Hey Everyone!

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.

3. TREND:

  • 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:

  • UPPER 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.
  • LOWER CIRCUIT:

  • 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:

  • LONG POSITION:

  • They are only a reference for your trading direction.
  • If you hold a long stock or index, you are said to be bullish.
  • SHORT POSITION:

  • 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.’

 

 

WE HOPE THAT, YOU ALL LIKED THIS BLOG AND GAINED A LOT of WORTH THINGS!

THANK YOU FOR INVESTING YOUR TIME!

 

Something Wrong Please Contact to Davsy Admin

One Thought to “10 MOST FREQUENTLY USED JARGONS IN STOCK MARKET”

  1. Sarthak Deshpande

    Amazing content. Got to know many jargons and their meaning….💯

Leave a Comment