Stock Trading Terms: Financial Education Is Your Best Investment

Investing Strategies & Market Analysis for Options, Futures, Forex & Day Trading

By: Thomas Herold

Narrated by: William Bahl

Length: 11 hrs and 22 mins

Publisher's Summary

Essential stock trading terms you should know.

Whether you're a new investor or a seasoned pro, it helps to have a solid glossary at your fingertips to provide quick clarification on a particular term or to expand your overall stock market vocabulary.

Understanding the stock market can be a daunting task for any new investor. Not only are there many concepts and technical terms to figure out, but nearly everybody is trying to give you advice.

This practical glossary audiobook compiles a list of 150 most common stock trading terms you’re likely to encounter. Every stock trading term is explained in detail, with clear and concise article style description and practical examples.

This practical stock trading guide helps you understand:

• Day Trading
• Fibonacci & Swing Trading
• Forex Trading
• Options Trading
• Commodity Trading
• Crypto Trading
• Futures Trading

To fully get to grips with learning the stock market, you first need to understand all the different terminology that is often used. Use this practical stock market terminology guide with its alphabetical index. Consult for stock trading terms and lingo that will help you understand the markets better. 

Make stock trading less of a mystery.

Deep knowledge of stock trading will greatly reduce the possibilities of losing money. That’s why it helps a lot to have the stock market terms in the back of your mind, and understand various trading strategies, before taking the plunge.

PLEASE NOTE: When you purchase this title, the accompanying PDF will be available in your Audible Library along with the audio.

©2019 Thomas Herold (P)2019 Thomas Herold

See the possibilities

Wall Street is a physical street that is seven blocks long and runs from Broadway to the New York East River. It lies to the south of the Manhattan borough of New York City. The street is incredibly significant because it has played host to a number of the most important financial entities in the United States.

The city originally got its name because of an earthen built wall that Dutch Settlers of the city erected in 1653 to ward off an anticipated invasion of the English. The street’s importance grew so rapidly that before the Civil War in America this was already known as the nation’s sole financial capital. In the district of Wall Street there are many important buildings and headquarters.

The street contains the Federal Reserve Bank, the New York Stock Exchange, the International Commodity, Cocoa, Sugar, Coffee, and Cotton Exchanges, and the NYSE Amex Equities. There are also numerous municipal and government bond dealers, investment banks, trust companies, and insurance and utilities’ headquarters located here. A great number of the major American brokerage firms have their headquarters in this financial district.

Because of Wall Street, New York City is sometimes called the most important financial center in the world as well as the greatest and most powerful city economically. Investors find the two biggest stock exchanges in the world as measured by market capitalization here in the NASDAQ and the New York Stock Exchange. A few other significant exchanges also make or made their headquarters here. These are the New York Board of Trade, The New York Mercantile Exchange, and the one time American Stock Exchange.

Quickly grasp the context without using jargon.

I particularly appreciated the easy to use-alphabetical table of contents. It was written with an emphasis to quickly grasp the context without using jargon. Every terms is explained in a well detailed manner. This book is equally valuable to the experienced and the novice reader.

Amazing For Trading career

Bitcoin is the name of a new electronic currency. An unknown individual who called himself Satoshi Nakamoto created this currency in 2009. This world’s first widespread virtual currency appeals to many individuals because there are no banks or governments involved in issuing, trading, spending, or processing the transactions. There are also no transaction fees involved. Owners do not have to provide their actual identity to use them.

Bitcoin users like that they are able to purchase goods and services completely anonymously. They also enjoy the inexpensive and simple to use international payment system. This exists because this currency is not heavily regulated nor tied to any single bank or nation. Small businesses tend to like Bitcoin since they do not have to pay any credit card usage fees.

There are several ways to obtain these Bitcoins. Users buy them on open marketplaces known as Bitcoin exchanges. Those who wish to have them can buy and sell it with a variety of different currencies. Mt. Gox was the largest Bitcoin marketplace until it spectacularly collapsed and went bankrupt. Many clients who held their Bitcoins at Mt. Gox lost most of their money there at the time.

It was well explained.

It's almost like a regular book but its a dictionary. It's very expanded and explains a lot for someone new to finances. It taught be about a lot that I need to know in the stock market world and painted a picture that regular dictionaries just leave in the wind after one sentence.

does cover all financial terms

It has relevant terms that were explained and does cover all financial terms I wanted to know especially stock trading terms.

Invaluable resource!

Swing trading refers to a wide range of shorter time frame trading strategies used in the stock market. Once a purview of only wealthy or professional full time traders this form of trading has become far more broad-based and accessible to regular investors. This is thanks to the vast proliferation over the past few years of the Internet revolution, an explosion in information and charting capabilities, and a range of affordable, efficient and fast online trading platforms. Those who practice swing trading try to realize gains in a financial instrument such as stocks by holding them for from only overnight to even several weeks. The majority of swing traders will employ a technical analysis to consider various stocks that might offer shorter term momentum in price. It is possible that such traders will also use intrinsic fundamental analysis of the stocks alongside their analysis of patterns and trends in the price. Because swing trading requires speed and availability to execute these types of trades, the majority of those traders or investors who utilize it are day traders or those who work from home. The institutional traders work with enormous sizes which prohibit them from quietly entering and exiting stock trades. It is the individual lone-wolf trader who can take advantage of these shorter-term movements in the prices of stocks. They have the advantage of not having to go head to head against the large investors of the trading business.

Very clear and concise!!!

This really is the easiest to understand and use financial dictionary I have seen. The language is clear and concise, I also like the authors voice - very clear and well articulated.. I recommend it to anyone who wants to get a handle on the financial world and personal finance for himself or herself.

What a great resource!

What a great resource! The best thing about the book is that the terms are in alphabetical order; so, you don't have to use an index to find what you need. I love this book so much!

essential volume

Whether you are a layperson or someone working within the various fields of finance itself, this is an indispensable reference book to have at your fingertips. For me, this essential volume belongs in everyone’s library, virtual or otherwise!

extremely helpful and shed clarity on concepts

This book is a great primer for many financial terms and definitely helps to explain a lot of terms that I have heard of, but didn’t really understand. As someone who is beginning the planning process of starting to do trading, this book was extremely helpful and shed clarity on concepts that previously seemed overwhelming.

You can learn alot!

Arbitrage refers to the practice of taking advantage of the price imbalances sometimes arising in two or even more markets. People who work in foreign money exchange run their whole businesses on this model. As an example, they look for tourists who require a rapid exchange of their cash for the local currency. Tourists agree to accept this local money for a lower amount than the actual market rate, and the money changer gets to keep the spread created by the higher rate that he charges them for the local currency. This spread that the different rates create becomes his profit.

Arbitrage is typically employed to discuss opportunities with investments and money rather than price imbalances for goods. Because of arbitrageurs operating in various markets whenever they spot opportunities, the prices found in the higher market will commonly drop while the prices in the lower market will usually rise so that they meet somewhere around the middle of the price difference. The phrase efficiency of the market then deals with the rate of speed at which these differing prices converge towards each other.

There are people who make arbitrage their livelihood. Working in arbitrage offers the possibilities of lucrative gains and profits. It does not come free of risk though. The greatest danger is that the prices may change rapidly between the varying markets. As an example, the spreads could rapidly fluctuate in only the tiny amount of time that is necessary for the two transactions to take place. In instances where these prices are moving quickly, arbitrageurs may not only find that they missed the chance to realize the profit between the differences in the prices, but that in fact they lost money on the deal.

Very well organized and explained book.

This is a book thought for those beginning in the stock and financial markets. The terms discussed is not an obstacle for a very well organized and explained book. It is not a dictionary of stock trading terms, it is a big notebook that you can check out every time you need to, when a doubt arises or an economic article full of those confusing words that you're not familiar with.

Learned a lot

It was an amazing experience. Learned lot of new things. Thanks for you wonderful 150 most common stock trading terms and guidance.

Wealth of knowledge

I am very pleased with the knowledge I have gained, in fact I am constantly revising sections of the coarse after practicing the setups provided. I have found the coarse very valuable it has already improved my win/ loss ratio on paper trades. no doubt with more practice I will gain the experience in becoming a profitable trader.
In my opinion Herold is a wealth of knowledge and look forwarded for updates to the course, well done.

Detailed Info That Helps

Capital Inflow refers to money (in the form of investments) moving into a certain benefitting nation. The country which is the recipient of the inflow is best known as the host country. The source countries are the ones sending or investing the initial funds. Host nations often have a range of causes for attracting such capital inflows.

Direct foreign investment occurs when multinational corporations purchase literal tangible assets in the host country. This could come in the form of purchasing a local company outright or building a manufacturing plant locally. There could also be portfolio investment in the host nation’s financial securities. This might include bonds and stocks which may be bought by international banks, foreign residents, insurance companies, pension funds, hedge funds, or other cross-border groups.

A third way that this occurs is when host governments are forced to borrow money off of international governments or foreign banks in order to pay their deficit on the balance of payments. It also occurs when domestic corporations or citizens elect to borrow from foreign banks. Finally intercompany transfers can finance investment and consumption in this category of capital inflow.

A last form of capital inflow happens when the host country has higher interest rates than the source nations’ own corresponding rates. In this scenario, shorter term deposits will often flock to the banks’ and money market instruments of the host nation. This could be straight up investment or speculation that the host national exchange rate will increase and so lead to a capital gain. This is the opposite of capital outflows. Outflows occur as funds move out of the host nation into other competing countries for the same reasons detailed above.

There are many beneficial effects to a country which receives capital inflows. As money comes into the host country via a business or stock purchase on the nation’s stock market exchange, the recipient firm will deploy the funds either for startup purposes or to expand their existing business products and lines. This is really good for the companies which receive the funds. Such expansion of the companies in question then leads both job creation and employment growth in the host nation. Businesses will finally realize profits utilizing the original capital investment and the projects they subsequently fund with it. With these profits, the company is able to pay for additional expansion or investment in other projects and/or financial investments.

Familiarize yourself w/ these Stock Trading Terms.

If you need to familiarize yourself with the language of trading and investing this book is a pretty good place to start. This is an excellent reference guide that will answer most, if not all, of your financial terms and definitions questions succinctly. The author is absolutely knowledgeable in his forte.

The flow between the sections is very smooth.

It explains all the terminologies briefly but clearly. The flow between the sections is very smooth. The quality narration in the lectures are put up in very neat, clear and understandable manner. The pronunciation of the speaker and sound quality are also very clear without any lag between the sound and the environment.

Helpful in improving my knowledge.

I am liking the way it is being taught and it is helping in improving my knowledge. Also a list of most common terms are much helpful to follow. This was just so amazing course giving a comprehensive review of every detail about someone interested to pursue his or her career with stock trading.

5 STARS!!!

Course breaks down the terminologies and theories in a way that's easy to understand. As someone who struggles with trading lingo, this audible has helped definitely improved my literacy and knowledge in this area.

Brutally honest pointers for day traders

A Clearing House refers to a financial intermediary that exists between sellers and buyers of financial instruments such as stocks, bonds, futures, options, and mutual funds. At the same time, it is also an agency which operates in tandem with a futures exchange. In this capacity, they handle clearing trades, settling trading accounts, collecting and maintaining monies for margin accounts, reporting trades, and regulating delivery of the relevant financial instruments. These clearing houses serve as third parties for all options and futures contracts. They are also simultaneously buyers for each seller who is a clearing member and sellers for every buyer who is a clearing member.

Futures markets are most closely connected to clearing houses. The reason for this is that their financial instruments prove to be exceedingly complex. They must therefore have a stable financial intermediary backing them up. Every futures exchange maintains its own proprietary clearing house. This forces every exchange member to clear its trades via the clearing house by no later than the end of every trading session. They will have to deposit a given amount of margin money with the clearing house based on the maintained margin requirements so that they can cover any deficit member balance.

It always helps to consider a real world clear example to illuminate a challenging concept such as this one. If Godfrey’s Futures, a member broker, alerts the clearing house of the commodity and futures exchange at trading day end that it net bought 30,000 bushels of May soybeans for its customer accounts, then it will subsequently be required to deposit the margin cover of six cents or each individual net bushel position. This would amount to $1,800 in total deposit to be on hand with the clearing house in question. Since every member will have to clear out all trades via the house and so has to keep enough funds to cover their debit balances, it is ultimately the clearing house that carries the responsibility to all member broker dealers to fulfill the contracts according to the appropriate terms.