L Flashcards
1
Q
Leverage
A
Is when you use leverage, you borrow shares in a stock From your broker with the goal of increasing your profit. If you borrow shares and sell them all at a higher price point, you return the shares and keep the difference.
*Risky
2
Q
Low
A
Is the opposite of a high. It represents a lower price point for a stock or index.
3
Q
Liquidity
A
How easy it is to trade shares of a stock. The key to PennyStocking is to quickly move in and out of the position – only trade stocks that are extremely liquid in relation to the capital you trade with.
4
Q
Limit Order
A
An order placed to trade a stock at a certain price specified by the client who places the order.
5
Q
Large Cap
A
Valued over $10 billion (no penny stocks)
