A short position is the sale of an instrument prior to a projected drop in its market value.
The spread is the difference between the bid and the ask prices.
A stock is a piece of a company, and a stockholder is one who owns a percentage of a company’s profits.
A stop loss, also known as a stop order allows investors to automatically close a position that is moving against them, once it hits a pre-established price below the opening value. Stop losses are used to prevent additional losses, if the price keeps moving in an unfavourable direction.
The support level is the floor for the fluctuations in an instrument’s price.