Welcome back to our another interesting blog on “10 most frequently used JARGONS IN STOCK MARKET!”
Remember one thing, STOCK MARKET is not gambling!
Here we go,
1. BULL MARKET:
- If you think the stock price may rise, then you are bullish on the stock price.
- Broadly speaking, if the stock market index rises within a certain period of time, it is called a bull market.
2. BEAR MARKET:
- If you think the stock price may fall, then you are bearish on the stock price.
- On account of a broader sense, if the stock market index falls within a certain period of time, it is called a bear market.
- The term “trend” usually refers to the overall market direction and its associated advantages.
- For example, if the market declines rapidly, the trend is considered bearish.
- If the market is stable and there is no movement, then the trend is horizontal.
4. FACE VALUE OF A STOCK:
- The face value (FV) or face value of a stock represents the fixed denomination of the stock.
- Face value is important for company behavior.
- Usually, when dividends are announced and stock splits are made, the issuance will be carried out while maintaining the par value.
5. 52 WEEK HIGH / LOW:
52 WEEK HIGH:
- The 52-week high is the highest trading point of the stock in the past 52 weeks (also marking a year).
52 WEEK LOW:
- Similarly, the 52-week low is the lowest trading point of the stock in the past 52 weeks.
COMBINED 52 WEEK HIGH/LOW:
- The 52-week highs and lows give you an idea of the stock’s trading range during the year.
- Many people believe that if the stock reaches a 52-week high, it indicates a bullish trend in the foreseeable future.
- Similarly, if the stock price drops to a 52-week low, some traders believe that this indicates a bearish trend for the foreseeable future.
6. ALL TIME HIGH / LOW:
- This is similar to the 52-week high and low prices, the only difference is that the historical high is the highest trading price of the stock since its listing.
- Similarly, the historical low is the lowest trading price of the stock since its listing.
7. UPPER CIRCUIT / LOWER CIRCUIT:
- The highest price that a stock can reach on that day is the upper circuit limit.
- When stocks enter the upper loop, investors who have already invested in stocks will gain an advantage.
- The lowest price that a stock can reach on that day is the lower circuit limit.
- In case, when the stock price drops, there will be only sellers and no buyers.
UPPER AND LOWER CIRCUIT COMBINED:
- According to the selection criteria of the exchange, the stock limit is set to 2%, 5%, 10% or 20%.
- When stocks react to certain news related to the company, the exchange sets these limits to control excessive volatility.
8. LONG / SHORT POSITION:
- They are only a reference for your trading direction.
- If you hold a long stock or index, you are said to be bullish.
- Shorting or simply “shorting” is a term used to describe transactions in a specific order.
- When establishing a short position, it is necessary to understand that the trader has limited profit potential and unlimited loss potential.
9. SQUARE OFF:
- Square off more or less intends to the closing of current position.
- If you hold stocks for a long time, then a position means selling stocks.
- If you hold stocks for a short time, then a position means repurchasing stocks.
10. INTRADAY POSITION:
- This is a trading position that you initiated and expect to close it on the same day.
- Such kind of trading position is termed as to be ‘intraday position.’
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