Trade settlement timelines, meaning "trade date plus X days." T+2: Standard for most equities. T+1: Becoming the norm in many markets (e.g., U.S. in 2024). T+0: Same-day settlement (common in crypto and spot FX).
An order to automatically close a trade once it reaches a set profit target.
The study of price charts, patterns, and indicators to forecast future price movements. Popular Tools: RSI, MACD, Moving Averages, Bollinger Bands.
The smallest possible price movement of a security. Example: A tick for a futures contract might be 0.25 points.
The minimum price increment in which a security can move or be quoted. Regulated by: Exchange rules (e.g., NYSE, CME)
A condition on an order specifying how long it remains active. Types:
GTC (Good Till Cancelled)
IOC (Immediate or Cancel)
FOK (Fill or Kill)
DAY (Expires at close)
A dynamic stop-loss that adjusts with price movement, locking in profits while allowing room for trend continuation. Example: Set 10% below market price, and it rises with the price but never goes backward.