P

Panic Selling

The action of selling off large quantities of a particular product or commodity due to sudden fears of a forthcoming decline in demand or drop in market value.

Price Earnings Ratio (P/E Ratio)

The price earnings ratio, commonly known as the P/E ratio or sometimes PER, is the ratio of a company’s share price relative to its earnings per share (EPS).

Price Elasticity of Demand

Price elasticity of demand is an economic measure of the change in the quantity demanded or purchased of a product in relation to its price change. Expressed mathematically, it is: Price Elasticity of...

Profit Factor

The profit factor is the ratio between gross profits and gross losses. For those who don’t know, gross losses and gross profits refer to the total amount that a strategy has lost and won respectivel...

Parabolic Indicator

The parabolic indicator refers to a technical analysis strategy that utilizes trailing stop and reverse method in order to determine entry and exit points.

Partial Fill

This is when you have a limit order that is too tight and you only fill part of your entire order. The remaining order needs to either be cancelled or you have to keep waiting to see if the price come...

Proprietary Firm Accounts

Proprietary trading firms originally were regulated trading firms. These firms will hire traders, require them to get licensed to trade (Series 6,7,63,65,66, etc), and allow them to trade with the fir...

Pump and Dump

Pump and dump is an investment scheme where untrue statements are made public about a stock with the purpose of artificially increasing the stock price.

Price Target

A price target is the projected price of a financial instrument as provided by an analyst and is used determining under and overvalued stocks.

Profit/Loss Ratio

A profit/loss ratio is a measure of the ability of a particular trading system to generate profit instead of loss and is based on a percentage basis.