A bar chart is a type of chart that is used frequently by technical analysts and traders. Price data is represented on a vertical bar. The top of the bar is the highest price and the bottom of the bar the lowest. A dash on the left-hand side of the bar denotes the opening price, while conversely a dash on the right-hand side the closing price.

Unit of measure that describes the percentage change in the value or rate of a financial instrument. One basis point = 0.01%, or 0.0001 in decimal form. Performance benchmarks used in the Transaction Cost Analysis are presented in basis points.

A period in which the prices of securities or commodities fall by 20% or more. Typically a bear market causes widespread pessimism among investors, which in turn can cause the negative sentiment to continue.

A standards against which the performance of your portfolio can be measured. Commonly used benchmarks include such indices as the S&P 500 and the Dow Jones Industrial Average.

A legal obligation for brokers to ensure clients get the best possible result (price, cost, speed) when placing an order.

The difference between the highest price a buyer is willing to pay (bid) and the lowest price a seller will accept (ask). Narrow spreads often indicate high liquidity.

Stocks of large, well-established and financially sound companies that have a history of good performance, solid earnings. Blue chip stocks are typically large cap stocks of companies that have long records of reliable growth and are able to pay dividends in both good and bad times. The term “blue chip” is derived from the game of poker, where blue chips have the highest value.

A debt instrument issued for a defined period of time at a fixed interest rate with the purpose of raising capital by borrowing. A bond is a promise to repay the principal along with interest on a specified date. Types of bonds include corporate bonds, municipal bonds, and US Treasury bonds, notes and bills, which are collectively referred to as simply “Treasuries.” Bonds are generally referred to as fixed income securities and are one of the three main asset classes, along with stocks and cash equivalents.

The value of a company’s assets minus its liabilities, per its balance sheet.

A price movement outside a defined support or resistance level with increased volume.

A bull market is one in which prices have been rising for a prolonged period of time.

An order to purchase a security at or below a specified price.

An order to buy a security once its price reaches a specified stop level.

Buying power in trading refers to the amount of capital you have available to make new trades. It includes your cash balance plus any margin or leverage your broker extends to you.