Trading Strategy

False Breakout: Understanding the Market Phenomenon
A False Breakout occurs when a security's price moves beyond a support or resistance level but fails to maintain momentum, often leading to a reversal.
Forward Testing: Validating a trading strategy in real-time
Forward Testing involves validating a trading strategy using real-time data subsequent to backtesting. This process ensures the robustness and practicality of the strategy before actual deployment in live trading.
Short Position: An Overview
A comprehensive guide to understanding short positions in trading, including historical context, key events, explanations, formulas, importance, examples, and related terms.
Spread Strategy: Options Strategy with Differing Terms
An options strategy involving the purchase and sale of two or more options with differing terms to capitalize on different market conditions.
Theta Hedging: Managing Option Decay
Theta Hedging is a strategy used in options trading to manage the decay of an option's price as it approaches expiration, providing a critical tool for traders looking to minimize the adverse impact of time decay.
At The Market: Immediate Execution at Current Prices
An 'At The Market' order, also known as a market order, is an instruction to buy or sell a security immediately at the best available current price.
Dividend Rollover Plan: Strategy for Collecting Dividends and Potential Profits
A comprehensive guide on the Dividend Rollover Plan, a trading strategy centering on the timing of stock purchases and sales around ex-dividend dates to collect dividends and aim for small trading profits.
Going Long: Investment and Speculation
Exploring the concept of 'Going Long' in investment and speculation, covering its definition, types, considerations, examples, historical context, and comparisons.
Tick: Upward or Downward Price Movement in a Security's Trades
An in-depth explanation of the tick in stock trading, describing its significance, types, and usage by technical analysts to determine price trends.
Binomial Option Pricing Model: Iterative Options Valuation Method
Comprehensive explanation of the Binomial Option Pricing Model, an iterative procedure for node specification in option valuation over a set period. Includes types, applications, examples, and comparisons.
Bullish Abandoned Baby: Definition, Identification, and Trading Strategy
The Bullish Abandoned Baby is a rare yet powerful candlestick pattern used by traders to identify potential reversals of downtrends. This article provides a comprehensive definition, identification criteria, and trading strategies for utilizing this pattern effectively.
Double Exponential Moving Average (DEMA): Enhanced Technical Indicator with Reduced Lag
Explore the Double Exponential Moving Average (DEMA), a technical indicator offering reduced lag compared to traditional moving averages. Preferred by short-term traders for its enhanced responsiveness.
Envelope Technical Indicator: Definition, Functionality, and Example
Discover the Envelope Technical Indicator, its working principles, and a practical example. Enhance your trading strategies with a comprehensive understanding of price chart boundaries.
Grid Trading: Comprehensive Definition and Guide
Explore the intricacies of grid trading, a strategic approach commonly used in the forex market involving the placement of buy and sell orders around a central price point. Learn how this method creates a 'grid' and helps traders capitalize on market volatility.
Kairi Relative Index (KRI): Definition, Calculation, and Examples
Learn about the Kairi Relative Index (KRI), a technical analysis indicator used to identify potential buy and sell points by assessing overbought and oversold conditions. Understand its definition, calculation, historical context, and practical application.
Pullback in Trading: Definition, Examples, and Key Insights
A comprehensive guide on pullbacks in trading, including definitions, examples, historical context, and important considerations for traders.
Volatility Arbitrage: Understanding the Strategy and Mechanics
Explore the intricacies of volatility arbitrage, a sophisticated trading strategy that leverages differences between forecasted future price volatility and actual market movements to generate profit.
Volume-Weighted Average Price (VWAP): Definition, Calculation, and Application in Trading
A comprehensive guide to understanding the Volume-Weighted Average Price (VWAP), including its definition, calculation, historical context, and application in trading strategies.
Win/Loss Ratio: Understanding Its Role in Trading Success
Explore the win/loss ratio, a critical metric in trading. Learn its definition, formula, examples, and role in assessing the efficacy of trading strategies.

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