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Most Widely Used Financial Markets Terminologies

There are a number of people in the world that deal with the investment of money in the stocks or forex markets and they have to analyze the market and come up with a future expectation of the market prices in order for them to execute the correct orders and thus avoid making losses. A successful investment in the forex or stocks market begins with one learning about the market and the factors affecting the market but you cannot understand all that until you first understand the forex and stocks language. Read more here to understand some of the common terminologies used in both the stock trading and forex trading markets.

When experts are viewing the market especially to determine the price at which a given security might close so as to find out whether the traders in the market are highly likely to purchase or sell off the security, it is usually said that they are practicing accumulation. We have a term that is referred to as after-hour trading and this simply means the act of venturing in the market after other traders and investors have stopped trading. Similarly we have another terminology such as arbitrage which simply means that one is trying to make some profit as a result of the differences in the prices of a certain security and this often takes place when that security is available in two distinct markets.

The other common terminology that is used in the financial market is asset allocation which is generally carried out so as to bring a balance between the expected losses and profits of a certain stock in the market. When one sells a stock in the financial markets, then there is a certain amount of money that is usually charged on the same known as the back end load. At times you might come across the terminology known as balance sheet and third simply means the compilation of all the capital invested in a company in the stock market, its assets and the liabilities that it has.

The other common terminology that you will find in the financial market is the balanced fund and it is usually used to refer to a certain kind of mutual fund that is comprised of more than one securities. In some instances, due to a number of economic and fundamental factors, the price of a certain security in the stock market might decrease in value to a certain percentage during a given duration and when that happens the market is usually said to be a bear market. There are certain instances when the price of a the market can go up in a given period time and in that instances the market is usually referred to as a bull market.

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