Archive List for trading terms

Average True Range Indicator (ATR) | Adjusting Position Size by Volatility

Position sizing is an important component of trading. When considering what size of position to take, you should be aware of how much each market tends to fluctuate. This video explains how you can attempt to normalise your notional risk by adjusting for volatility rates of different markets. It also looks at how to use the Average True Range indicator (ATR) with Trading 212’s web app. Test and practice your strategies in real market conditions with virtual money. Learn to trade and invest for free. – https://www.trading212.com/en/Practice-for-Free-GBP Download the free native mobile apps now: Trading 212 for iOS – https://itunes.apple.com/gb/app/trading-212/id566325832?mt=8 Trading 212 for Android – https://play.google.com/store/apps/details?id=com.avuscapital.trading212&hl=en-uk Subscribe | Select the […]

Units/Lots | Trading Terms

Trading units (aka lots, aka position size) is one of those trading terms that seem simple but can be quite confusing for someone who’s just come into the trading world. The reason behind this is that different types of trading require different terminology to describe them. Forex and stocks have different predefined sizes for trading and switching between the two can cause some ambiguity. Trading expert David Jones is on deck to break down the explanation of what lots and units are to their smallest parts and make it simple for everyone who’s struggled with them. At Trading 212 we provide an execution only service. This video should not be […]

Bid / Ask Spread | Trading Terms

0 The difference between the buy and sell price (also known as bid and ask) is one of those things that mystifies newbies. We’re not used to having two prices for the same thing when we go to a store or shop online. This video explains in detail what they mean and why it’s there in the first place. As there are many connected things stemming from the bid/ask price David covers them as well, to provide a more holistic description of the term. The exact terminology, its place on a chart, how to interpret it is discussed in a simple and easy to grasp way before continuing to a […]

Short Selling | Trading Terms

Selling with the goal of profiting, also known as shorting, is one of those things that many new traders are baffled by. How can I sell something that I don’t own? How can I win if something appears to be losing? This video answers those questions and more. From the definition of the term, to what it looks like in the Trading 212 platform, we look into this term in a simple way that will make it as simple as possible to understand. David goes through the theory and demonstrates it in the real market with a step by step guide on how to find situations when a short could […]