Stock Market Trading Terms (F – L)
Stock Market Trading TermsTake advantage of this quick reference guide to the most common stock market trading terms for the individual investor. Traders have their own language and our listings of financial terms will have you speaking the lingo in no time!
Here you will find stock trading terms that we put into words to make it easier for new and also non-investors to understand. Individuals who are new to trading tend to feel a bit overwhelmed so our goal is to provide you with the information necessary to study the stock market by making it as easy as possible. We also do this in our Technical Analysis section and in our Japanese Candlesticks section of this website. In these sections you can learn about the different types of Japanese Candlestick patterns utilized by individual traders and also learn of the most profitable technical indicators available.
Below is a trader’s dictionary of common stock market trading terms to assist individual investors who may be new to trading. Before viewing the terms below, take a look at the listings of financial terms found in our Stock Market Glossary and the Stock Market Terminology postings.
We hope that you find this information useful in your stock market education.
Stock Market Trading Terms F-L
Fibonacci numbers
A sequence of numbers that are derived by adding the two previous numbers to obtain the next number. (The first number of the sequence is 0, the second number is 1, and each subsequent number is equal to the sum of the previous two numbers of the sequence itself.) The series of numbers produces ratios used by technical analysts to plot trading algorithms. Classic forms include: the Fibonacci fan, Fibonacci Arc, Fibonacci Retracement and the Fibonacci Time Extension. A popular indicator used in Technical Analysis.
Fair Value is used in options to depict the value by mathematical calculations.
Fundamental Analysis is the evaluation of a companies fiscal details to form an opinion as to potential price moves in the future.
Gap
A price void often caused by news after the stock market closes. When the market reopens, it jumps (or gaps) to a new high or low causing a hole (or gap) in the chart pattern.
Good Until Canceled is an order that remains effective until it is cancelled or filled.
Greeks is the mathematical criterion used to calculate stock option prices.
Hedge is to protect against potential losses.
High of Day simply stated, is the highest price a stock trades during the day.
In the Money
A call option is in-the-money when the underlying stock price is higher than the strike price of the call, and a put option is in-the-money when the stock price is below the strike price.
Inside session
Trading session where the high and low of a trading period stays within the high and low of the previous trading session.
Intra-day
Trading periods that begin and end within a one-day time frame.
Intrinsic Value
This stock market trading term is the difference between the current stock price and the strike price. This is the amount by which an option is in the money, and indicates the value of an option if it were to expire right now.
IPO: A company’s first sale of stock to the public
Limit Order is an order to buy or sell options at a certain, or limited price.
Long; if you go long in the market you are buying
Liquidity is how easily you may buy or sale an equity. The higher the volume, the more liquid. This is why you set filters on your stock scanning tool. It can become dangerous to be in a stock that is not liquid, making it difficult to find buyers.
Stock Market Glossary (A-B) Stock Market Terminology (C-E)
Stock Market Trading Terms (F-L) Stock Market Definitions (M-R)
Glossary of Stock Market Trading Terms (S-Z)
As mentioned above, many of these stock market trading terms are used in greater detail in our Japanese Candlesticks Category, our Technical Analysis Category, and in also as illustrations in our Daily Market View.
