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交易術語

術語交易指交易者運用預定義的術語體系、概念框架及行業指標進行決策的策略類型,涵蓋專業術語、金融指標與分析工具,助您高效駕馭市場。

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Buy dips

A strategy, more often a tendency: when an asset you like falls in price, you buy more rather than less. The premise is that the long-term trend is up, the recent fall is noise, and the lower price is an opportunity.

Buy-the-dip works beautifully in a sustained bull market. It produced excellent results for US equity investors from 2009 through 2021, for crypto holders during multiple cycles, for tech-stock holders in the late 1990s; until it didn’t. The problem with the strategy is that it has no built-in stop. Every dip looks the same on the way down. Distinguishing a 10% pullback in an uptrend from the early innings of a 50% drawdown is the entire game, and most retail buyers are bad at it.

The professional version of buy-the-dip uses some combination of trend filters, technical levels, position-sizing rules, and explicit stops. The retail version often doesn’t, which is how dip-buyers turn into bag holders.

Example: S&P 500 dip-buyers had a phenomenal 2020. The COVID crash bottomed in March and the index made new highs by August. The same instinct applied during 2008 produced large drawdowns through November before the eventual March 2009 low. Same strategy. Different regime.

Buy limit order

An order to buy a security at a specified price or lower.

Buy stop order

An order to buy a security at a specified price or higher.

Buy-and-hold

A passive investment strategy where an investor holds a position in hopes to generate a long-term return.

Buybacks

When a corporation repurchases its shares to balance supply and demand, potentially raising stock prices.

Cable

Trader slang for the GBP/USD currency pair. The name is derived from the transatlantic telegraph cable laid in the 1860s, which served as the original infrastructure for transmitting exchange-rate quotes between New York and London. The term has been used and remains the universal shorthand among FX professionals today.

Cable ranks as the third-most-traded volume pair in the world, after EUR/USD and USD/JPY. It is sensitive to UK economic data, Bank of England actions, and anything that touches on the political relationship between Britain and the EU; events that can move the pair by several hundred pips in a single afternoon.

The term’ cable’ amongst traders is almost always used to mean the spot rate, not the futures rate. When one says ‘I am long cable at 1.2650,’ it means they bought sterling against the dollar at 1.2650 and are seeking to buy it at a higher rate.

Example: When the UK voted to leave the EU in June 2016, the cable crashed by 1.4800 to below 1.3200 in a single, overnight session; a move of more than 1,500 pips. Missers of the event risk and were short sterling due to unconnected causes made a career that night. Those on the wrong side didn’t forget it either.

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