Though a predicted-price range is a reliable tool, when or where prices will spike and fall isn’t as simple to see. Generally, option traders look to buy options when implied volatility is low since premiums are lower, in hopes of seeing the underlying stock move in a favorable direction along with an increase in volatility which will make premiums increase. In mature options markets, volatility surfaces can be very insightful into the market’s expectations of potential price behavi […]

It is commonly used to refer to the market capitalisation of a company, which is calculated by multiplying the number of shares in circulation by the current market price. This method is appropriate for businesses that have invested heavily and are forecasting steady cash flow over many years. Once investors realise a stock is undervalued, they’ll enter the market and the share price will rally.

Most companies issue ‘Ordinary’ shares of equal value, which provide members with […]

However, placing pending orders in the spread betting trading industry is going to increase your risk exposure to a great extent. Try to learn the price action trading strategy since it is one of the easiest ways to find profitable trades in favour of the long-term trend. A Fibonacci fan is a charting technique using trendlines keyed to Fibonacci retracement levels to identify key levels of support and resistance.

If you do spot these levels, the chances of the price bouncing off them are high […]

When selecting trading indicators, also consider different types of charting tools, such as volume, momentum, volatility and trend indicators. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63.1% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. The MACD is no doubt one of the most popular and […]

The Bollinger bands %B indicator quantifies the distance between price and the top and bottom bands, which can help technical analysts determine trends. Some traders also generate trading signals based on whether %B indicator is above 1 or below 0 and could entail either trend following or price reversal. It is nonetheless not recommended to use the %B indicator in isolation. As a general rule of thumb, the shorter the period and the higher the standard deviation setting, the more likely the cu […]

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Investors can thus distinguish small-cap stocks from mid-cap and large-cap stocks. […]