Video from the FREE course Stock Market Basics: [ Ссылка ]
Welcome to this video on financial market terminologies.
After completing this video, you will be able to explain various market terminologies such as long, short, volume, and so on.
Let’s start with a long position. Long position or simply a long refers to the direction of your trade. For example, if you are buying a stock of a company, it is said that you are going long on that company. Or if you are already holding stocks of the company, it is said that you are long on that company. In other words, buying is also called going long, in financial markets.
Next, you can also have a short position. Similar to a long position, a short position, or simply a short also refers to the direction of your trade. For example, if you are selling a stock without owning it, it is said that you are going short on the stock. Or you are short-selling the stock. If you have already sold the stock, without owning it, we would say that you have shorted the stock.
Once you have gone long or short on a stock, it is said that you have an open position. The trade you make to close this open position is called squaring off. In other words, square off refers to exiting an existing position, be it buy or sell. If you are long on a stock, squaring off a position means, you sell the existing bought stock and nullify your position. If you are short on a stock, squaring off would require you to buy the stock in order to neutralize your position. Opening a position in the market and squaring it off are known as transactions.
Volume refers to the total number of transactions, buy and sell put together, for a particular time period. For example, if we say the volume of XYZ stock is 1.5 million for a given day, it means 1.5 million shares were traded that day.
Next, we have OHLC data. An abbreviation to Open, High, Low, and Close (OHLC) refers to the dataset of stock prices where we have all four prices for each time period. For example, if you have a daily price dataset of a particular stock from 2013 to 2018, each data point (each day) would have four prices referring to Open price, High price, Low price and Close price. Often times, this data can also have volume as a part of it. In such a case, it can also be referred to as OHLCV data.
Now, let’s understand what the trend in a stock market means. Trends refers to the particular direction in the prices of a security. If the prices are moving in an upward direction over a period of time, it can be said that the security is in an uptrend. If the prices are moving in a downward direction, the security is said to be in a downtrend.
Other similar terms are bullish and bull market. If you are expecting the prices of stocks to go up, it is said that you are bullish on those stocks. From a broader perspective, if the stock market is going up during a particular time period, it is referred to as a bull market. On the same lines, we have the terms, bearish and a bear market. In contrast to bullish, If you are expecting the prices of stocks to go down, it is said that you are bearish on these stocks. From a broader perspective, if the stock market is going down during a particular time period, it is said to be a bear market.
That is all for this video. In this video, you learned various terminologies such as Long, Short, Square off, Volume, OHLC, Trend, Bull Market, and Bear Market.
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