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ChartSmarts Glossary
One of the best sources of financial information, explanations and terms
is at Duke University's Financial
Glossary. This online glossary has been developed by Campbell R. Harvey, and is by far
one of the most extensive terminology resources we have ever come across. Terms that may be used specifically in ChartSmarts are listed below. Be
sure to check out the ChartSmarts Legend for additional
symbols, rules, and abbreviations.
Some Common Terms and Abbreviations Used in ChartSmarts:
| EOD |
= |
End of day |
| ID |
= |
Intraday |
| BO |
= |
Breakout |
| T-Line |
= |
Trendline |
| NP (-/+) |
= |
Negative-Positive pattern |
| PN (+/-) |
= |
Positive-Negative pattern |
Buy a print
A "print" is a reported trade. So, buying a print means that should the
price touch the stated entry level, a market order to buy should be entered. You
may be able to enter this order as a "buy stop" through your broker. A buy stop
is an order that only becomes active once the stop price is reached. Once a trade occurs
at or above the stop price, the order becomes a market order to buy.
The converse is also true; you can "sell a print
of" a given price through the use of a "sell stop". A sell stop is an order
that only becomes active once the stop price is reached. Once a trade occurs at or below
the stop price, the order becomes a market order to sell or sell short. Please check with
your broker to see if they will take such orders.
Limit order/limit buy
An order to buy a stock at or below a specified price, or to sell a stock at or above a
specified price. The customer specifies a price, and the order can be executed only if the market reaches or betters that price. A
conditional trading order designed to avoid the danger of adverse unexpected price
changes.
Selling short (short sale)
Selling a stock not actually owned. If aninvestor thinks the price of a stock is
going down, the investor could borrow the stock from a broker and sell it. Eventually, the
investor must buy the stock back on the open market. For instance, you borrow 1000
shares of XYZ on July 1 and sell it for $8 per share. Then, on Aug. 1, you purchase 1000
shares of XYZ at $7 per share. You've made $1000 (less commissions and other fees) by
selling short.
Short-sale rule An SEC rule requiring that short sales be made only in a
market that is moving upward; this means either on an uptick from the last sale, or
showing no downward movement.
Stop-loss order
An order to sell a stock when the price falls to a specified level, or to cover a
short-sal when the price increases to a specified level.
Stop order (or stop) An order to buy or sell at the market when a
definite price is reached, either above (on a buy) or below (on a sell) the price that
prevailed when the order was given. This type of order can be used to initiate a long or
short position.
Market-on-Close (MOC) order An order to trade stocks, options, or futures
as close as possible to the market close.
Market order
Used in the context of general equities. Order to buy or sell a stated amount of a
security at the most advantageous price obtainable after the order is represented in the
trading crowd. You cannot specify special restrictions such as all or none (AON) or good
'til cancelled order (GTC) on market orders. See: Limit order.
Market-if-touched (MIT)
A price order, below market if a buy or above market if a sell, that automatically
becomes a market order if the specified price is reached.
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