Fundamental analysis is a method of determining a stock's real or "fair market" value. Fundamental analysts search for stocks currently trading at prices higher or lower than their real value. If the fair market value is higher than the market price, the stock is deemed undervalued, and a buy recommendation is given.
Embedded Files
Technical analysis is a method used by traders to forecast future price movements of stocks by analysing past trading activity. Chart patterns and statistical numbers are used extensively by technical analysts.
Derivative is a product whose value is derived from the value of it’s under lying assets. This underlying entity can be an Equity trading, Commodity trading, Currency trading and Interest rate. It can be used for hedging, speculation and arbitrage opportunities.
Options trading can seem more complicated than it is. If you're looking for a simple options trading definition, it goes something like this. Options trading is the trading of instruments that give you the right to buy or sell a specific security on a specific date at a specific price. An option is a contract that's linked to an underlying asset, e.g., a stock or another security.
A chart pattern is a shape within a price chart that helps to suggest what prices might do next, based on what they have done in the past. Chart patterns are the basis of technical analysis and require a trader to know exactly what they are looking at, as well as what they are looking for.
Candlestick charts are a technical tool that packs data for multiple time frames into single price bars. This makes them more useful than traditional open, high, low, close (OHLC) bars or simple lines that connect the dots of closing prices. Candlesticks build patterns that may predict price direction once completed.
Page updated
Google Sites
Report abuse