Glossary Archives - Tradingsim
Glossary

Swing High – Peak Price Movement

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Swing High Definition A swing high is a peak in price movement for an asset. A swing high can occur on any trading time frame. Swing highs are based on the number of data points in a series. So, if you are looking back over the past 3 bars, you will want to find the highest price peak in the1 Read the full article >

Glossary

Philadelphia Semiconductor Index (SOX) – Chip Industry

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What is the SOX? The Philadelphia Semiconductor Index (SOX) is one of the most heavily traded indices on the Philadelphia Stock Exchange. The SOX is a price weighted index of the 19 U.S. semiconductor companies. The SOX is comprised of 15 chip makers and 4 semiconductor equipment makers. Due to the advent of the computers, the SOX has been one1 Read the full article >

Glossary

Opening Bell – 2 Simple Trading Strategies

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In this article, I will cover two basic trading strategies you can utilize during the market open.  But first, let’s discuss what drives the madness shortly after the opening bell. Like many other newbie traders, I thought, "the money is in the morning!!". Well, yes and no. If you have a few thousand day trades under your belt, then yes1 Read the full article >

Glossary

Basics of Equity Trading

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What is Equities Trading? The term equity trading and stock trading are sometimes used synonymously; however, there are a few minor differences between the two. Let’s start with the basic definition; equity trading is essentially the purchase or sale of company stock through one of the major stock exchanges, just as stock trading is. An equity trade can be placed1 Read the full article >

Glossary

Days to Cover and Short Squeezes

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Definition of Days to Cover Days to cover is a formula which tracks the number of shares short in the market relative to the available float.  This allows a trader to see how bearish or bullish traders are on a security.  The last component of the ratio is the amount of daily volume.  If you know the number of shares1 Read the full article >

Glossary

Market Maker

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Market Maker - Overview A market maker is a dealer that buys and sells securities for their clients, firms, or their own individual accounts. Market makers primarily operate on the Nasdaq Stock Exchange and provide the structure and order for trading. Market makers unlike specialists or floor traders can work remotely from offices. Market makers trade on an electronic system1 Read the full article >