Igor

Assets that are traded less commonly are more vulnerable to price slippage between the quote price and the latest market value. When Market Versus Quote values are elevated, this is an indication to traders that the asset is less liquid than its counterparts.

Market Overhang occurs when an asset is experiencing significant selling pressure but market participants are reluctant to sell based on the belief that this will cause greater price declines. Markets that are less liquid tend to experience Market Overhang for longer periods of time.

Market On Close orders are best-suited for traders with strategies that are clearly defined by an individual session. Specifically, these orders allow traders to capitalize on potentially drastic market moves that are expected on the following day.

Market Makers are able to buy or sell assets any time they choose, and the way to determine their profits is based on the Market Maker Spread. These spread prices have limitations, however, as legal regulations prevent price manipulation in trading markets.

Market If Touched orders are useful for traders implementing contrarian strategies. In these cases, traders can wait for prices to fall to a certain level (before buying) or to rise to a certain level (before selling). Market If Touched are commonly used with clearly defined support and resistance levels.

It is important for traders to have some understanding of the current Market Depth for any trading asset because this will have a large effect on the way that asset's price behaves in the future. Decreasing Market Depth suggests that an asset is more prone to price gaps, while increasing Market Depth suggests more stable and less volatile trading.

For example, Market Arbitrage could be seen if a trader bought a stock at a lower price on one exchange and then resold that same stock at a higher price on another exchange. In this case, the trader's profits would be decided by the difference between the opposing market values.

As trading technology continues to develop, fewer and fewer trades are placed using Manual Trading systems. These systems tend to be the approach used by longer term traders, as there is often a greater level of fundamental analysis required to enter into these types of positions.

A true Macro-Hedge is difficult to implement because it is rare that any one asset can perfectly offset an entire investment portfolio. In practice, this usually means that multiple positions will need to be placed in order to protect against external market shocks.

When a fund describes itself as being Long/Short Equity, it is an indication that the fund will buy or sell any asset it wants. These types of funds are unrestricted in that there will be cases where management chooses to bet against a stock rather than implementing a traditional "buy and hold" strategy.

Long Put options are taken when an investor has a bearish outlook for a given asset and expects the price to fall in the future. Long Puts are similar to selling short an asset, but with the added flexibility that comes with the structure of an option trade.

Under normal conditions, markets will show a difference the highest price a buyer will accept and the lowest price a seller will accept. In Locked Markets, these conditions change and for this reason some brokers are forced to halt trading until these conditions revert to normal.

For example, if a trader sells the EUR/USD at 1.30, and prices subsequently drop to 1.28, the trader has an unrealized profit. That trader can then Lock In 100 pips in profit by setting a stop loss at 1.29.

Liquidation Margin applies only to trading accounts that utilize capital leverage to maximize position sizes. It is important to monitor Liquidation Margin levels, as these will trigger position closings if losses bring a trading account below a broker's margin requirements.

Liquid Markets are the opposite of "thin markets," which are usually marked by price gaps and extreme market volatility. Technical strategies like range trading tend to work well in Liquid Market, as breakout activity is more rarely seen.

Limit-On-Open Orders are valid only at the open of a market exchange and cannot be implemented later during the trading day. These orders are best suited for traders expecting available prices to be best at markets open, before most of the daily trading activity is seen.

At times when markets are thought to increase in volume, the best available prices are likely to be seen near the closing time for that exchange (making a Market on Close order beneficial). But traders can limit potential unpredictability in prices by using a Limit on Close order as this allows for a more structured trading outcome.

It should be understood that while Leveraged ETFs do allow the potential for substantial gains, adverse market moves can create losses that are equally substantial. Because of this, most experienced traders suggest a conservative approach to these types of investments.

The Level 3 offering allows traders to execute trading orders in the fastest possible way. Also referred to as Level III, the service is available for use by NASD member companies.

The main benefit of Level 2 quote information is that traders can watch the details of major market transactions in real time. Level 2 is commonly referred to as Level II.

The quotes that are displayed on Level 1 will provide enough information to establish invest and hold positions, as common price data is made available. But the amount of information displayed will not be sufficient for active investors, as market-depth is not offered.

Reporting levels change depending on the commodity that is being traded. These reporting levels are used as surveillance activities, and serve to stabilize speculation levels for trading in these markets.

The Keltner Channel is used by technical chart traders to determine the strength of weakness of a market price trend. Buy signals are generated when prices fall to the lower band while sell signals are seen when prices rise to touch the upper band.

The Kakaku Yusen pricing system is designed to decide which trade to execute when multiple orders are entered at the same time. This "tie-breaking" system uses opposing rules when compared to trading exchanges in North America.

The ISEE Sentiment Indicator gives numeric levels above or below 100. When the measurement shows levels above 100, it shows a larger number of open CALL options in the market. Numbers below 100 signify a larger number of active PUTS.