Ask Price - The lowest price a dealer or seller is willing to accept. Also called the offering price.

Bid Price - The highest price a dealer or buyer is willing to pay.

Call - An option contract giving the owner the right (but not the obligation) to buy shares of stock at a predetermined price (called a strike price) on or before the expiration date of the contract.

Channeling Stocks - Stocks that trade within a certain range creating a pattern between a high and low price points for long periods of time, often becoming predictable.

Charting - An analysis technique to track price trends to determine patterns and price movement.

Day Order - A market order to buy or sell that expires if not executed before the end of that trading day.

Discount Broker - A brokerage house that charges lower commission rates for executing orders.

Expiration Date - The last day that an option can be exercised; after this date, the option expires worthless.

Full Service Broker - A brokerage firm that works for higher commissions to cover the cost of investment research and financial advice given to the client.

Good ‘Til Canceled (GTC) Order - An order placed by an investor that instructs the broker that the order shall remain in effect until it is filled (either bought or sold at a predetermined price), or until it is canceled by the investor.

In The Money - A "Call" option is said to be "in the money" when the current market price is higher than the strike price. A "Put" option is said to be "in the money" when the current market price is below the strike price of the option contract.

Limit Orders - A market order to buy, or sell a specific security at a specified price or for a specified time.

Buy Limit Order - For example, a stock is trading at $3.00 a share. You place a Limit Order to Buy at $2.50 a share. If the trading price goes to $2.50 or lower, the order is filled and you buy. If the stock stays above $2.50 a share, the order is ignored.

Sell Limit Order - For example, a stock you already own is trading at $2.00 a share. You place a Limit Order to Sell at $2.50 a share. If the stock trading price goes to $2.50 or higher, the order fills and you sell. If the stock price stays below $2.50 a share, the order is ignored.

Market Maker - A dealer willing to accept the risk of holding securities to facilitate trading in a particular security or securities.

Market Orders - A market order buys or sells the security at the current market price.

Option - The right to purchase or sell a specified number of shares of a security (stock) at a specified price on or before a specified date.

Out Of The Money - A "Call" option is aid to be "out of the money" if the current market price is lower than the strike price. A "Put" option is said to be "out of the money" if the current market price is higher than the strike price.

Put - An option contract that gives the owner the right to force the sale of a certain number of shares of stock at a specified price, on or before a specified date.

Resistance Level - The upper level of a stocks trading range where there appears to be a limit on further price increases.

Stocks - The certificates representing ownership in a Corporation.

Stop Loss Order - A Stop Order placed to protect account value from a significant decline in the price of the stock.

Stop Limit Order - A type of Stop Order, which specifies the price at which the stock must trade.

Strike Price - The price at which an Option or Futures contract can be executed according to the terms of the contract.

Support Level - The lower level of a stocks trading range where there appears to be a limit on further price declines.

Ticker Symbol - A company’s abbreviation, using letters to designate a particular stock for trading transactions.

Trading Range - The range of difference between the support level and resistance level.