The risk-reward ratio compares the potential profit of a trade to its potential loss, helping traders assess trade viability.
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What is brokerage fee?
A brokerage fee is the commission charged by brokers for executing buy or sell orders.
What is clearing house?
A clearing house is an intermediary between buyers and sellers that ensures the settlement of trades.
What is settlement cycle?
The settlement cycle is the time it takes to transfer securities and funds after a trade is executed.
What is circuit breaker in stock market?
A circuit breaker is a mechanism to temporarily halt trading if prices move beyond pre-set limits, to prevent panic selling.
What is insider trading?
Insider trading is buying or selling a security based on non-public, material information, which is illegal.
What is retirement planning?
Retirement planning is preparing financially to ensure sufficient income and lifestyle security after retiring from work.
What is dollar-cost averaging?
Dollar-cost averaging means investing a fixed amount regularly, regardless of market conditions, to reduce timing risk.
What is diversification strategy?
A diversification strategy reduces risk by spreading investments across asset classes, sectors, or geographies.
What is sector rotation?
Sector rotation is shifting investments between different sectors based on economic and market cycles.