OHLC bar charts

OHLC Bar Chart Example – Disclaimer: Charts for financial instruments in this article are for illustrative purposes and does not constitute trading advice or a solicitation to buy or sell any financial instrument provided by Admirals (CFDs, ETFs, Shares). Past performance is not necessarily an indication of future performance. An OHLC bar chart shows a…

Line charts

A line chart connects the closing prices of the time frame you are viewing. So, when viewing a daily chart the line connects the closing price of each trading day. This is the most basic type of chart used by traders. It is mainly used to identify bigger picture trends but does not offer much…

Short trade

You sell a currency with the expectation that its value will decrease and you can buy back at a lower value, benefiting from the difference. The price at which the currency pair trades is based on the current exchange rate of the currencies in the pair, or the amount of the second currency that you…

Long trade

Buying a currency with the expectation that its value will increase and make a profit on the difference between the purchase and sale price. Undated Long Trade EUR/USD Example – Disclaimer: Charts for financial instruments in this article are for illustrative purposes and does not constitute trading advice or a solicitation to buy or sell…

Price and Quote

When you trade Forex, you will see Ask and Bid prices. One of the things you should keep in mind when you want to learn Forex from scratch is that you can trade both long and short, but you have to be aware of the risks involved in dealing with a complex product.

Blue Chip Stocks

These are stocks in big, industry-leading firms. Many traders are attracted to Blue chip stocks because of their reputation for paying stable dividend payments and demonstrating long-term sound fiscal management. Some believe that the expression ‘blue-chip’ derived from the blue chips used in casinos, which are the highest denomination of chips.

Dividend

A proportion of the earnings of a company that is paid out to its shareholders, the people who own their stock. These dividends are paid out either quarterly (four times per year) or annually (once per year). Not every company pays its shareholders dividends. For example, companies that offer penny stocks likely don’t pay dividends.

Day Trading

This when traders buy and sell within a day. Day trading is a common trading strategy. However, if someone day trades, they may also make long term investments as well (a long-term portfolio). The following two terms only apply to share trading:

Close

This is the at which an exchange closes and trading stops. Regular trading hours for the NASDAQ and the NYSE are from 9 a.m. to 4:30 p.m. Eastern time. After-hours trading continues until 8 p.m.