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Limit order

A limit order is a trade order that sets the maximum price you offer to buy the share at or the minimum price you offer to sell the share at.

Liquidity

In the stock market liquidity links directly to volume and refers to the speed of which you can buy or sell a share. Low volume means poor liquidity and can cause problems when you want to get rid of a stock when the price is dropping and there is nobody on the other end to acquire it.

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MACD

The MACD stands for moving averages convergence divergence and is one of the most popular indicators. It measures the change in two moving averages, one fast and one slow.

Market capitalisation

Market capitalisation measures the value of a company in terms of issued share capital. The formula for working out a companies market capitalisation is (share price x no of shares in issue).

Market order

A market order is a trade orders that tells the exchange that you want to acquire/release a stock whatever at the current price available. It is often used when a trader is desperate to acquire/release a share.

Moving averages

Is the most common technical analysis indicator and helps the user spot the start and end of trends. Often used by swing and position traders to know when to exit a trade.

 

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