Welcome to our comprehensive guide to key terms, that everyone should know trader on the New York Stock Exchange (NYSE). NYSE – the largest stock exchange in the world, and understanding the terminology used in it is key to successful trading. In this article, we will provide clear definitions and explanations of the main terms, used by traders on the NYSE. Regardless of, whether you are a beginner trader or an experienced professional, our guide will help you navigate the complex world of NYSE trading with confidence.
NYSE
NYSE, also known as the New York Stock Exchange, is the largest stock exchange in the world by capitalization. It is located on Wall Street in New York and has a long history, which started in 1792 year. NYSE provides a platform for buying and selling stocks, bonds and other securities.
Stock Exchange
Stock Exchange – this is the market, where buyers and sellers converge to trade stocks and other securities. It provides a regulated and organized trading environment. The NYSE is one such stock exchange., where investors and traders can buy and sell shares of public companies.
Trade
Trade – is the buying and selling of financial instruments, such as shares, bonds, options and futures. Traders looking to make a profit, based on price changes and market trends. NYSE makes trading easier, providing a platform, where buyers and sellers can execute their orders.
Ticker symbol
Ticker symbol – is a unique combination of letters and/or numbers, which identifies a particular stock on the NYSE. It is used to identify and track the performance of a particular company's stock.. Traders use ticker symbols to place orders and track stock prices.
Market order
Market order – this is the instruction, given by the trader, to buy or sell a security at the current market price. When placing a market order, the trader is ready to accept the current price for immediate execution of the trade. Market orders guarantee fast execution, but do not guarantee a specific price.
Limit order
Limit order – this is the instruction, given by the trader, to buy or sell a security at a specified price or better. Unlike market orders, Limit orders allow traders to control the price, at which they are willing to buy or sell. The order will be executed only if the market reaches the specified price or better.
Purchase (we)
Purchase (we) – This is the highest price, at which the buyer is ready to purchase a security on the NYSE. This is the price, at which traders can sell their shares. Purchase (we) It is usually displayed on the left side of a stock quote and reflects the demand for a security at a particular point in time.
Sale (ask)
Sale (ask) – This is the lowest price, for which the seller is willing to sell the security on the NYSE. This is the price, at which traders can buy shares. Sale (ask) usually displayed on the right side of a stock quote and reflects an offer to sell a security at a particular point in time.
Spread
Spread – is the difference between the purchase (we) and corrupt (ask) prices of a certain security on the NYSE. It reflects the difference between prices, at which traders are willing to buy and sell stocks. The spread can be narrow or wide depending on the liquidity and demand for the security.
Volume
Volume – this is the number of shares, that were bought or sold on the NYSE in a certain period of time. The volume reflects the activity of the trade and can be used to analyze the interest of traders in the security. A high volume is usually indicative of increased activity and interest from traders.
Opening
Opening – This is the first price, on which a certain security was traded at the beginning of the trading day on the NYSE. The opening reflects the initial price, at which traders start trading after the market opens.
closure
closure – This is the last price, on which a certain security was traded at the end of the trading day on the NYSE. The closing reflects the final price, according to which traders complete trading before the market closes.
Maximum (high)
Maximum (high) – This is the highest price, on which a certain security was traded for a certain period of time. The maximum reflects the peak price, which the security reached during the selected period.
Minimum (low)
Minimum (low) – This is the lowest price, on which a certain security was traded for a certain period of time. The minimum reflects the minimum price, which the security reached during the selected period.
Dividend
Dividend – This is a payout, which the company makes to its shareholders out of its profits. Dividends can be paid in cash, shares or other securities. Dividends are often a way for companies to reward their shareholders for contributing to the company's success.
Briefcase
Briefcase – This is a set of securities, possessed by a trader or investor. The portfolio may consist of shares of various companies, bonds, funds and other investment instruments. Portfolio management is an important part of a trader's or investor's strategy.
Margin
Margin – This is the share of the trader's or investor's own funds, which must be deposited to trade on margin (borrowed funds). Margin allows traders to increase their potential profits, but also carries the risk of increasing losses. Traders can use margin to increase their purchasing power and execute larger trades.
Selling short (short position)
Selling short, Also known as a short position, is a strategy, in which a trader sells a security, which he does not own at the moment, with the hope of a fall in its price. A short position allows a trader to profit from a decrease in the price of a security. This strategy involves buying a security in the future to close a position.
Volatility
Volatility – it is a measure of the volatility of securities prices on the NYSE. High volatility indicates large price fluctuations, how up, so and down, while low volatility indicates more stable prices. Volatility is an important factor for traders, as it can create opportunities for profitable trading.
Promotions “noble family” (blue-chip stocks)
Promotions “noble family” (blue-chip stocks) – These are shares of large and financially stable companies, which have a good reputation and a long history of success. Promotions “noble family” are considered more reliable and less at risk compared to shares of lesser-known companies. They usually generate a stable income and are considered one of the most attractive investments in the market.
Promotions
Promotions – These are ownership shares in the company, which are traded on the stock exchange. The purchase of shares gives the trader the right to share the profits and participate in the management of the company. The price of shares depends on supply and demand in the market.
Bonds
Bonds – These are financial instruments, which constitute a loan, issued by a company or government. The buyer of the bond becomes a creditor and receives interest payments (usually, in the form of interest payments) for the loan provided. Bonds can be traded on the stock exchange.
Options
Options – These are financial contracts, which give the trader the right, but not a duty, buy or sell an asset (for example, stock) at a certain price at some point in the future. Options can be used to protect against risks, speculation or the creation of complex trading strategies.
Futures
Futures – These are standardized contracts for the purchase or sale of an asset (for example, Raw materials, currency or financial instruments) at a certain price and at a certain point in the future. Futures allow traders to speculate on changes in asset prices and protect their positions from risks.
Indexes
Indexes – These are composite indicators, which represent the average value of a group of shares or other financial instruments. They are used to measure and track the performance of the market or individual sectors of the economy. Some notable indices include the Dow Jones Industrial Average, and the S&P 500.
ETF
ETF (Exchange-Traded Fund) – This is an investment fund, which is traded on the stock exchange, Similar to stocks. An ETF is a portfolio of various assets, such as shares, Bonds or commodities. Investors can purchase ETFs to diversify their investments and track the performance of the market sector.
Market maker
Market maker – This is a financial company or trader, which provides liquidity in the market through active purchases and sales of stocks and other securities. Market makers are ready to buy and sell assets at a price, close to the current market price, Thus ensuring smooth and efficient trading.
It's a deal
It's a deal – It is an agreement between a buyer and a seller to buy or sell a security under certain conditions. The trade can be executed at the market price or at the price, specified in the limit order. Trades are usually executed on an exchange or through an electronic trading platform.
Liquidity
Liquidity – It is the ability of assets to be quickly sold or bought without significantly affecting their price. The higher the liquidity of the security, the easier it is to buy or sell it on the market without significantly affecting its price. Liquidity is an important factor for traders, as it allows them to easily enter and exit positions.
Derivatives
Derivatives – These are financial contracts, whose value depends on the underlying asset (for example, stock, indices, currencies). Derivatives include options, futures, Swaps and other instruments. They can be used to protect against risks, speculation or portfolio management.
Hedging
Hedging – This is a risk management strategy, which involves the use of opposing positions or financial instruments to mitigate potential losses. Hedging allows traders or investors to protect their positions from adverse price changes or market conditions.
Inside information
Inside information – This is confidential information about the company, its financial condition, transactions or other information, which is available only within the company or to a limited number of persons. Using insider information to make trading decisions is illegal and punishable.
Margin call
Margin call – This is the broker's requirement to replenish funds to the trader's account, When the margin level (the relationship between own funds and borrowed funds) becomes insufficient to maintain open positions. A margin call encourages a trader to fund their account or close some or all of their open positions.
Arbitration
Arbitration – This is a trading strategy, in which traders try to make a profit, benefiting from the difference in prices of the same asset in different markets or in different time frames. Arbitrage allows traders to avoid risk and make profits with little to no risk.
Fundamental analysis
Fundamental analysis – This is a method of analyzing securities, based on the assessment of financial information, Political events, macroeconomic indicators and other factors, which can affect the price of a stock or the market as a whole. Fundamental analysis allows traders to determine the potential value of a stock and decide whether to buy or sell.
Technical analysis
Technical analysis – This is a method of analyzing securities, based on the study of historical prices and trade volumes. Technical analysts and traders use charts and indicators to identify trends, support and resistance levels, as well as other signals, which can help them make a trading decision.
Daily volume
Daily volume – This is the number of shares or other securities, that were bought or sold on the NYSE in a single trading day. The daily volume reflects the activity of the market and can be used to analyze the interest of traders in a particular security.
Asset value
Asset value – This is the price, at which the asset can be bought or sold on the market. The value of assets can be determined by supply and demand in the market and can change during the trading day.
Stop loss
Stop loss – this is the instruction, given by the trader, To automatically sell an asset, when its price reaches a certain level, set by the trader. Stop-loss is used to limit losses and protect investments from large price declines.
Long
Long – This is the position, in which a trader buys an asset with the hope of increasing its price and profiting from this growth. A long position can be held for a certain period of time, While the trader expects the price of the asset to rise.
Short
Short – This is the position, in which the trader sells the asset, which he does not own at the moment, with the hope of lowering its price and profiting from this fall. A short position allows a trader to make money on a fall in the price of an asset and then close the position, by buying an asset at a lower price.
Stock Indices
Stock Indices – It is a compilation of stocks or other securities, which represent a certain part of the market or a certain sector of the economy. Stock indices are used to track and measure the performance of the market as a whole or individual sectors.
deposit receipt
deposit receipt – It is a financial instrument, which is a document, confirming the right of ownership and ownership of shares of a foreign company. The depositary receipt is issued to investors, wishing to own shares of a foreign company, who are not residents of this country.
Daily report
Daily report – This is a document or summary, which provides information about trading on the NYSE for a specific trading day. The daily report contains information about stock prices, trading volumes, transactions and other statistics, which can be useful for market analysis.
opening order
opening order – this is a trader's instruction to the broker to place an order to buy or sell shares at the beginning of the trading day on the NYSE. An open order allows traders to participate in initial trading and gain first exposure to stocks at the start of the trading day.
Closing order
Closing order – this is a trader's instruction to a broker to place an order to buy or sell shares at the end of the trading day on the NYSE. A close order allows traders to close their positions and lock in profit or loss before the market closes.
Gapping
Gapping – This is the gap in the price of an asset between the close of the previous trading day and the opening of the next trading day. Gapping can occur due to news, events or other factors, that affect the supply and demand of an asset. Gapping can present opportunities for traders or indicate market volatility.
Execution price
Execution price – This is the price, on which the transaction is made when trading options or futures. The strike price can be predetermined when buying an option or specified by the trader in a limit order. The profitability or unprofitability of the transaction depends on the selected execution price.
Listing
Listing – It is the process of registering shares or other securities on an exchange for trading. Companies, who want to go public and offer their shares for trading, must go through the listing procedure on the exchange and meet certain requirements of the exchange.
Market Drivers
Market Drivers – These are factors or events, which have an impact on the prices of stocks and other financial instruments in the market. Market drivers may include economic data, Political developments, Company news, changes in exchange rates and other factors, that affect supply and demand in the market.
