Reblog: Buy To Cover Definition: Day Trading Terminology


Buy to cover is an order type made against a stock with the purpose of closing an existing short position. Traders are required to place the buy order with a broker so as to fulfill the requirements of a margin call or to close a position for a profit.

Short selling is the process of borrowing shares from your broker to sell in the open market with hopes of buying them back at a cheaper price. By initiating a buy-to-cover order, the trader is able to cover the short sale allowing the shares to be returned to the rightful lender.

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Reblog: Trading Terminology By Warrior Trading


Bar Chart Definition: Day Trading Terminology

A bar chart is a graph characterized by a vertical bar and it’s used by technical analysts to learn more about trends. In trading, a single bar is used to represent a single day of trading. As one of the most popular chart type aside from candlesticks, it represents price activity within a given period of time.

As a result, traders and investors use this chart type to spot trends and patterns. What you need to know is that a bar chart is similar to the candlestick. The only difference is that the body of a bar chart is not filled like that of a candlestick.

As the western version of the Japanese candlestick, they help investors and traders to observe the contraction and expansion of different price ranges.

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