Category: Glossary

  • German Bund spread betting

    German Bund spread betting The German Bund is a fixed-interest security issued by the German government to finance its debt. It is used as the benchmark of the European denominated debt. The difference between the German goverment Bund and another European debt, is known as the spread.   Many spread betting companies allow you to spread…

  • Bulls and Bears

    Bulls and Bears Bulls are when buyers are in control driving up the stock market Bears are when sellers are in control driving down the stock market   Bull Market and Bear Market Bull market describes a longer term trend of the stock market, when the Bulls are in control over a longer period of…

  • Retracement

    What is retracement? Retracement is when prices have moved in a direction either up or down, then they retrace the move.   Below is a spread betting example of a retracement. Prices retraced the original move then continued in the direction of the main trend down  

  • Sideways Trend

    What is a Sideways Trend ? A sideways trend is when there is an equal balance between buyers and sellers, thus the price moves up and down between two levels. There is no real strength for a trend to continue in either direction. During a sideways trend there will be strong resistance and support  levels.…

  • Consolidation

    What is Consolidation? This is  considered a period of indecision. When there is no clear direction. It might appear as a drift. Normally after a big move you will have a consolidation phase.   Consolidation: The yellow lines are in a consolidation phase. Trend: The blue lines are trend phase. Sideways trend:  the Pink lines…

  • Trend

    What is a trend? A trend is when prices have pushed in one direction either up or down. An Up trend is when the lows are getting higher and the highs are also higher A Down trend is when the lows are getting lower and the highs are also lower   Circles are getting lower…

  • stop and reversal

    Stop and Reversal :  stop and reversal  refers to a continuous spread trading strategy. You will be long  in a trade then you will reverse this trade by spread trading short, thus closing out your long trade trade. This type of trading is used in the Parabolic SAR stop and reverse strategy .