Important Terminology

Buying and selling financial instruments within the same trading day

A short-term trading strategy that involves making multiple trades in a short period of time to profit from small price movements

An order to sell a security when it reaches a certain price, intended to limit losses

An order to buy or sell a security at a specific price or better

An order to buy or sell a security at the best available price

The difference between the bid and ask prices of a security

The degree of variation of a security's price over time

The ease with which a security can be bought or sold in the market

Borrowed funds used to purchase securities

The amount of margin required to day trade a particular security

When trading, "long” refers to buying a security with the expectation that its value will increase, while "short” refers to selling a security with the expectation that its value will decrease.