The amount of money in an account at the start of a business day, including all deposits, withdrawals and/or other cash and cash equivalents (= credits minus debits).
If a trader has decided to close an open position, the account balance will be changed in accordance to his/her profit or loss amount.
The ask price, also known as the “offer” price, will almost always be higher than the “bid” price (= the highest price a broker is willing to pay to buy a security at any given time).
Brokerage firms typically make money on the difference between the bid price and the ask price.
This difference is called the “ask-bid spread.” A type of chart, widely used by traders and financial professionals, which is represented by horizontal rectangular bars with lengths proportional to the magnitudes of what they represent.
The top of the bar is the highest point the price reached during a defined period and the bottom of the bar is the lowest.
A dash on the left-hand side of the bar denotes the opening price and a dash on the right-hand side the closing price for that period.
In currency pairs, the first currency is the “base” currency (numerator) and the second currency is the “quote” currency (denominator). Therefore, the quoted currency expresses the amount of the second currency compared to one base currency.
In the British pound sterling/United States dollar currency pair (GBP/USD), for example, the value of the dollar is expressed in terms of one pound.
A market condition in which the prices of securities are falling 20% or more.
It is generally accompanied with widespread pessimism that, in turn, sustains the flow of negative sentiments.
Its opposite is a bullish market, in which the sentiment towards prices is positive.
In the over-the-counter market, the term “bid” refers to the highest price at which a market maker or broker is willing to pay in order to buy a security (e.g.