What is a Trading Strategy? A trading strategy is a fixed plan for buying and selling securities designed to generate a profitable return on the investments. It should be objective, consistent, quantifiable, and verifiable. The strategy is founded on fundamental or technical analysis so that inevitable systemic risks do not lead to catastrophic effects on financial...
What is Trading Software? Trading software are computer programs that traders use to trade and analyze financial products such as currencies, stocks, bonds, and derivatives over a network with a financial intermediary, which can be a broker, market maker, or stock exchange. Investors can use trading software to place trades from any location. Trading software...
What is a Trading Range? A trading range is the vertical price movements between a resistant ceiling and a support floor for a period of time. Trading range often occurs in all financial markets in which the price resistance is provided by the top of a security’s trading range, while the price support is offered...
What is a Trading Plan? A trading plan refers to a systematic approach used to identify and trade securities based on several variables, such as investment objectives, risks, and time. A trading plan lays out procedures and conditions under which to search for asset classes and execute trades. The underlying elements of a trading plan...
What is a Trading House? A trading house is a business that facilitates trade between two countries – i.e., a foreign country and a home country. It provides a service that eliminates trading barriers to enter into foreign markets, especially for small companies with limited resources or import or export capability. Trading houses promote both...