Risk Management/Position Management

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Knowledge Check

1) What does price rally mean?

Price rises at a quicker pace

Size of a company’s dividend compared with the price of its stock

Price decreases at a slower pace

2) What is moving average?

Relative strength index to show you where to buy and sell

A technical indicator you can find in stock charts. Commonly used to figure out where to buy and where to sell

Commonly used to focus on MACD to see where it’s heading to

3) What does the word bid/ask spread mean?

Buy and sell price difference in between both. For example, bid is at 4.50 and ask is at 4.60= 10 cents spread

It shows you the price where it hits highest and lowest

You can see the numbers where it has the biggest shares of buying and selling

4) What does market order mean?

It means your orders will get filled at one year highest

It means it will get you filled at whatever price is available on the bid or ask

It means your order will get sold automatically

5) What does going short mean?

It means you are expect the price to rise

It means you are betting against the company expecting the price to drop

It means you’re expecting price is going to create nice momentum