Markets for experts

Day trading is when traders place trades on financial markets using technical indicators that try to predict where the price of an asset will head over the course of a day. They place orders depending on where they think the…

High-frequency trading (HFT) refers to a specialised form of trading that uses computer programs called bots to execute multiple trades in fractions of a second. The aim of HFT is to take advantage of very small price changes with high…

Spread is the difference in price between an ask and a bid.

An index is an aggregated security that tracks the performance of a collection of companies or assets. An example is the FTSE 100, which tracks the performance of the top 100 companies on the London Stock Exchange (LSE).

A bear market is the part of a market cycle when prices are trending downwards, generally due to fear that prices will continue to fall. This triggers further selloffs and becomes a self-fulfilling prophecy.

Hedging is a way to reduce the risk of holding an asset. This is done by holding assets that are expected to have price moves in the opposite direction.

A bull market is when prices are in a rising trend and are expected to continue.

It is the increase of an asset’s value over time. If you bought one Bitcoin at $1,000 in 2013 and its value increased over eight years to $42,000, the asset has appreciated by 4,100%. True story. The opposite of asset…

A positive feedback loop in investing occurs when one event reinforces the other.

An initial public offering (IPO) is the initial stage of a company going public and offering its shares for sale on a stock exchange.

Asks and bids refer to the prices offered for assets on an exchange or brokerage.

A benchmark is a way to measure how well an investment portfolio has performed in comparison to the wider economy.