For Starters: Day Trading Terms You Should Know

If you are just starting out there are day trading terms you should know. This should help you along as you set out to (hopefully) make a quick profit while on the market.
Some of these are very basic, so if you are already aware of some of these you can skip them. However, for those just starting out reading these may be very helpful.

Basic Terminology

As you learn the ropes of the day trading world, you should familiarize yourself with the entire financial exchange process. You can start by viewing this list of terms:
Ask-This term refers to the current selling price of a security, stock, or other financial product.
Bid-This term refers to the current buying price of a financial product such as a stock, bond, security, currency, or other instrument.
Broker-A person who is employed in the field of helping buyers and sellers make a trade is employed in this field. This professional (or whole firm) is usually paid based on commission.
Change-Another word for this is range. It is the amount of security price fluctuation, which has risen or fallen in a given day.
Closing out-This is the end of the day, which is a time when all financial exchange has stopped until it is time to reconvene in the morning. This is the time in which a profit or loss is determined.
Leverage-If you want to increase the potential to earn a return you may need to rely on borrowed money. This often helps you work with a smaller investment in order to gain a larger return.
Liquidity-This is a result of high trading activity levels. A security can be traded without affecting the price in this level.
Open-The price that is being offered at the beginning of a session is usually referred to as this.
Pivot point-This is the numerical average of a stocks high, low, and closing prices is calculated, and is used to make further predictions.
Trade-The act of buying or selling financial products such as stocks, bonds, securities, or currency; otherwise, this activity is called an “exchange.”
Volatility-This is the range of prices of a stock that fluctuates within a given day. The greater the range from morning until night, the greater the profit or loss will be.
Volume-The shares that are held in a security session are usually held in certain numbers. These are groups of financial products (i.e. stocks) that are traded in a session.