You need to have yourself accustomed to the following terms before you can continue further in the course:

1. Going long – When you “buy a stock”, you are going long, which means you own the stock.
2. Selling long – When you “sell a stock”, and are going short, which means you forfeit the ownership of the stock.
3. Selling short – When you sell a stock with the intention of purchasing it again in the future then you are selling short. This is essentially selling a stock which you borrow from the broker; you do not actually own this stock. (will be looked in to in detail in the further in the course)
4. Covering short – When you are buying a stock, which you sold short (selling short), you are covering short. This is because the stocks you borrowed from the broker for selling short unexpectedly had a high price hike and the broker wants you to get it.
5. Round lot – 100 is a convenient number to operate on, therefore share brokers buy and sell orders in multiples of 100 shares, this is known as the round lot; however, some shares with a high reasonable price are purchased in multiples of 10 shares.
6. Odd lot – Odd lot refers to orders which are being executed for numbers of shares, which are not in multiples of 100, this mostly occurs because there is a high commission charged for them.
7. Combined demand for a stock - The overall aggregate demand (buyers ready to purchase) for a specific stock, at a particular price and a particular point in time.
8. Combined supply of a stock - The overall aggregate supply (availability of shares for sale) for a specific stock, at a particular price and at a particular point in time.
9. Cash volume - The amount of money which is transacted for the stock trade over a given period of time, which can be per hour, per day, per week, etcetera. For instance, if there are 100 shares of Microsoft traded during one day for an average price of $4.00 per share, then the daily cash volume of Microsoft for that particular day is $400.
10. Opening price - The price at which the trading price for a stock begins is known as the opening price. The closing price of the stock will be the opening price for the stock the following day.
11. Closing price - The price of a stock at the end of the trading day is known as closing price
12. Order book - The order book is a database where all orders are recorded in a stock exchange.