Market maker quotes both sides of security market with bids and offers. Provides liquidity and depth to financial markets. Can trade for own accounts (principal trades)
Cross trade involves matching buy and sell orders without exchange recording. Most major exchanges don't permit cross trades. Legitimate cross trades occur when brokers match orders across client accounts
Fibonacci levels are derived from the golden ratio and measure mathematical proportionality. Common levels are 23.6%, 38.2%, 50%, 61.8%, and 78.6%. Fibonacci analysis helps identify support and resistance points in markets
Fibonacci was an Italian mathematician born in 1170. He studied mathematics in Bugia and learned about Hindu-Arabic numeral system. Fibonacci sequence starts with 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, 377, 610
MACD system shows price movements using two moving average lines. Best buy signals occur when prices are well below zero line. MACD histogram provides earlier trend reversal signals. Weekly signals are more important than daily ones
Primary market issues new securities for companies and governments. Secondary market trades existing securities between investors. Secondary market includes organized exchanges and over-the-counter trading