Trading Range
Trading range is a term used in financial markets to describe the range of prices that a security or asset has traded within over a given period of time. It is also known as the price range, or the range of prices. The trading range is determined by the highest and lowest prices that a security has traded at during a given period. It is used to measure the volatility of a security or asset, and to identify potential trading opportunities.
History of Trading Range
The concept of trading range has been around since the early days of financial markets. It was first used by traders to identify potential trading opportunities, and to measure the volatility of a security or asset. Over time, the concept has evolved and become more sophisticated, with traders now using a variety of tools and techniques to identify trading opportunities.
Trading range is also used by investors to assess the risk associated with a particular security or asset. By understanding the trading range of a security, investors can better assess the potential risks and rewards associated with investing in that security.
Table of Comparisons
| Security | Highest Price | Lowest Price | Trading Range |
|---|---|---|---|
| Apple Inc. | $400 | $200 | $200 |
| Microsoft Corp. | $200 | $100 | $100 |
| Google Inc. | $500 | $300 | $200 |
Summary
Trading range is an important concept in financial markets, as it helps traders and investors to identify potential trading opportunities and assess the risk associated with a particular security or asset. By understanding the trading range of a security, investors can better assess the potential risks and rewards associated with investing in that security. For more information about trading range, investors can visit websites such as Investopedia, The Balance, and Yahoo Finance.
See Also
- Volatility
- Price Action
- Support and Resistance
- Trends
- Moving Averages
- Technical Analysis
- Price Channels
- Price Patterns
- Indicators
- Chart Patterns
