A fuller guide to this term is on the way. In the meantime, the related terms below explain the ideas around it.
Related MoneyPedia terms
- Limit OrderAn instruction to buy or sell only at a specific price or better, giving you control over the price you get.
- Stop OrderAn order that turns into a market order once an investment hits a set trigger price, often used to limit losses.
- Bid-Ask SpreadThe gap between the highest price a buyer will pay and the lowest a seller will accept for an investment.
- Brokerage AccountAn account you open with an investment firm to buy and sell stocks, bonds, funds, and other investments.
- Day OrderA buy or sell instruction that expires at the end of the trading day if it hasn't filled.
- StockA share of ownership in a company that you can buy and sell, giving you a small stake in its profits and growth.
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Plain-English education — not personalized legal, tax, or investment advice.