Glossary of investment terms – part I
09-12-2024
Glossary
Training presentations, articles, videos, manuals - these are just some of the many educational materials available for people who want to start their adventure with investing. Feedback of Lion Money Partners confirm that it is one of the trusted sources that are the provider of this type of content. In addition, it should be remembered that investors on the stock market use specific language and terms that are not understood at the very beginning of the adventure. Fortunately, dictionaries of the most important terms are available for them. You don't have to learn all the definitions related to investments right away. Everything comes with time, but you can't successfully enter the market without understanding the basics. It is worth using sources that present them in a simple, clear and legible way.
In addition, some of these types of websites use a division into terms for beginners, intermediate and advanced learners, so that it is easier to adapt them to your current level. Putting the words into practice makes it easier to learn them. For more useful content, it is worth visiting the Lion Money Partners portal.
Remember about these concepts...
Some terms are similar to words used in everyday life, but they mean something very different. Training presentations from Lion Money Partners will help you refresh your knowledge, m.in. It is an investment portal that provides the most important information from the world of investment.
- The first concept you should know is penny. It means a company whose shares are trading below PLN 1.
- What are futures contracts commonly called? They are simply... Horses.
- The foreign-sounding word "ticker" refers to the 3-character abbreviation of the company issuing the shares or bonds.
- One phenomenon that is familiar to people who gamble on the stock market is when stocks are sold at a small loss in order to avoid larger losses on the account. This is one of the capital protection strategies, but it is quite risky, especially in a market where there are difficulties with liquidity. In such a case, even small orders can significantly shake the exchange rate, which can result in automatic sales at an unfavorable rate. However, the whole phenomenon can be described much more simply, in two words. If someone sells a stock at a small loss to prevent a bigger one, it is said that he cuts his losses.
- A rather funny term has been given to the phenomenon of buying with all the funds in the investor's account. Such a person... buys a whole meatloaf.
- Day trading is a strategy of short-term investment in financial instruments based on opening and closing positions on the same day. One variation of this strategy is the one involving placing trades on very fast and short price movements. This action is called scalping.
- If a financial instrument has changed its price minimally, it is said that a tick has occurred.
- But what is the difference between the lowest bid and the highest bid called? This is the spread. When opening a position in a given market, the spread is the main cost of trading. It can also be seen as the minimum distance that the market needs to move for a player to generate a profit.
- Many investors are familiar with the situation in which they are waiting for information to appear any day now. This is info on the equator.
- Interestingly, the Chairman of the Trading Session also had a humorous name for himself. The term Fork comes from the static and dynamic spreads in quotations, the change of which is decided by the Chairman of the Trading Session.
- The market is full of different types of players. Each of them chooses a different strategy, is able to invest more or less funds. Small individual investors sometimes have little money to invest. Such people are called a street.
- Shares can be sold with the value disclosed to the WUJ (without showing the entire order volume). This behavior is called stealth spending.
Of course, these are not all important concepts that a novice investor should know. Some of them are used more often, others less frequently, depending on the specific environment. As you can see, stock market jargon is largely funny, which is why it may surprise the uninitiated. However, the use of individual terms quickly becomes a habit, and new players are able to feel like fish in water among other investors. It is worth combining education on different levels and using different materials. They are made available, m.in, by the investment portal Lion Money Partners. However, when looking for sources of knowledge, you should pay attention only to the most reliable ones. These include good manuals, blogs, or advice from more experienced investors. Feedback about Lion Money Partners from existing users show that this portal can also be considered one of the reliable sources.
Getting started in the world of investing can be difficult, but understanding the most important principles and concepts is not impossible. Fortunately, there are now clear glossaries that explain the most important issues in a way that is accessible and understandable even for beginners. In addition, the more experienced should also constantly improve their skills, as the market is changing dynamically. Investing issues should be a daily reality for every person buying assets.