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Terminology |
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Some Useful Trading Terms Explained.....
Emini An Emini is an electronic mini contract worth $1000USD. It is a highly leveraged financial product. Eminis are traded on the US stock indexes such as the S&P 500, Russell 2000, NASDQ and the Dow Jones. The Traders International Program currently trades the S&P500 and the Russell 2000.
Indexes Trading on an index means that you are trading on the Index of the aggregate shares for that market. Some examples are: S&P 500 - Top 500 US stocks Dow Jones - Top 30 US stocks SPI - Australian All Ordinaries Index RUSSELL 2000 - Small & Mid cap US stocks NASDQ - Technology Stocks
Live 24/5 Traders International is launching a new on-line Trading Room on September 1st, 2007. Which will allow Australian TI members to trade the Eminis all day and all night.
Margin Is the amount required to open a position. This amount is different for each futures market depending on each contract.
Margin Call Is the phrase used to represent a call for additional funds. This demand for more funds to restore an account to its initial margin requirement level. Generally, this occurs when the price action is adverse to the account holders positions.
Margin Requirement Is the amount of funds neccessary for a position or a portfolio's entire holdings.
Market Maker Is a party who is prepared to buy or sell on the close of a market.
Pivot Points Developed decades ago by floor traders. They are a simple method for projecting pivotal price areas where it was expected that if the price hits those areas then it would pause and bounce off these areas. Pivot Points are used as areas of Support or Resistance to bolster our trades.
Mean Pivot = Yesterday's (HIGH + LOW + CLOSE) 3
Positions (Long & Short) Long - You BUY at a certain index level and aim to sell at a higher level to make a profit. SHORT - You SELL at a certain index level and aim to buy back at a lower level to make a profit.
Risk The risk of trading futures is 50:50 but our training arms with the tools to reduce the risk.
Support & Resistance Areas where price will attract buyers or sellers that could make it difficult to penetrate price in that area.
Trading Room Traders International offers an on-line trading room where our members can see the professional traders charts and hear/see them call LIVE buy and sell signals from bell to bell on the US market. |
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