This is a crucial step in executing a trade to protect from unexpected negative market moves and is part of your risk managed strategy. A stop-loss is a computer command entered when you are executing your trade that instructs the platform to close your position is the market moves against you. You set the level and you can change this setting when you wish. It will protect you from unexpected headlines and panic in the marketplace.
The price that the market is at when an option is opened.
The spread is the difference between the ASK and the BID price of an asset. All assets are quoted in a BID/ASK scenario. To better understand look up bid and ask in the glossary. The spread is small but can eat into your profits or magnify your losses as you must execute two sides of a trade to open and then close a position. Spreads for the most commonly traded assets are relatively small.
This is the difference between the price that was requested and the price obtained typically due to changing market conditions. Assets move continuously and the price shown on the platform is up to the moment but the price when you book a trade could have changed slightly as it takes just a few seconds for you to enter and complete a trade while the market never sits still.
Is the opposite of long, it means selling an asset or a falling market. An investment position that benefits from a fall in market price. When the base currency in the pair is sold, the position is said to be short. You are hoping that the market falls.
One of the four types of underlying assets. Stocks refer to shares of a company that people can purchase. Companies like Apple, Sony, Disney, and more are all commonly traded companies on the stock market.
When the trader has chosen a downward direction for the asset price.