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Glossary


Counter-Trend Trading

Counter-Trend Trading is the method in technical analysis by which a trader takes a position contrary to the current market direction in anticipation of a change in that direction.

See Also:

Trend: Trend is the general direction, either upward or downward, in which prices have been moving.

Technical Analysis: Technical Analysis (in opposite to fundamental analysis) is an approach to forecasting commodity prices that examines patterns of price change, rates of change, and changes in volume of trading and open interest, without regard to underlying fundamental market factors. Technical analysis can work consistently only if the theory that price movements are a random walk is incorrect.

Trader: Trader is a merchant involved in cash commodities or a professional speculator who trades for his own account and who typically holds exchange trading privileges.


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Risk Statement:

Naked options trading is very risky - many people lose money trading them. It is recommended contacting your broker or investment professional to find out about trading risk and margin requirements before getting involved into trading uncovered options.

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