Here is a list of terms and concepts that you will need to know to learn stock trade.
What is a stock?
A stock is the part ownership of a business. They can be bought and sold based on market prices. Many free stock market games on the internet reflect live market prices.
What is a limit order?
A limit order is when a trader tells their stock broker not to buy or sell until the stock's price reaches a certain amount. Limit buys sets a price ceiling and a limit sell sets the price floor.
What is a stop order?
A stop order, or stop loss order, is similar to a limit order. It is an order to buy or sell a stock once the price reaches a pre-determined rate.
What is a paper trading?
Paper trading is the practice of trading stocks in a simulated environment where real money is not involved. Any gains or losses made are not reflected with actual currency. Online trading in a stock market game is one example of this.
What are options?
An option, also called a stock option, is the priviledge, but not requirement, to buy or sell stock at a set price by a certain date. There are two varieties: call and put. To learn more, visit Option Strategy.
What is a put option?
Also called simply "puts," this is the option to sell the stock at a strike price. To learn more, visit Options Trading.
What is a call option?
Exactly the opposite of a put option, a call option is the right to buy a stock at the strike price. To learn more, visit How To Trade Options.
What is a strike price?
A strike price is the pre-determined price at which an option can be bought or sold.
What is a stock broker?
A stock broker is a professional stock trader who buys and sells stocks, bonds and other items through agencies or on behalf of investors. It is not necessary to have a stock broker to trade on the stock market!
What is an ask price?
An ask price is the price at which a holder is willing to sell their commodity at any given time. These commodities can be stocks, bonds or other securities.