What is a Trading Curb? A trading curb is a temporary trading halt imposed in an effort to reduce market volatility and massive panic sell-offs. It is also called a circuit breaker and is instituted to reduce market volatility and information asymmetry by giving traders enough time to respond with full information. Amid extreme market…
What is a Trading Channel? A trading channel is a chart pattern highlighted by two parallel lines bordering resistance and support within which a security trades during a period. Within a valid uptrend trading channel, an opportunity to buy into the uptrend is indicated by subsequent bounces up off the support level at the point…
What is Trading Authorization? Trade authorization is the level of power or authority extended to a broker or an agent by a client to execute all transactions, thereby establishing accountability of the trading accounts and assets. The trading authorization concept is relatively similar to a power of attorney and is established before a new agent…
What is a Trading Account? A trading account is an online investment account that traders use to purchase securities and monitor trades. It allows investors to buy and sell securities such as shares, commodities, foreign exchange, etc., in the public market. A trading account may also refer to a primary account for a day trader….
What are Trading Assets? Trading assets are securities that firms hold to resell for profit, rather than holding them for investment. They include different account components from the investment portfolio. Trading assets may include bonds and other fixed-income securities, positive market values from derivative financial instruments, foreign exchange rate contracts, as well as equity shares…
What is Technocracy? Technocracy is a form of government where people with immense knowledge in science and/or with technical expertise in an area, are elected to public office. The decision-makers are known as technocrats, and they are appointed or elected to hold office based on their expertise in a given field of knowledge. Consequently, the…
What are Technical Skills? Technical skills are the prerequisite expertise needed to perform complex tasks. Although the scope of a complex task is wide, it entails any task in which the response requires more than a single interaction, otherwise known as a multicomponent task, such as computational or physical technology. Practitioners versed in any subject’s…
What are Technical Job Skills? Technical job skills are unique knowledge and skills that an individual acquires and uses in executing complex tasks in their employment. Technical skills are synonymous with hard skills, and they are the opposite of soft skills. Technical job skills are acquired through education and extensive training and may become obsolete…
What is a Technical Indicator? A technical indicator is a mathematical pattern derived from historical data used by technical traders or investors to predict future price trends and make trading decisions. It uses a mathematical formula to derive a series of data points from past price, volume, and open interest data. A technical indicator is…
What is a Technical Analyst? A technical analyst is a professional with skills and relevant knowledge to explore the financial market and derive relevant temporal patterns that provide critical trading information. Technical analysts often work in brokerage houses, financial institutions, or in finance and investment agencies. Although most technical analysts focus on only one or…
