Finelo Blog
Learn investing and trading, one article at a time. Practical guides, beginner-friendly explainers, and learning tips from the Finelo team.
Limit Up Limit Down Rule: What It Is and How It Affects Trading
The Limit Up–Limit Down (LULD) rule prevents trades outside exchange-defined price bands and enforces short pauses or restrictions when a stock moves beyond those bands, reducing disorderly price moves.
Leverage in Trading: Learn the Concept & Risk Controls
Leverage in trading means controlling a position larger than the money you put in. It is written as a ratio: at 10:1 (also shown as 10x), every $1 of your own capital controls $10 of market exposure, so $1,000 controls a $10,000 position.
Level 2 vs. Level 3 Market Data: Definitions, Access, and Common Confusion
Level 2 generally refers to market-depth information showing multiple bid and offer levels. “Level 3” is not a universal label for a deeper retail data feed.
Level 2 Market Data Free: Guide
Short answer (direct): Level 2 market data—an order-book view showing multiple bid and ask price levels—can sometimes be accessed at no extra cost via broker platforms, demo/educational accounts, or bundled tools; however, full exchange feeds are often gated behind paid subscriptions or exchange fees.
IV Rank vs. IV Percentile: the Key Differences
Compare IV rank with IV percentile, understand their different lookback calculations, and learn why data choices and market context can change the signal.
Intrinsic Value Formula for Options: Calls, Puts, and Examples
Intrinsic value of an option is the portion of its price that reflects immediate exercise profit: for a call, max(0, underlying price − strike); for a put, max(0, strike − underlying price) — this is the amount an option is “in the money” and never negative CME Group.
Implied Volatility Term Structure: Learn the Concept, Uses & Risks
The implied volatility (IV) term structure plots implied volatility across option expirations. It shows how option prices differ by maturity and can help explain where event or longer-horizon uncertainty is concentrated.
ICT Trading Concepts: Learn the Concept & Risk Controls
ICT stands for Inner Circle Trader, the brand and alias of Michael J. Huddleston, an American trader and educator.
How to Confirm Chart Pattern Breakouts: Definition, Examples & Key Limits
A chart-pattern breakout occurs when price moves beyond a defined support, resistance, trendline, or neckline. The move is not automatically valid.
Harami Candlestick Pattern: Bullish, Bearish, and the Harami Cross Explained
A harami is a two-candle reversal pattern built on one simple picture: a large candle moving with the trend, then a small candle whose body sits entirely inside the body of the first.
Good Faith Violation: Current Rules, Examples & Risks
A good faith violation can occur when a customer buys a security in a cash account with unsettled sale proceeds and then sells the newly purchased security before the original sale settles.
Geometric Average Return Formula: Calculation, Importance, and Applications
The geometric average return (also called the compound average) is the per‑period growth rate that, when compounded, equals the actual cumulative change over a sequence of returns.
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