Glossary - P

Trading terms that begin with the letter P

Panic Buying
_{What Does Panic Buying Mean?}

High volume buying brought about by sharp price increases.

Panic Selling
_{What Does Panic Selling Mean?}

Wide-scale selling of an investment, causing a sharp decline in price. In most instances of panic selling, investors just want to get out of the investment, with little regard for the price at which they sell.

Pip
_{What Does Pip Mean?}

The smallest price change that a given exchange rate can make. Since most major currency pairs are priced to four decimal places, the smallest change is that of the last decimal point - for most pairs this is the equivalent of 1/100 of one percent, or one basis point.

Position Trader
_{What Does Position Trader Mean?}

A type of stock trader who holds a position for the long term (from months to years). Long-term traders are not concerned with short-term fluctuations because they believe that their long-term investment horizons will smooth these out.