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Finance GlossaryRealized Gain
Realized Gain
Definition of Realized Gain
Realized Gain is the actual profit earned from selling an asset, such as a stock or mutual fund, at a price higher than its purchase cost, after accounting for fees. It differs from unrealized (paper) gains, as it triggers tax liability only upon sale. Investors track realized gains for performance evaluation and tax planning, ensuring compliance with capital gains rules.
Related Terms
Equities
The term equities can be used to describe two different things. First, equities refers to stocks held by shareholders. Equities of this type represent residual ownership or stake in a company.
Second, equities are the amount of money shareholders shall receive in the event that a company is liquidated. In such a case, the equities will be calculated by subtracting the total debt from total assets.
Range Bound
Range Bound refers to a market or stock price that fluctuates within a defined horizontal channel, between clear support and resistance levels, without establishing a strong trend. Prices oscillate as buying pressure at the lower bound meets selling at the upper bound, indicating indecision among investors. This condition suits range-trading strategies using oscillators like RSI, but breakouts can signal trend changes.
Basing
Basing happens when a security trades sideways after prolonged periods of falling prices.
As a result, the security forms a “base” or flat pattern which means there is little to no upward or downward movement and a decline in volatility.
This may go on for a relatively long time but is crucial as basing is an indicator of any meaningful reversal that may happen.
As a result, the security forms a “base” or flat pattern which means there is little to no upward or downward movement and a decline in volatility.
This may go on for a relatively long time but is crucial as basing is an indicator of any meaningful reversal that may happen.
Ichimoku Cloud
Ichimoku Cloud is a group of technical indicators that’s used to understand trends, momentum, support,
and resistance by calculating averages.
Furthermore, the Ichimoku Cloud indicator is made up of two components:
- TenkanSen: The short-term indicator
-
KijunSen: The long-term indicator
There’s a cloud that’s formed as a result of plotting the averages and using the components on a chart.
One glance at this cloud can tell you multiple things like:
- Uptrend: If the price is above the cloud
- Downtrend: If the price is below the cloud
- Neutral: If the price is in the cloud
Moreover, if the cloud and the price are moving in the same direction, there’s much more confidence in the
trend that’s forming. In fact, it’s a trading signal.
MACD
MACD (Moving Average Convergence Divergence) is a technical indicator used to identify entry or exit signals when trading stocks, futures, options, and others. MACD consists of two lines as follows: MACD line Signal line The MACD line represents the difference between two exponential moving averages, while the signal line is a moving average of the MACD line.
Listing
Listing is the process of a private company making its shares available for trading to the public on a recognized stock exchange. To do so, the company meet regulatory requirements and checks. Getting approval means going public and welcoming bids from potential investors.
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