Payment for Order Flow (PFOF)
How free brokers get paid by selling your order flow to market makers.
Bid-Ask Spread
The gap between the highest bid and lowest ask where hidden cost can appear.
Market Maker
A liquidity provider that stands ready to buy and sell continuously.
VIX
A volatility index often called the market fear gauge. Higher VIX usually means bigger expected swings.
Earnings
Quarterly company results that show revenue, profit, and guidance. These releases can move stocks quickly.
Guidance
Management's outlook for future performance. Markets often react more to guidance than to past results.
Volatility
How much prices move up and down over time. Higher volatility means wider swings and higher risk.
Liquidity
How easily an asset can be bought or sold without strongly impacting its price.
Market Cap
Company size measured by stock price times shares outstanding.
P/E Ratio
Price-to-earnings ratio. It compares stock price to earnings per share.
Support
A price zone where buyers often step in and slow a decline.
Resistance
A price zone where sellers often appear and slow an advance.
Fed
The US Federal Reserve. Its rate decisions strongly affect stocks, bonds, and currencies.
Inflation
The pace at which prices rise in the economy. Persistent inflation can influence rates and valuations.
Yield
Return from a bond or income-generating asset, often shown as a percentage.
Payment for Order Flow (PFOF)
How free brokers get paid by routing orders to market makers who execute them.
Bid-Ask Spread
The difference between the best buyer price and best seller price, often a hidden trading cost.
Market Maker
A firm that continuously quotes buy/sell prices and profits from spread while providing liquidity.