Glossary

ask see bid.

at-market or at-the-market An order to buy or sell an option or a share at the prevailing market price.

at-the-money When the exercise price of the option is close, or equal, to the current market price.

average down To buy more of a security that is not cooperating with your initial view; for example, buying more of a downtrending share. You are trading against the trend. Only ever buy more of uptrending shares.

average true range (ATR) The average of the true ranges over the past x periods (where x is specified by the user). See also true range.

average up To buy more of a share that is cooperating with your initial view.

back-test A method of testing an indicator’s performance by applying it to historical data.

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