Trading Terms, Day trading terminology, Technical jargons

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Trading Terms, Day trading terminology, Technical jargons, Long,Short,Entry,Exit,Target,Stoploss,Trailing stoploss,BTST/STBT


Long

Having a "long" position in a security means that you own the security. Investors maintain "long" security positions in the expectation that the stock will rise in value in the future. In other word it means we have bought this security

Short-

A short, or a short position, is created when a trader sells a security first with the intention of repurchasing it or covering it later at a lower price. A trader may decide to short a security when she believes that the price of that security is likely to decrease in the near future.

Entry-

Entry point refers to the price at which an investor buys or sells a security. A good entry point is often the first step in achieving a successful trade.

Exit-

An exit point is the price at which an investor or trader closes a position

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Target-

A price target an analyst's projection of a security's future price. It is the price at which trader plan to exit the trade and book its profit

Stoploss-

Stop-loss can be defined as an advance order to sell an asset when it reaches a particular price point. It is used to limit loss or gain in a trade.

Trailing Stoploss-

A trailing is a modification of a typical stop order that can be set at a defined percentage or amount away from a security's current market price.

BTST/STBT-

Whenever you buy shares, you have to wait for them to be delivered into your demat account before you can sell them. It takes two trading sessions for delivery to come into your account. If the stock price moves up the very next day, you cannot sell it. This is possible if your broker offers you the Buy Today Sell Tomorrow (BTST) facility, where the investor can sell shares that he has purchased even before he receives the delivery of the same from the exchange, thereby giving him higher liquidity. Whereas Sell Today Buy Tomorrow (STBT) is a facility that allows customers to sell the shares in the cash segment (shares which are not in his demat account) and buy them the next day.


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