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Most Widely Used Financial Markets Terminologies

Stock trading and forex trading involve the investment of money and then predicting the future value of the stocks or currencies and thus deciding whether to buy or sell the stocks or currencies in order to make profit. 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. As you read more here you will get to find out and understand the new words that are used in the finance markets and what these words actually mean.

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. There are traders who still remain in the market to buy or sell the securities in the market even after the regular market trading hours have surpassed and such traders are usually known as after-hours traders. 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. A back end load can be defined as a certain commission that is required of a trader to pay after he or she sells off a stock in the financial market. When a company is involved in the stock market, there is usually a balance sheet which basically comprises of the assets and liabilities of that particular company as well as the finances that it gets from the various shareholders.

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. When you hear of a bear market then what that simply means is that the market prices are decreasing at a certain percentage after a certain period of time. When the price of a given stock or security in the stocks trading market gains value at a certain percentage and within a specified time frame, then the experts usually say the market is a bull market.

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