implicitly assumes that all trading days have the same level of volume. The volume-weighted average price (VWAP) appears as a single line on intraday charts (1 minute, 15 minute, and so on), similar to how a moving average looks.

Volume-Weighted Average Price (VWAP)

Whipsaw is a condition where a security's price is moving in one direction when it quickly changes and moves in the opposite direction.

Evaluating the Building Blocks of a Dynamically Adaptive Systematic Trading Strategy

Stocks whipsawed in a rollercoaster trading session — Here’s what three experts say investors can do next

Whipsaw describes the movement of a security when, at a particular time, the security's price is moving in one direction but then quickly pivots to move in the opposite direction. The second type occurs when a share price drops in value for a short time and then suddenly surges upward to a positive gain relative to the stock's original position.
Whipsaw describes the movement of stocks in a volatile market when a stock price will suddenly switch direction. A whipsaw references any price movement that is in the opposite direction of a trader's intended bet, often resulting in a loss, or if they are able, to ride out the fluctuations in price to maintain the investment and even realize a profit. Day traders expect whipsaw movements and often assume long-term, buy and hold positions to ride out the fluctuations in price to avoid a loss. Almost immediately after purchasing the stock, the company releases a quarterly report that shakes investor confidence and causes the stock to decline in value by more than 10%, never to recover.

Trading Skills and Essentials

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