Investment & trading encyclopedia

Understand investment products, market mechanics, indicators and research terminology. Each entry includes an explanation, example, cautions and related learning.

80 explained termsView all courses

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Market mechanicsBeginner

Limit Order

A limit order instructs a broker to buy at or below, or sell at or above, a specified price. It controls the worst price you will accept but does not guarantee that the order will be filled.

Market mechanicsBeginner

Liquidity

Liquidity is how easily an asset can be bought or sold quickly, in the desired size, without moving its price much. A liquid market has many active buyers and sellers, narrow spreads and deep order books.