Glossary

A quick overview of the most frequently used terms in the industry.

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Aussie:

Slang term for the Australian dollar (AUD).

Automated Trading System (ATS):

A computer program that automatically executes trades based on predetermined rules and algorithms.

Average Directional Movement Index (ADX):

A technical analysis indicator that measures the strength of a trend.

Average True Range (ATR):

A technical analysis indicator that measures market volatility.

Ask Price:

The price at which a seller is willing to sell a security or asset.

Alpha:

A measure of investment performance compared to a benchmark index.

Arbitrage:

The practice of profiting from price differences between markets.

Asset Allocation:

The process of dividing an investment portfolio among different asset classes to balance risk and reward.

At the Market:

An order to buy or sell a security at the current market price.

American Option:

An option that can be exercised any time before its expiration date.

Accrued Interest:

The interest that has accumulated on a bond or other fixed-income security since its last interest payment.

Annual Report:

A yearly statement from a company that provides information on its financial performance, operations, and strategy.

Alpha Generation:

The process of creating excess returns beyond a benchmark through active management.

All or None (AON):

A trade order that must be filled entirely or not at all.

Ascending Triangle:

A technical analysis pattern that indicates a bullish market trend.

Asset-Backed Security (ABS):

A security backed by a pool of assets, such as mortgages, auto loans, or credit card debt.

Auction Market:

A market where buyers and sellers submit orders that are matched by an auctioneer.

Authorized Shares:

The maximum number of shares of a company's stock that can be issued.

Average Down:

Buying more shares of a security at a lower price to reduce the average cost per share.

Away from the Market:

A trade executed at a price outside the current market price.

Balance (Account Balance):

The total amount of funds in a trading account.

Bank Rate:

The interest rate at which central banks lend money to commercial banks.

Barrel:

A unit of measurement for crude oil and petroleum products.

Bear:

An investor who expects a market or asset to decline in value.

Bearish:

A market or asset exhibiting a downward trend.

Bitcoin (BTC):

The first and most well-known cryptocurrency.

Bollinger Bands:

A technical analysis tool that measures volatility and helps identify potential price reversals.

Bid:

The price at which a buyer is willing to purchase a security or asset.

Blue Chip Stocks:

Stocks of established companies with a history of stable earnings and dividend payments.

Bond:

A debt security issued by a government or company that pays periodic interest to the investor.

Breakout:

A price movement that breaks through a significant level of support or resistance.

Broker:

An individual or firm that executes trades on behalf of investors.

Bull:

An investor who expects a market or asset to increase in value.

Bullish:

A market or asset exhibiting an upward trend.

Buy Limit Order:

An order to buy a security at a specified price or lower.

Buy Stop Order:

An order to buy a security at a specified price or higher.

Basis Point:

A unit of measurement for interest rates and bond yields, equal to 0.01%.

Basket:

A group of securities or assets that are traded together.

Basis:

The difference between the spot price of a commodity and the futures price for delivery at a future date.

Beta:

A measure of a stock's volatility relative to the overall market.

Cable:

Slang term for the exchange rate between the British pound (GBP) and the US dollar (USD).

CAD:

The currency code for the Canadian dollar.

Caixin Manufacturing PMI:

An economic indicator that measures the performance of China's manufacturing sector.

Capital Expenditure:

The amount of money a company spends on purchasing or maintaining assets.

Capital Gains:

Profits made from selling an asset for more than its original purchase price.

CFD (Contract for Difference):

A financial contract that allows traders to speculate on the price movements of an underlying asset.

Chart:

A visual representation of a security or asset's price movements over time.

Closed Position:

An investment position that has been sold or closed out.

Commission:

A fee charged by a broker or other financial institution for executing a trade on behalf of an investor.

Correlation:

A statistical measure of how closely two assets or securities move in relation to each other.

Counterparty:

The other party in a financial transaction.

CPI (Consumer Price Index):

An economic indicator that measures changes in the price of goods and services over time.

Currency Pair:

The two currencies being exchanged in a forex trade.

Currency Risk:

The potential loss that can occur from changes in exchange rates when investing in foreign currencies.

Current Assets:

Assets that can be converted into cash within one year.

Current Liabilities:

Debts that are due within one year.

Custodian:

A financial institution that holds and safeguards assets on behalf of investors.

Candlestick Chart:

A type of chart used in technical analysis that displays the open, high, low, and close prices of a security or asset.

Central Bank:

A financial institution that manages a country's monetary policy and regulates its financial system.

Carry Trade:

A trading strategy that involves borrowing money in a low-interest-rate currency and investing it in a higher-interest-rate currency.

Daily Chart:

A chart that displays the price movements of a security or asset over a single day.

Day Trading:

A trading strategy that involves opening and closing positions within the same trading day.

Depth Of Market (DOM):

A trading tool that displays the current bids and offers for a particular security or asset.

Dividend:

A payment made by a company to its shareholders, typically from the company's profits.

Dark Pool:

A private trading venue that allows investors to buy and sell securities without the transactions being publicly visible.

Debt-to-Equity Ratio:

A financial ratio that measures a company's debt relative to its equity.

Derivative:

A financial instrument that derives its value from an underlying asset, such as a stock or commodity.

Dilution:

The reduction in a shareholder's ownership percentage in a company due to the issuance of new shares.

Direct Market Access (DMA):

A trading system that allows investors to place orders directly with an exchange.

Diversification:

A risk management strategy that involves investing in a variety of assets to reduce overall risk.

Dividend Yield:

A financial ratio that measures the dividend payments made by a company relative to its share price.

Drawdown:

The peak-to-trough decline in the value of an investment or trading account.

Due Diligence:

The process of investigating and analyzing a company or investment opportunity before making a decision to invest.

Duration:

A measure of a bond's sensitivity to changes in interest rates.

Dark Cloud Cover:

A candlestick pattern in technical analysis that signals a potential reversal in an uptrend.

Day Order:

An order that is valid only for the trading day on which it was placed.

Debt Security:

A financial instrument that represents a company or government's debt, such as a bond or note.

Dead Cat Bounce:

A temporary recovery in the price of a security or asset that is followed by a further decline.

Dividend Aristocrats:

Companies that have consistently increased their dividend payments for at least 25 consecutive years.

Debt Ceiling:

The legal limit on the amount of debt that a government can issue.

Economic Calendar:

A calendar that displays the scheduled economic events and data releases that may impact financial markets.

Effective Exchange Rate (REER):

A weighted average of a currency's exchange rate relative to other currencies, adjusted for inflation.

Elliott Wave Theory:

A technical analysis approach that uses wave patterns to identify market trends and reversals.

End Of Day Order:

An order to buy or sell a security that will be executed at the end of the trading day.

Exchange Rate:

The price of one currency in terms of another currency.

Execution:

The process of completing a trade or order in the market.

Expert Advisor:

A software program that uses algorithms to automatically execute trades on behalf of traders.

Ex-Dividend:

The period of time after a dividend has been declared but before it is paid, during which the stock price may adjust.

Eurozone:

The group of European Union countries that use the euro as their common currency.

ETF (Exchange-Traded Fund):

A type of investment fund that trades like a stock on a stock exchange.

European Central Bank (ECB):

The central bank responsible for monetary policy in the eurozone.

Equity:

The ownership interest in a company, represented by the value of the company's assets minus its liabilities.

Exchange:

A marketplace where buyers and sellers can trade securities, commodities, and other financial instruments.

Earnings Per Share (EPS):

A financial ratio that measures a company's net income divided by the number of outstanding shares.

E-mini:

A smaller version of a futures contract, traded on an electronic exchange.

Exotic Currency:

A currency that is not commonly traded in the foreign exchange market, such as the Thai baht or the South African rand.

Early Exercise:

The practice of exercising an option before its expiration date.

Enterprise Value (EV):

A financial metric that measures a company's total value, including its debt and equity.

Execution Only:

A type of brokerage service that only executes trades on behalf of clients, without providing investment advice.

Exponential Moving Average (EMA):

A technical analysis indicator that gives more weight to recent price data than older data.

Failure Swing:

A technical analysis pattern in which the price attempts to break a previous high or low but fails to do so.

Fakeout:

A false breakout where the price briefly moves beyond a key level but then quickly reverses course.

Fibonacci:

A series of numbers in which each number is the sum of the two preceding numbers. Fibonacci retracements are used to identify potential levels of support and resistance.

Fisher Effect:

A theory that suggests a direct relationship between interest rates and inflation, meaning that an increase in interest rates will lead to a corresponding increase in inflation.

FOMC Meeting:

A meeting of the Federal Open Market Committee, which sets monetary policy for the Federal Reserve.

Forex (FX):

The foreign exchange market, where traders buy and sell different currencies.

Fundamental Analysis:

An approach to analyzing the financial markets that focuses on the underlying economic, financial, and other qualitative and quantitative factors that affect the price of an asset.

Forward Contract:

A contract that obligates two parties to buy or sell an underlying asset at a specific price and date in the future.

Front-Running:

The unethical practice of buying or selling a security based on knowledge of a pending transaction by a third party.

Fill or Kill (FOK):

An order type that requires a trade to be executed immediately and completely, or else cancelled.

Fractal:

A mathematical pattern that repeats itself at different scales, used in technical analysis to identify trends and support/resistance levels.

Floor Trader:

A trader who works on the floor of an exchange, executing trades on behalf of clients or for their own account.

Fixed Income:

Investments that pay a fixed rate of return, such as bonds or CDs.

Free Float:

The number of shares of a company that are available for trading on the open market, excluding shares held by insiders and other restricted shares.

Futures Contract:

An agreement to buy or sell an underlying asset at a specific price and date in the future.

Financial Risk:

The risk of loss due to changes in market conditions, interest rates, credit ratings, or other financial factors.

Fund Manager:

A professional who manages a portfolio of investments on behalf of clients, such as mutual funds or hedge funds.

Fair Value:

The estimated value of an asset based on its market price, financial statements, and other relevant factors.

Face Value:

The nominal or stated value of a security, such as a bond or stock.

Fixed Exchange Rate:

A monetary system in which the value of a country's currency is fixed to the value of another currency or to a fixed commodity such as gold.

Gap:

A price level on a chart where there is no trading activity between the previous day's close and the current day's open.

Gamma:

A measure of the rate of change in an option's delta in relation to changes in the price of the underlying asset.

Gann Theory:

A technical analysis method that uses geometric angles and mathematical ratios to identify support and resistance levels in the market.

Gasoline:

A commodity that is traded on the futures market, with contracts based on the price of a gallon of gasoline.

Good 'Til Cancelled (GTC):

An order type that remains in effect until it is filled or cancelled by the trader.

Go Long:

To buy a security with the expectation that its price will rise.

Go Short:

To sell a security with the expectation that its price will fall.

Gold:

A commodity that is traded on the futures market, with contracts based on the price of an ounce of gold.

Golden Cross:

A bullish technical indicator that occurs when a short-term moving average crosses above a long-term moving average.

Gravestone Doji:

A candlestick pattern that forms when the open, high, and close prices are all at the same level, indicating a potential reversal from an uptrend to a downtrend.

Greenback:

A slang term for the U.S. dollar.

Grid:

A trading strategy that involves placing buy and sell orders at regular intervals above and below the current price, with the goal of profiting from small price movements.

Gross Domestic Product (GDP):

The total value of all goods and services produced within a country's borders during a specific period, usually measured on an annual basis.

Growth Stock:

A stock of a company that is expected to grow at a rate faster than the overall market.

Guaranteed Stop Loss:

An order type that guarantees a specific exit price for a trade, regardless of market conditions.

GTC:

Good 'Til Cancelled. An order type that remains in effect until it is filled or cancelled by the trader.

Guppy Multiple Moving Average (GMMA):

A technical analysis tool that uses two sets of moving averages to identify trends in the market.

Gap Risk:

The risk of a sudden price movement that occurs when the market opens after a weekend or holiday.

GTC Order:

A type of order that remains open until filled or cancelled by the trader.

Gamma Scalping:

A trading strategy that involves buying and selling options to maintain a neutral delta position while profiting from changes in gamma.

Hammer:

A bullish reversal candlestick pattern that forms when the price opens near the low of the day, but then rallies to close near the high of the day.

Harami:

A candlestick pattern that forms when a small candle is contained within the range of the previous candle, indicating a potential trend reversal.

Head and Shoulders:

A bearish reversal pattern that forms when a stock's price rises to a peak and then falls, followed by a second rise to a higher peak, and then falls again.

Hedge:

A strategy used to reduce the risk of loss by taking an offsetting position in a related security or asset.

Hedge Fund:

A private investment fund that uses a variety of strategies to generate returns for its investors, often by taking both long and short positions in the market.

Holder:

The owner of a security, such as a stock or bond.

High-Frequency Trading (HFT):

A type of trading that uses powerful computers and algorithms to execute trades at very high speeds, often in milliseconds or less.

Horizontal Channel:

A trading range that occurs when the price of a security moves within a defined range over an extended period of time.

Hot IPO:

An initial public offering (IPO) that generates a high level of interest from investors and often experiences a significant increase in price on its first day of trading.

Hot IPO:

An initial public offering (IPO) that generates a high level of interest from investors and often experiences a significant increase in price on its first day of trading.

Housing Starts:

A monthly report that measures the number of new residential construction projects started during a specific period.

Hurdle Rate:

The minimum rate of return that a hedge fund or other investment must achieve in order to justify the fees charged to investors.

Hybrid Security:

A financial instrument that combines the features of both debt and equity securities.

Horizontal Spread:

A type of options spread that involves buying and selling options with the same expiration date but different strike prices.

Historical Volatility:

A measure of the variability of a security's price over a specific period of time, based on past price movements.

Hanging Man:

A bearish reversal candlestick pattern that forms when the price opens near the high of the day, but then falls to close near the low of the day.

Head Fake:

A false signal or indicator that leads traders to believe that a particular trend or direction is emerging in the market.

High Water Mark:

The highest value that a hedge fund or other investment has achieved in the past, used to calculate performance fees.

Hidden Divergence:

A type of technical analysis indicator that occurs when the price of a security is moving in one direction while an oscillator or other indicator is moving in the opposite direction.

Home Sales:

A monthly report that measures the number of existing homes sold during a specific period.

Index:

A statistical measure of the performance of a market or a specific sector.

Initial Margin:

The minimum amount of money or collateral required to open a position in a financial instrument.

Interest Rate:

The rate at which interest is paid by borrowers or earned by lenders on a loan or investment.

Investment Fund:

A pool of money managed by an investment company that is used to purchase a diversified portfolio of financial assets.

Inflation:

The rate at which the general level of prices for goods and services is increasing over time.

Intraday:

Refers to trading activities that occur within the same trading day.

Inverse Correlation:

A relationship between two financial instruments in which they move in opposite directions.

IPO:

Initial Public Offering, which is the first sale of stock by a private company to the public.

ISM Manufacturing Index:

A monthly economic report that measures the activity level of the manufacturing sector in the US.

IFO Business Climate Index:

A monthly survey of German businesses that measures their sentiment and expectations for the future.

Interbank Rates:

The interest rates at which banks lend to and borrow from each other.

Ichimoku Cloud:

A technical analysis tool that uses multiple moving averages to identify potential trading opportunities.

Inside Bar:

A candlestick pattern that forms when the high and low of a bar are within the high and low of the previous bar.

Introducing Broker:

A person or entity that refers clients to a brokerage firm and receives a commission for doing so.

In-the-Money:

Refers to an options contract that would be profitable if it were exercised immediately.

Implied Volatility:

A measure of the expected volatility of an underlying asset based on the prices of its options contracts.

Institutional Investor:

A large financial organization, such as a pension fund, insurance company, or mutual fund, that invests money on behalf of its clients.

International Monetary Fund:

An organization that promotes international monetary cooperation and provides advice, loans, and technical assistance to member countries.

Iron Butterfly:

A complex options trading strategy that involves selling both a put and a call option at the same strike price, while also buying a put and a call option at different strike prices.

Investment Grade:

A rating given to bonds that are considered to be of low risk and high quality by credit rating agencies.

Japanese Candlestick Chart:

A type of chart used in technical analysis that displays price movements using candlestick shapes.

JPY:

The currency code for the Japanese Yen.

Jobber:

A trader who specializes in short-term trades with quick profit-taking.

J Curve:

A graphical representation of a country's trade balance after a devaluation of its currency.

Jitter:

A sudden and rapid movement in currency prices.

Joint account:

An account owned by two or more individuals or entities.

Jumbo loan:

A loan that exceeds the maximum amount that Fannie Mae and Freddie Mac are willing to purchase.

Journal:

A record of all transactions that occur in a trading account.

JPY crosses:

Forex pairs that include the Japanese Yen.

Judgmental forecasting:

A forecasting technique that relies on the knowledge and expertise of individuals to predict future events.

J-curve effect:

The phenomenon where a country's trade balance worsens initially after a currency devaluation before improving in the long run.

Jump diffusion:

A type of financial model that incorporates both continuous and discontinuous price movements.

JPY basket:

A group of currencies that are weighted against the Japanese Yen.

Jargon:

Specialized language used in the forex market.

JPY index:

A weighted index that tracks the performance of the Japanese Yen against a basket of other currencies.

JPY bond:

A bond denominated in Japanese Yen.

Jumbo certificate of deposit:

A type of CD that requires a minimum deposit of $100,000.

Joint venture:

A business arrangement where two or more parties agree to pool their resources to achieve a specific goal.

Just in time (JIT):

A manufacturing strategy that aims to reduce inventory levels and increase efficiency.

J curve theory:

The idea that a country's trade balance will initially worsen after a currency devaluation before improving in the long run.

Kiwi:

Slang term for the New Zealand dollar (NZD).

Keltner Channel:

A technical analysis indicator used to determine potential trend reversals.

Kicker pattern:

A candlestick pattern that signals a reversal in trend.

Kijun Sen:

A component of the Ichimoku Kinko Hyo indicator used to measure momentum and trend direction.

Knock-in option:

A type of option that becomes active only when a certain price level is reached.

Knock-out option:

A type of option that becomes invalid when a certain price level is reached.

Kiosk:

A small physical location where currency exchange services are provided.

Known-unknowns:

Risks or uncertainties that are recognized but cannot be quantified or accurately predicted.

Keiretsu:

A type of Japanese business conglomerate that includes several companies with interlocking relationships.

Kicker:

A slang term for a quick and sudden movement in price.

KYC:

Stands for "Know Your Customer," the process by which financial institutions verify the identity of their clients.

Kumo:

The area between the Senkou Span A and Senkou Span B lines in the Ichimoku Kinko Hyo indicator.

Kondratieff wave:

A long-term economic cycle lasting approximately 50-60 years.

Kelly criterion:

A method for determining the optimal amount of capital to allocate to each trade or investment.

Kernel density estimation:

A statistical technique used to estimate the probability density function of a variable.

Kappa:

A measure of the sensitivity of an option's price to changes in implied volatility.

Key currency:

A major currency that is widely used as a reserve currency and in international trade.

Krone:

The currency of Denmark (DKK) and Norway (NOK).

Kibor rate:

The Karachi Interbank Offered Rate, a benchmark interest rate used in Pakistan.

Knock-in barrier option:

A type of option that only becomes active when the underlying asset reaches a certain price level.

Leverage:

The use of borrowed funds or financial instruments to amplify potential gains or losses.

Liquidity:

The ability of a financial instrument or market to be easily bought or sold without affecting its price.

Long:

The purchase of a financial instrument with the expectation that its price will rise.

Lot:

A standardized unit of measurement used in forex trading to indicate the size of a trade.

Limit order:

An order to buy or sell a financial instrument at a specified price or better.

London session:

The time period during which the London financial markets are open for trading.

Loonie:

Slang term for the Canadian dollar (CAD).

Leading indicator:

An economic indicator that provides insight into future economic activity.

LIBOR:

Stands for London Interbank Offered Rate, a benchmark interest rate used in financial markets.

Long position:

The ownership of a financial instrument with the expectation that its price will rise.

Lot size:

The number of units of a financial instrument that are included in a single trade.

Last look:

A practice in which liquidity providers have the opportunity to reject trades after receiving them from market participants.

Limit order book:

A record of all outstanding limit orders for a financial instrument.

Lock limit:

A price limit beyond which trading is not allowed for a financial instrument.

Loonie pairs:

Forex pairs that include the Canadian dollar (CAD).

Liquidity provider:

A market participant that provides liquidity by offering to buy and sell financial instruments.

Leptokurtosis:

A measure of the degree of peakedness of a probability distribution.

Ladder option:

An option that allows traders to establish multiple strike prices and expiration dates for a single instrument.

Lot-based commission:

A fee charged by brokers for facilitating a trade that is based on the lot size.

Ladder strategy:

A trading strategy that involves buying and selling financial instruments at different price levels to capture gains or losses.

Margin:

The amount of funds required to open and maintain a leveraged position in forex trading.

Market maker:

A financial institution that provides liquidity by buying and selling financial instruments.

Moving average:

A technical analysis indicator used to smooth out price fluctuations and determine trend direction.

Major pairs:

Forex pairs that include the US dollar (USD) and another major currency.

Monetary policy:

The actions taken by a central bank to manage the supply of money and interest rates in an economy.

Micro lot:

A lot size in forex trading that is equal to 1,000 units of the base currency.

Momentum:

The rate of change in the price of a financial instrument over time.

MACD:

Stands for Moving Average Convergence Divergence, a technical analysis indicator used to identify trend changes.

Margin call:

A request by a broker to deposit additional funds into a trading account to meet margin requirements.

Mini lot:

A lot size in forex trading that is equal to 10,000 units of the base currency.

Market order:

An order to buy or sell a financial instrument at the current market price.

Monetary base:

The total amount of currency in circulation in an economy.

Margin requirement:

The minimum amount of funds required to open and maintain a leveraged position in forex trading.

Market risk:

The risk of loss arising from adverse movements in market prices.

Monetary union:

A group of countries that share a common currency and monetary policy.

Margin trading:

The practice of using borrowed funds to trade financial instruments.

Managed account:

A trading account in which the account holder authorizes another party to make trades on their behalf.

Mid-price:

The price halfway between the bid and ask prices for a financial instrument.

Money supply:

The total amount of money in circulation in an economy.

Market sentiment:

The overall attitude of market participants towards a particular financial instrument or market.

Non-farm payroll:

A monthly report published by the US Bureau of Labor Statistics that provides information on employment levels in the non-farm sector of the economy.

NFP:

Abbreviation for non-farm payroll.

Narrow market:

A market in which trading activity is limited and price movements are small.

Nikkei:

An index of the Tokyo Stock Exchange that includes the top 225 companies traded on the exchange.

Net position:

The total amount of financial instruments that a trader or investor holds after taking into account open buy and sell positions.

New Zealand dollar:

The official currency of New Zealand (NZD).

Non-deliverable forward:

A type of forward contract that is settled in cash rather than by physical delivery of the underlying asset.

Notional value:

The value of a financial instrument or position based on the underlying asset or assets.

NYSE:

Stands for New York Stock Exchange, the largest stock exchange in the world by market capitalization.

NY session:

The time period during which the New York financial markets are open for trading.

Naked position:

A position in which a trader or investor holds a financial instrument without owning an offsetting position to mitigate risk.

Negative carry pair:

A forex pair in which the interest rate on the base currency is lower than the interest rate on the quote currency.

Noise:

Random fluctuations in price that are not driven by underlying economic fundamentals.

Non-market risk:

The risk of loss arising from factors outside of market movements, such as regulatory changes or geopolitical events.

Nominal interest rate:

The stated rate of interest on a financial instrument or loan without taking into account inflation or other factors.

Non-directional trading:

A trading strategy that seeks to profit from market volatility rather than directional price movements.

Netting:

The process of offsetting multiple trades or positions to reduce risk exposure.

Narrow spread:

A small difference between the bid and ask prices for a financial instrument.

Neutral:

A situation in which a financial instrument or market is neither bullish nor bearish, with no clear trend in either direction.

NOK:

Abbreviation for the Norwegian krone, the official currency of Norway.

Open position:

An active trade that has not yet been closed.

Order:

An instruction to buy or sell a financial instrument at a specific price.

Order book:

A list of buy and sell orders for a particular financial instrument.

Oscillator:

A technical analysis indicator that measures the momentum of price movements.

OTC market:

A decentralized market in which financial instruments are traded directly between parties, rather than through an exchange.

Offer:

The price at which a seller is willing to sell a financial instrument.

One cancels the other (OCO):

An order type that allows traders to place two orders simultaneously, with one being cancelled if the other is executed.

Open interest:

The total number of outstanding contracts for a particular financial instrument.

Option:

A financial instrument that gives the holder the right, but not the obligation, to buy or sell an underlying asset at a specific price.

Out-of-the-money:

An option that would not be profitable if it were exercised immediately.

Overnight position:

A position that is held open overnight and subject to rollover fees.

Overbought:

A condition in which a financial instrument has been bought to a point where its price is considered too high and may be due for a correction.

Over the counter (OTC):

See OTC market.

Oversold:

A condition in which a financial instrument has been sold to a point where its price is considered too low and may be due for a rebound.

Order flow:

The volume and direction of orders being placed for a particular financial instrument.

Order type:

A classification of an order based on its execution instructions, such as market order, limit order, or stop order.

Outright forward:

A type of forward contract that involves the exchange of one currency for another at a specific future date and rate.

Outright option:

An option that allows the holder to buy or sell a financial instrument at a specific price on or before a specific date.

Offshore:

A term used to describe financial institutions or investments that are located outside the investor's home country.

Oil market:

A market in which crude oil and related products are traded, often used as a benchmark for global economic activity.

Pips:

The smallest unit of measurement for a currency pair's price movement.

Position:

The amount of a financial instrument owned or controlled by an investor or trader.

Profit and loss (P&L):

The amount of money gained or lost from a trade or investment.

Position trader:

A trader who holds positions for a longer period of time, typically weeks to months.

Price action:

The movement of a financial instrument's price over time, often analyzed using technical analysis.

Price quote:

The current market price of a financial instrument.

Pending order:

An order to buy or sell a financial instrument at a specified price in the future.

Pipette:

A fractional pip used to quote currency pairs with greater precision.

Portfolio:

A collection of financial instruments owned by an investor or trader.

Primary market:

The market in which newly issued securities are sold for the first time.

Price discovery:

The process by which market forces determine the current market price of a financial instrument.

Put option:

An option that gives the holder the right, but not the obligation, to sell an underlying asset at a specific price.

Publicly traded:

A company whose shares are available for purchase on a stock exchange.

Pullback:

A temporary reversal in the direction of a financial instrument's price movement.

Pyramiding:

A trading strategy in which a trader adds to a winning position as it moves in their favor.

Pivot point:

A technical analysis indicator used to identify potential support and resistance levels.

Position sizing:

The process of determining the appropriate amount of a financial instrument to buy or sell based on risk management considerations.

Price level:

A specific price at which a financial instrument is traded.

Portfolio manager:

An investment professional responsible for managing a portfolio of financial instruments on behalf of clients.

PEG ratio:

A valuation metric used to evaluate a company's stock price relative to its earnings growth potential.

Quote:

The current price at which a financial instrument can be bought or sold.

Quote currency:

The second currency in a currency pair, used to quote the price of the base currency.

Quantitative easing (QE):

A monetary policy in which a central bank buys financial assets in order to increase the money supply and stimulate economic growth.

Quantity:

The amount of a financial instrument being bought or sold in a transaction.

Quid:

Slang term for the British pound.

Quiet period:

A period of time before the release of a company's earnings report during which company executives are not allowed to discuss the company's financial performance.

Quotation:

The process of providing a price quote for a financial instrument.

Quick ratio:

A financial ratio used to measure a company's ability to pay its short-term debts with its most liquid assets.

Quota:

A limit on the amount of a particular financial instrument that can be traded.

Quote-driven market:

A market in which prices are set by market makers who provide quotes for financial instruments.

Quality spread differential (QSD):

The difference in yield between two fixed-income securities of different credit quality.

Quanto option:

An option that has been adjusted to account for currency exchange rate movements.

Quarterly report:

A report released by a publicly traded company every three months, detailing its financial performance over the past quarter.

Quasi money:

Assets that can be easily converted into cash but are not considered legal tender, such as money market funds or time deposits.

Quantitative analysis:

An approach to market analysis that uses mathematical and statistical models to identify patterns and trends in financial data.

Quorum:

The minimum number of members required to be present at a meeting in order for decisions to be made.

Quote stuffing:

A practice in which traders flood an exchange with a large number of orders in order to create false market activity and manipulate prices.

Quiescent market:

A market that is experiencing very little activity or volatility.

Quote currency pair:

A currency pair in which the quote currency is the same as the account currency.

Quietly bearish:

A term used to describe a market that is showing signs of weakness or downturn, but without any major sell-offs or drops in price.

Rate:

The price of one currency in terms of another currency.

Resistance:

A level on a price chart at which selling pressure is expected to outweigh buying pressure, resulting in a potential reversal in price movement.

Risk:

The potential for loss in a trade or investment.

Rollover:

The process of extending the settlement date of an open position in a currency pair.

Rally:

A sustained upward movement in the price of a financial instrument.

Range:

The difference between the highest and lowest price of a financial instrument over a given time period.

Reversal:

A change in the direction of a financial instrument's price movement.

Retracement:

A temporary reversal in the direction of a financial instrument's price movement within a larger trend.

Reward-to-risk ratio:

A ratio used to compare the potential profit of a trade to the potential loss.

Resistance level:

A price level at which a financial instrument is expected to encounter selling pressure.

Risk management:

The process of identifying, assessing, and managing risks in a trading or investment portfolio.

Relative strength index (RSI):

A technical analysis indicator used to identify overbought and oversold conditions in a financial instrument.

Retail trader:

An individual trader who trades with their own funds rather than on behalf of an institution.

Revaluation:

A change in the exchange rate of a currency relative to other currencies or a benchmark.

RMB:

The Chinese yuan, also known as renminbi.

Resistance area:

A range of prices at which a financial instrument is expected to encounter selling pressure.

Rate hike:

An increase in interest rates by a central bank, which can cause the currency of the country to appreciate.

Risk appetite:

The level of risk that an investor or trader is willing to take on.

Round number:

A psychological level on a price chart that ends in zero, such as $1.00 or €100.00.

Range-bound market:

A market in which the price of a financial instrument moves within a relatively narrow range over a period of time.

Spread:

The difference between the bid and ask price of a financial instrument.

Stop loss:

An order placed to limit potential losses in a trade by automatically closing a position at a predetermined price level.

Support:

A level on a price chart at which buying pressure is expected to outweigh selling pressure, resulting in a potential reversal in price movement.

Sell:

To take a short position on a financial instrument with the expectation that its value will decrease.

Scalping:

A trading strategy that involves opening and closing trades quickly in order to capture small profits from small price movements.

Spot market:

A market in which financial instruments are traded for immediate delivery or settlement.

Swap:

The interest rate differential between two currencies in a currency pair, often used in the calculation of rollover fees.

Sterling:

A common nickname for the British pound.

Support level:

A price level at which a financial instrument is expected to encounter buying pressure.

Speculation:

The practice of attempting to profit from changes in the value of financial instruments.

Spread betting:

A type of trading in which the trader bets on the direction of a financial instrument's price movement.

Slippage:

The difference between the expected price of a trade and the actual price at which the trade is executed.

Spread trading:

A trading strategy that involves taking offsetting positions in two related financial instruments in order to profit from the difference in their prices.

Stop order:

An order placed to automatically trigger a buy or sell trade at a specified price level.

Spot rate:

The exchange rate for immediate delivery or settlement of a currency.

Support area:

A range of prices at which a financial instrument is expected to encounter buying pressure.

Safe haven:

A financial instrument or currency that is considered a relatively safe investment during times of market turbulence.

Swing trading:

A trading strategy that involves holding positions for several days to several weeks in order to capture larger price movements.

Spread percentage:

The percentage difference between the bid and ask price of a financial instrument.

Sell limit order:

An order placed to automatically sell a financial instrument at a specified price level or higher.

Technical analysis:

The use of historical price data and other market data to identify patterns and trends in financial markets.

Trading platform:

A software application used to execute trades in financial markets.

Take profit:

An order placed to automatically close a position at a predetermined price level to lock in profits.

Tick:

The smallest possible price movement of a financial instrument.

Trader:

An individual or institution that buys and sells financial instruments for the purpose of making a profit.

Trend:

The general direction in which the price of a financial instrument is moving over time.

Trend line:

A line drawn on a price chart connecting a series of higher lows or lower highs to indicate the direction of a trend.

Trade signal:

A signal indicating a potential buying or selling opportunity in a financial instrument.

Trading strategy:

A set of rules and guidelines used by a trader to make trading decisions.

Trading volume:

The total number of shares or contracts traded in a financial market during a given period of time.

Technical indicator:

A mathematical calculation based on historical price data used to forecast future price movements.

Trading plan:

A written document outlining a trader's goals, strategies, and risk management rules.

Tick chart:

A type of price chart that shows each individual tick in a financial instrument's price movement.

Trade balance:

The difference between a country's exports and imports of goods and services.

Trailing stop:

A stop loss order that moves with the price of a financial instrument to lock in profits as the price rises.

Two-way quote:

A quote that includes both the bid and ask price of a financial instrument.

Timeframe:

The length of time represented by each candle or bar on a price chart.

Trading psychology:

The mental and emotional aspects of trading, including discipline, patience, and emotional control.

Technical pattern:

A recognizable pattern in a financial instrument's price movement that is used to predict future price movements.

Trade execution:

The process of opening or closing a position in a financial instrument.

Unemployment rate:

A measure of the percentage of the labor force that is currently unemployed and actively seeking employment.

Uptrend:

A market trend characterized by higher highs and higher lows in the price of a financial instrument.

Underlying asset:

The asset on which a derivative contract is based, such as a currency pair, stock, or commodity.

Unwinding:

The process of closing out a position in a financial instrument.

USD:

The currency code for the United States dollar, the world's most widely traded currency.

Used margin:

The amount of a trader's account equity that is currently being used to hold open positions in financial instruments.

U-turn:

A sudden change in the direction of a financial instrument's price movement.

Unit of account:

A monetary unit used to measure the value of goods and services in an economy.

Uptick:

A price increase of a financial instrument from one trade to the next.

Uncovered interest rate parity:

A theory that suggests that the difference in interest rates between two currencies should be reflected in the exchange rate between those currencies.

User interface:

The visual and interactive elements of a trading platform that allow traders to execute trades and access market information.

Unilateral contract:

A type of financial contract in which one party is obligated to fulfill the terms of the contract, while the other party has the option to do so.

USD/JPY:

The currency pair representing the exchange rate between the US dollar and the Japanese yen.

U-shaped recovery:

An economic recovery that is characterized by a sharp decline followed by a gradual, prolonged recovery.

Unregulated market:

A financial market that is not subject to government regulation or oversight.

Undercapitalization:

A situation in which a trader does not have enough capital to cover potential losses.

Utility:

The level of satisfaction or benefit derived from the consumption of a good or service.

Universal currency:

A theoretical single currency that could be used globally to facilitate international trade and finance.

Up-and-in option:

A type of financial option that becomes active only if the underlying asset reaches a certain price level.

Uncovered option:

A type of financial option in which the seller of the option does not hold a position in the underlying asset.

Value date:

The date on which a financial transaction is settled and funds are exchanged.

Volatility:

A measure of the degree of variation of a financial instrument's price over time.

Volume:

The total number of shares or contracts traded for a financial instrument during a specific time period.

Variance swap:

A type of financial derivative that allows traders to bet on the level of volatility in a financial market.

Variation margin:

The additional margin required by a broker to be added to a trading account to cover losses on open positions.

Venture capital:

Capital provided to new or growing companies by investors in exchange for an ownership stake.

Velocity:

The rate at which money is exchanged in an economy.

VIX:

The ticker symbol for the CBOE Volatility Index, a popular measure of market volatility.

Volatility smile:

A graphical representation of the relationship between the implied volatility of financial options and their strike price.

Venture capitalist:

An investor who provides venture capital to new or growing companies in exchange for an ownership stake.

Valuation:

The process of determining the value of a financial instrument, company, or asset.

Venture debt:

Debt financing provided to early-stage or growing companies that do not yet have the creditworthiness to secure traditional loans.

Vertical spread:

A type of options trading strategy involving the simultaneous purchase and sale of options with different strike prices but the same expiration date.

VaR:

Stands for "value at risk," a measure of the maximum potential loss for a financial instrument or portfolio over a specific time period and at a specific level of confidence.

Value investing:

A strategy of investing in undervalued companies in the hopes of realizing long-term gains as their value is recognized by the market.

Vectorvest:

A software program for stock analysis and portfolio management.

Virtual trading:

Simulated trading using virtual funds to practice trading strategies and gain experience without risking real money.

Voluntary disclosure:

The act of a company voluntarily providing financial or other information to the public or to shareholders.

Venture exchange:

A stock exchange that specializes in listing and trading shares of early-stage or growing companies.

Vostro account:

A foreign currency account held by a bank on behalf of another bank.

Warrant:

A financial instrument that gives the holder the right to buy or sell an underlying asset at a specific price before a certain date.

Weekly chart:

A chart that displays price movements over a week-long period.

Whipsaw:

A market condition in which a financial instrument rapidly fluctuates between bullish and bearish signals.

Weak currency:

A currency that has lost value relative to other currencies.

World Bank:

An international financial institution that provides loans and grants to developing countries for capital projects.

World Trade Organization (WTO):

An international organization that regulates and promotes international trade.

Wall Street:

The financial district in New York City, home to the New York Stock Exchange and many other financial institutions.

Working capital:

The capital available to a company for its day-to-day operations.

Wave:

A pattern of price movements in technical analysis.

Weighted moving average (WMA):

A type of moving average that assigns greater weight to more recent price data.

White label:

A product or service that is produced by one company but rebranded and sold by another company.

Western Union:

A financial services company that specializes in money transfers and payments.

World Economic Forum (WEF):

An annual conference held in Davos, Switzerland, where business leaders, politicians, and academics gather to discuss global economic issues.

Winning trade:

A trade that generates a profit for the trader.

Wide bid-ask spread:

The difference between the highest price a buyer is willing to pay for a financial instrument and the lowest price a seller is willing to accept.

Wire transfer:

A method of electronically transferring funds from one bank account to another.

Wildcard option:

An option that can be exercised at any time during its lifetime.

Wash sale:

A transaction in which a trader sells a financial instrument at a loss and then repurchases it shortly thereafter.

World Currency:

A theoretical single global currency that would replace all national currencies.

ZAR:

The currency code for the South African rand.

Zero-sum game:

A situation in which one participant's gain is exactly balanced by another participant's loss.

Zigzag indicator:

A technical analysis tool used to identify trend reversals in financial markets.

Zone:

A range of prices or market levels that may be considered important for a financial instrument.

Z-score:

A statistical measure that reflects the number of standard deviations a data point is from the mean of a data set.

Zero-coupon bond:

A type of bond that pays no interest during its lifetime but is sold at a discount to its face value.

ZEW Economic Sentiment:

A survey conducted by the Centre for European Economic Research that measures the economic sentiment of financial experts in Germany.

Zloty:

The currency of Poland.

Zonal analysis:

A method of technical analysis that divides a price chart into zones based on historical price movements.

Z-score normalization:

A method of scaling numerical data to a standard distribution.

ZEW Indicator of Economic Sentiment:

A leading economic indicator for the Eurozone based on the opinions of financial analysts and institutional investors.

Zero-lag moving average:

A technical indicator that attempts to eliminate lag in the calculation of moving averages.

ZIRP:

Zero interest rate policy, a monetary policy in which a central bank sets interest rates at or near zero to stimulate economic growth.

Zone of support:

A price level or range where demand for a financial instrument is expected to be strong enough to prevent the price from falling further.

Zone of resistance:

A price level or range where supply of a financial instrument is expected to be strong enough to prevent the price from rising further.