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Quick, detailed visual explanations of the key trading concepts.
The bid-ask spread is the price difference between the bid price and the ask price for a security. Narrow bid-ask spreads are a sign of high liquidity and can make a big difference in your P/L when trading options contracts.
Bear Call Spread Profit Calculation
Learn how to calculate the maximum potential profit when trading a bear call credit spread.
Bear Call Spread Risk Calculation
Learn how to calculate the maximum potential risk when trading a bear call credit spread.
Bull Put Spread Break-Even Price
Learn how to calculate the break-even price when trading a bull put credit spread.
Option Contract Multiplier
Option contracts are standardized to control a certain number of shares. Options use contract multipliers and are priced on a per share basis.
Reverse Stock Split
Reverse stock splits decrease the number of shares outstanding for a company. There is no change in equity or market value when a company splits its stock.
Dead Cat Bounce
Curious about the term "dead cat bounce?" This video explains everything you need to know. (No cats were harmed in the making of this video).
Learn what a stock gap is, why they happen, and how you can identify them on a chart.
Fill the Gap
Gaps occur when a stock's overnight price action moves substantially higher or lower. Learn more about what it means to "fill the gap."
Stock splits increase the number of shares outstanding for a company. There is no change in equity or market value when a company splits its stock.
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Bear Call Spread
Bull Put Spread
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