Glossary
Absolute range breakout system An n number of days breakout system is to buy on breakup above the last n days trading range and to sell on breakdown below the last n days trading range.
Algorithm trading system A trading system with pre-set trading rules to mathematically compute, according to an algorithm (suitable to the prevailing market conditions), mechanically generated signals on when to enter and when to exit the market. The algorithm is derived after intensive backtesting and optimisation. Algorithm trading is employed by the professional model trading desks of large financial institutions.
Ask The price that a seller is willing to receive for a contract.
Average directional index (ADX) A leading indicator to evaluate the ...
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