Basic Terms

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"Bullish" and "bearish" are terms used in financial markets to describe the expected direction of price movements.

Bullish: A market that is "bullish" is one in which prices are expected to rise. This is usually because market participants have a positive outlook on the economy or a particular asset, and are buying that asset with the expectation that its price will increase.

Bearish: A market that is "bearish" is one in which prices are expected to fall. This is usually because market participants have a negative outlook on the economy or a particular asset, and are selling that asset with the expectation that its price will decrease.

These terms are often used in reference to stock market trends, but can also be applied to other financial markets, such as foreign exchange (forex) or commodities markets. It's important to keep in mind that market sentiment can change rapidly, and what may be considered bullish or bearish one day may be the opposite the next.

Here are some additional basic financial market terms:

Bid: The bid is the highest price a buyer is willing to pay for an asset.

Ask: The ask is the lowest price a seller is willing to accept for an asset.

Spread: The spread is the difference between the bid and ask price for an asset.

Volume: Volume refers to the number of shares or contracts of a particular asset that have been traded in a given time period.

Long: "Going long" refers to buying an asset with the expectation that its price will increase, and then selling it at a higher price.

Short: "Going short" refers to selling an asset that is not owned, with the expectation that its price will decrease, and then buying it back at a lower price to make a profit.

Leverage: Leverage refers to the use of borrowed capital to increase the potential return of an investment. For example, a trader may use leverage to trade a larger position in a stock or currency than they would be able to afford with their own capital.

Margin: Margin refers to the amount of capital required to be deposited in order to trade on leverage. When trading on margin, traders can increase their potential returns, but also increase their potential losses.

Pips: "Pips" is a term used in the forex market to refer to the smallest increment of price movement for a currency pair.

Swing Trading: Swing trading refers to a style of trading that involves holding positions for several days to take advantage of short-term price movements.

Day Trading: Day trading refers to a style of trading that involves holding positions for only one day and then closing out those positions before the market closes.

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