Terms Start With D

 

Important terms starting with D that can be useful for making money in stock market, Forex or any financial market it pays to know them.

Discount: The amount by which the price of an option or future falls below the theoretical value, representing the degree or pessimism of market participants.

Distribution: Process in which demand for a stock is overcome by an expanding supply, which over a period of time has an unfavorable effect on the price of a stock. It is generally a period of trend neutrality in price, but often has high volatility.

Divergence: One measure failing to extend its trend to a new high (or low) while another measure does. This leads to less confidence in continuing the trend. Often said of the Dow Jones Industrial Average versus the Dow Jones Transportation Average. Opposite of confirmation.

Downtick: A transaction that occurs at a lower price than the previous transaction.