Accounts payable (AP)
General Finance
A company's short-term debt to suppliers for goods and services received.
General Finance
Accounts receivable (AR)
General Finance
A company's asset represented as an amount owed by customers for goods and services provided.
General Finance
Accrued interest
Bonds
Interest that has accumulated on a bond or other fixed-income securities since its last interest payment.
Bonds
Acquisition
General Finance
The process of obtaining an asset, which can impact parties like employees, customers, and shareholders.
General Finance
After-hours trading
General Finance
Trading that occurs after regular market hours.
General Finance
Aggregation
General Finance
Merging futures contracts to increase market exposure and manage risk, often achieved through spreads or strips.
General Finance
All or none (AON)
General Finance
A trade order that must be filled entirely or not at all.
General Finance
American option
General Finance
An option that can be exercised any time before its expiration date.
General Finance
Annual report
General Finance
A yearly statement from a company that provides information on its financial performance, operations and strategy.
General Finance
Annualised Return
General Finance
The investment's return on an annual basis, considering the investment duration and any changes in its value over time.
General Finance
Ask price
Manual Trading
The lowest price at which a seller accepts a security. Also known as the "offer price", it will always be higher than the bid price.
Manual Trading
Asset
General Finance
An intangible, liquid economic resource that can be traded by individuals and institutions.
General Finance
Asset class
General Finance
A collection of assets that share a common financial structure.
General Finance
Asset-backed security (ABS)
General Finance
A security backed by a pool of assets, such as mortgages, auto loans or credit card debt.
General Finance
At the market
General Finance
An order to buy or sell a security at the current market price.
General Finance
Auction market
General Finance
A market where buyers and sellers submit orders that are matched by an auctioneer.
General Finance
Authorised shares
General Finance
The maximum number of shares of a company's stock that can be issued.
General Finance
Automated trading system (ATS)
General Finance
A computer program that automatically executes trades based on predetermined rules and algorithms.
General Finance
Average directional movement index (ADX)
Technical Analysis
A technical indicator that measures the strength of a trend.
Technical Analysis
Average down
Strategies
Buying more shares of a security at a lower price to reduce the average cost per share.
Strategies
Average holding time
Manual Trading
The average duration that a trader holds their position open for.
Manual Trading
Average true range (ATR)
Technical Analysis
A technical indicator that measures market volatility.
Technical Analysis
Away from the market
Strategies
A trade executed at a price outside the current market price.
Strategies
Balance
Manual Trading
The total remaining amount of funds in an account.
Manual Trading
Bank rate
General Finance
The interest rate at which central banks lend money to commercial banks.
General Finance
Bank reserve
General Finance
Funds held by banks to ensure they have enough liquidity to meet customer needs and for emergencies.
General Finance
Barrel
Commodities
A unit of measurement for crude oil and petroleum products.
Commodities
Basis point
Bonds
A unit of measurement for interest rates and bond yields, equal to 0.01%.
Bonds
Basket
Indices
A group of securities or assets that are traded together.
Indices
Bear market
Markets
A prolonged period of declining prices, typically marked by a 20% or more drop from recent highs, also referred to as "bearish".
Markets
Bid price
Manual Trading
The highest price at which a buyer pays for a security; always lower than the ask price.
Manual Trading
Bitcoin (BTC)
Cryptocurrencies
The first and most well-known cryptocurrency.
Cryptocurrencies
Blue-Chip Stock
Markets
Blue-chip stocks are reliable investments from well-established companies known for consistent growth, strong financials, and diverse product portfolios.
Markets
Bollinger bands
Technical Analysis
A technical indicator that measures volatility and helps identify potential price reversals.
Technical Analysis
Bonds
Bonds
Bonds are investment securities issued by a company or government to fund projects or operations.
Bonds
Breakout
Technical Analysis
When an asset's price makes a sudden movement past support and resistance levels, indicating potential oppotunities for trend changes.
Technical Analysis
Broker
Markets
An intermediary between an investor and the markets that provides services like trade execution and market analysis for a fee or commission.
Markets
Broker-dealer
Markets
An individual that acts as both a broker agent and principal trader, placing trades on behalf of their clients while simultaneously trading on their own account.
Markets
Bull market
Markets
An extended upward trend, marked by a 20% or more price increase from recent lows.
Markets
Business cycle
Markets
A natural economic fluctuation typically lasting around 5 years per cycle.
Markets
Buy and sell
Manual Trading
The two primary drivers of trading. Timing these actions determines whether an investor makes a profit or loss.
Manual Trading
Buy limit order
Manual Trading
An order to buy a security at a specified price or lower.
Manual Trading
Buy stop order
Manual Trading
An order to buy a security at a specified price or higher.
Manual Trading
Buy-and-hold
Strategies
A passive investment strategy where an investor holds a position in hopes to generate a long-term return.
Strategies
Buybacks
Strategies
When a corporation repurchases its shares to balance supply and demand, potentially raising stock prices.
Strategies
CAD
Forex
The currency code for the Canadian dollar.
Forex
Candlestick Chart
Candlesticks
A chart showing a product or market's historical and real-time prices, used to identify patterns and trends.
Candlesticks
Capital
General Finance
Funds allocated for expenditure, such as to perform trading activities.
General Finance
Capital Return
General Finance
The return on the investment resulting from fluctuations in the underlying asset's value, such as the price change of a stock.
General Finance
Carry Trade
Strategies
A carry trade is a strategy where an investor borrows a lower-yielding currency to buy a higher-yielding one, profiting from the interest rate gap.
Strategies
Central bank
General Finance
A financial institution that manages a country's monetary policy and regulates its financial system.
General Finance
Closed position
Manual Trading
An order that has been sold or closed out.
Manual Trading
Closing market price
Markets
The closing market price is the latest price that an asset was traded in the overall market.
Markets
Closing price
Markets
The closing price is the latest price that an asset was traded on the exchange.
Markets
Commission
Markets
A service charge by a broker or dealer for conducting trade executions or providing investment advice.
Markets
Commodities
Commodities
Raw materials manufactured into consumer goods, categorised as hard (minable like gold and silver) or soft (harvestable like coffee and cotton).
Commodities
Consumer price index (CPI)
Markets
A report that tracks the average prices of daily necessities like food, healthcare, housing, and transportation.
Markets
Contract for difference (CFD)
Manual Trading
A financial contract that allows traders to speculate on the price movements of an underlying asset.
Manual Trading
Copy trading
Copy Trading
The act of mirroring another trader's real-time trades, reducing the need to actively observe the market and make trading decisions.
Copy Trading
Correlation
General Finance
A statistical measure of how closely two assets or securities move in relation to one another.
General Finance
CPI (Consumer Price Index)
Markets
An economic indicator that measures changes in the price of goods and services over time.
Markets
Cryptocurrency
Cryptocurrencies
An ungoverned digital currency encrypted using blockchain technology for internet transactions.
Cryptocurrencies
Currency pair
Forex
The expression of the value of one currency in relation to another.
Forex
Currency risk
Forex
The potential loss that can occur from changes in exchange rates when investing in foreign currencies.
Forex
Current assets
Manual Trading
Assets that can be converted into cash within one year.
Manual Trading
Current liabilities
Manual Trading
Debts that are due within one year.
Manual Trading
Custodian
Markets
A financial institution that holds and safeguards assets on behalf of investors.
Markets
Daily chart
Technical Analysis
A chart that displays the price movements of a security or asset over a single day.
Technical Analysis
Dark cloud cover
Candlesticks
A candlestick pattern that signals a potential reversal in an uptrend.
Candlesticks
Dark pool
Markets
A private trading venue that allows investors to buy and sell securities without the transactions being publicly visible.
Markets
Day order
Manual Trading
An order that is valid only for the trading day on which it was placed.
Manual Trading
Day trader
Manual Trading
A type of trader who trades on a daily basis with the goal of profiting from short-term price movements.
Manual Trading
Dead cat bounce
Technical Analysis
A type of Sucker Rally, taking formation of a brief and sharp price recovery, followed by a return to the downtrend.
Technical Analysis
Debt ceiling
Markets
The legal limit on the amount of debt that a government can issue.
Markets
Debt security
Markets
A financial instrument that represents a company or government's debt, such as a bond or note.
Markets
Debt-to-equity ratio
General Finance
A financial ratio that measures a company's debt relative to its equity.
General Finance
Deflation
Markets
Deflation is the decreasing percentage of prices for goods and services over time, which can increase the purchasing power of money, but can also cause economic problems like unemployment and slow growth due to reduced demand.
Markets
Delta
Technical Analysis
An indicator of how sensitive an option's price reacts to changes in an underlying asset's price.
Technical Analysis
Depth of market (DOM)
Manual Trading
A trading tool that displays the current bids and offers for a particular security or asset.
Manual Trading
Derivative
Manual Trading
Financial contracts that allow traders to place trades without actually owning the asset while still profiting from price fluctuations.
Manual Trading
Dilution
General Finance
The reduction in a shareholder's percentage of ownership in a company due to the issuance of new shares.
General Finance
Direct market access (DMA)
Manual Trading
A trading system that lets traders access financial markets directly, providing real-time data and flexibility.
Manual Trading
Diversification
Strategies
A golden rule in trading practice: to spread your capital across different asset classes, industries, or geographic regions to minimise the impact of one asset's performance on your overall portfolio.
Strategies
Dividend
General Finance
A payment made by a company to its shareholders, typically from the company's profits.
General Finance
Dividend aristocrats
Fundamental Analysis
Companies that have consistently increased their dividend payments for at least 25 consecutive years.
Fundamental Analysis
Dividend yield
General Finance
A financial ratio that measures the dividend payments made by a company relative to its share price.
General Finance
Doji
Candlesticks
A doji is a candlestick pattern with opening and closing prices nearly identical, forming a line shape, signaling a balanced market with equal buying and selling pressures.
Candlesticks
Dow Jones Industrial Average (DJIA)
Indices
One of the oldest indices that monitors the performance of 30 blue-chip companies in the US. It is a price-weighted index, commonly referred to as "the Dow".
Indices
Dragonfly doji
Candlesticks
A candlestick pattern that forms when there is a significant decline in the asset's price, signifying short-term selling pressure, followed by a rebound back up to the opening price within the same trading period.
Candlesticks
Drawdown
Technical Analysis
The peak-to-trough decline in the value of an investment or trading account.
Technical Analysis
Due diligence
General Finance
The process of investigating and analysing a company or investment opportunity before making a decision to invest.
General Finance
Duration
Bonds
The measure of a bond's sensitivity to changes in interest rates.
Bonds
E-mini
Manual Trading
A smaller version of a futures contract, traded on an electronic exchange.
Manual Trading
Early exercise
Manual Trading
The practice of exercising an option before its expiration date.
Manual Trading
Earnings call
Markets
A conference held by companies to address their earnings report results, attended by analysts, investors and the media.
Markets
Earnings per Share (EPS)
General Finance
A profitability ratio calculated by dividing a company's net income by its outstanding shares. It reveals the profit attributed to each stock share, with higher EPS making the stock more appealing to investors.
General Finance
Earnings reports
Markets
Financial statements released by corporations quarterly or annually.
Markets
Economic Calendar
Markets
A tool that reports a country's economic highlights and data releases, such as GDP, employment figures and central bank meeting outcomes.
Markets
Elliott Wave Theory
Technical Analysis
Elliott Wave Theory suggests that financial markets follow a 5-3 wave pattern: five waves in the trend's direction and three waves in the opposite direction.
Technical Analysis
End of day order
Manual Trading
An order to buy or sell a security that will be executed at the end of the trading day.
Manual Trading
Enterprise value (EV)
General Finance
A financial metric that measures a company's total value, including its debt and equity.
General Finance
Equity
General Finance
The ownership interest in a company, represented by the value of the company's assets minus its liabilities.
General Finance
European central bank (ECB)
Markets
The central bank responsible for monetary policy in the eurozone.
Markets
Eurozone
Markets
The group of European Union countries that use Euro as their common currency.
Markets
Ex-dividend
Manual Trading
The period of time after a dividend has been declared but before it is paid, during which the stock price may adjust.
Manual Trading
Exchange
Markets
An open, centralised, and regulated platform where financial instruments are traded fairly, orderly and efficiently.
Markets
Exchange rate
Forex
The ratio at which one currency is exchanged for another, used mainly in the foreign exchange market. For instance, USD 1 is equivalent to or is able to purchase GBP 0.85.
Forex
Exchange-traded fund (ETF)
Manual Trading
A type of investment fund that trades like a stock on a stock exchange.
Manual Trading
Execution
Manual Trading
The process of completing a trade or order in the market.
Manual Trading
Execution only
Markets
A type of brokerage service that only executes trades on behalf of clients, without providing investment advice.
Markets
Exotic currency
Forex
A currency that is not commonly traded in the foreign exchange market, such as the Thai Baht or the South African Rand.
Forex
Expert advisor
Markets
A software that uses algorithms to monitor the markets, provide signals, and automatically execute trades on behalf of traders.
Markets
Exponential moving average (EMA)
Technical Analysis
A technical indicator that gives more weight to recent price data than older data.
Technical Analysis
Face value
General Finance
The nominal or stated value of a security, such as a bond or stock.
General Finance
Failure swing
Technical Analysis
A technical indicator in which the price attempts to break a previous high or low but fails to do so.
Technical Analysis
Fair value
Fundamental Analysis
The estimated value of an asset based on its market price, financial statements and other relevant factors.
Fundamental Analysis
Fakeout
Technical Analysis
A false breakout where the price briefly moves beyond a key level but then quickly reverses its course.
Technical Analysis
Fibonacci
Technical Analysis
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.
Technical Analysis
Fill
Manual Trading
A 'fill' signifies the successful execution of an order after matching with a corresponding party - it is the fulfilment of an asset to be purchased or sold.
Manual Trading
Fill or kill (FOK)
Manual Trading
An order type that requires a trade to be executed immediately and completely, or else cancelled.
Manual Trading
Financial market
Markets
Any marketplace where asset or security trading takes place, including forex, shares, cryptocurrencies, indices, commodities and others.
Markets
Financial risk
General Finance
The risk of loss due to changes in market conditions, interest rates, credit ratings or other financial factors.
General Finance
Fiscal year
General Finance
A 12-month period that a company or organisation uses for financial and accounting purposes, which may or may not coincide with the calendar year.
General Finance
Fisher effect
Markets
A theory that suggests interest rate spikes will lead directly to increased inflation.
Markets
Fixed exchange rate
Forex
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.
Forex
Fixed income
General Finance
Investments that pay a fixed rate of return, such as bonds or CDs.
General Finance
Float
General Finance
When funds are transferred from one account to another, it is "floating" till the transfer is complete. During this stage, the amount can be seen in both accounts.
General Finance
Floor trader
Markets
A trader who works on the floor of an exchange, executing trades on behalf of clients or for their own account.
Markets
FOMC meeting
Markets
A meeting of the Federal Open Market Committee, which sets monetary policies for the Federal Reserve.
Markets
Foreign exchange (forex)
Forex
A decentralised, over-the-counter (OTC) market where global currencies are traded. It is the world's largest and most liquid financial market.
Forex
Forward contract
Markets
A type of futures contract, customised by two individual parties as opposed to a fixed futures contract determined by exchanges.
Markets
Fractal
Technical Analysis
A mathematical pattern that repeats itself at different scales, used in technical analysis to identify trends and support or resistance levels.
Technical Analysis
Free float
Markets
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.
Markets
Front-running
General Finance
The unethical practice of buying or selling a security based on knowledge of a pending transaction by a third party.
General Finance
FTSE 100
Indices
The Financial Times Stock Exchange 100 is a market capitalisation-weighted index that tracks London's top 100 blue-chip companies.
Indices
Fund manager
Markets
A professional who manages a portfolio of investments on behalf of clients, such as mutual funds or hedge funds.
Markets
Fundamental analysis
Fundamental Analysis
An approach to analysing the price of an asset or market that focuses on the underlying economic and organisational factors.
Fundamental Analysis
Fungibility
General Finance
The ease at which one asset can be swapped for another without losing value, such as trading one $10 bill for ten $1 bills.
General Finance
Futures
General Finance
When a buyer and seller agree to make a transaction at a predetermined future date and at a set price, they have entered a futures contract.
General Finance
Gap Risk
Markets
The risk of a sudden price movement that occurs when the market opens after a weekend or holiday.
Markets
Going long
Manual Trading
The act of buying a security with the belief that it will rise in value over time.
Manual Trading
Good 'til cancelled (GTC)
Manual Trading
An order type that remains in effect until it is filled or cancelled by the trader.
Manual Trading
Gravestone Doji
Technical Analysis
A candlestick pattern showing a price increase followed by a reversal back to the opening price within the same trading period, suggesting short-term buying followed by sellers pushing the price lower.
Technical Analysis
Green investing
Strategies
Green investing involves investing in environmentally sustainable organisations or projects.
Strategies
Green-chip stocks
Share CFDs
A type of stock that comprises publicly traded companies that emphasise on environmentally-friendly and sustainable practices.
Share CFDs
Grid
Strategies
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.
Strategies
Gross domestic product (GDP)
Markets
The total value of all goods and services produced within a country's borders during a specific period, usually measured on an annual basis.
Markets
Growth stock
Share CFDs
A stock of a company that is expected to grow at a rate faster than the overall market.
Share CFDs
GTC
Manual Trading
Good 'Til Cancelled. An order type that remains in effect until it is filled or cancelled by the trader.
Manual Trading
Hammer Candlestick
Candlesticks
A bullish indicator that signals strong buying pressure, initially pushing the price down but closing near the high.
Candlesticks
Hanging Man Candlestick
Candlesticks
A bearish indicator that signals strong selling pressure, initially pushing the price up but closing near the low.
Candlesticks
Harami
Candlesticks
A candlestick pattern that forms when a small candle is contained within the range of the previous candle, indicating a potential trend reversal.
Candlesticks
Harmonic price patterns
Technical Analysis
Harmonic price patterns are geometric patterns based on Fibonacci ratios like ABCD, butterfly, crab, and shark patterns.
Technical Analysis
Head and shoulders
Technical Analysis
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.
Technical Analysis
Head fake
Technical Analysis
A false signal that leads traders to believe that a particular trend is emerging in the market.
Technical Analysis
Hedge
Strategies
Hedging is a risk management strategy that involves adjusting asset positions to minimise potential losses from price fluctuations, often using futures contracts, options, or other financial instruments.
Strategies
Hedge fund
General Finance
An advanced, private investment fund managed by professionals for wealthy investors, aiming to profit in any market condition, typically with a minimum one-year holding period.
General Finance
Hedge ratio
General Finance
A hedge ratio measures risk exposure in a position, with 0% indicating an unhedged position and a ratio between 1-100% representing a hedged one, calculated as:
Hedge Ratio = Value of the Hedge Position / Value of the Total Exposure
General Finance
Heikin-Ashi
Candlesticks
A candlestick chart that minimises price noise, using colorless candlesticks with wicks for selling pressure in uptrends and colored candlesticks with tails for buying pressure in downtrends.
Candlesticks
High-frequency trading (HFT)
Strategies
A type of trading that uses powerful computers and algorithms to execute trades at very high speeds, often in milliseconds or less.
Strategies
Historical pricing
Manual Trading
The record of buying and selling prices of a product, aiding analysts and investors in assessing its potential performance.
Manual Trading
Historical volatility
Manual Trading
A measure of the variability of a security's price over a specific period of time, based on past price movements.
Manual Trading
Holder
Share CFDs
The owner of a security, such as a stock or bond.
Share CFDs
Horizontal channel
General Finance
A trading range that occurs when the price of a security moves within a defined range over an extended period of time.
General Finance
Horizontal spread
General Finance
A type of options spread that involves buying and selling options with the same expiration date but different strike prices.
General Finance
Hot IPO
General Finance
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.
General Finance
Housing starts
General Finance
A monthly report that measures the number of new residential construction projects started during a specific period.
General Finance
Hurdle rate
General Finance
The minimum rate of return that a hedge fund or other investments must achieve to justify the fees charged to clients.
General Finance
Hybrid security
General Finance
A financial instrument that combines the features of both debt and equity securities.
General Finance
Ichimoku Cloud
Technical Analysis
An advanced technical analysis technique used to identify support and resistance trends along five lines, guiding buy and sell decisions.
Technical Analysis
Implied volatility
General Finance
A measure of the expected volatility of an underlying asset based on the prices of its options contracts.
General Finance
In-the-money
General Finance
Refers to an options contract that would be profitable if it were exercised immediately.
General Finance
Income Return
General Finance
The return on an investment derived from the income it generates, such as dividends or interest.
General Finance
Indices
Indices
A collection of stocks that can be traded as one product through ETFs, futures contracts and more.
Indices
Inflation
Markets
The increasing percentage of prices for goods and services over time, reducing the purchasing power of currency.
Markets
Initial margin
Manual Trading
The minimum amount of money or collateral required to open a position.
Manual Trading
Initial Public Offering (IPO)
General Finance
The first time a private company puts its shares up for sale, also known as "going public".
General Finance
Inside bar
Candlesticks
A candlestick pattern that forms when the high and low of a bar are within the high and low of the previous bar.
Candlesticks
Institutional investor
Markets
A large financial organisation, such as a pension fund, insurance company, or mutual fund, that invests money on behalf of its clients.
Markets
Interbank rates
Markets
The interest rates at which banks lend to and borrow from each other.
Markets
Interest rate
General Finance
Interest rates, expressed as a percentage of the loan amount, represent the cost of borrowing. They can be fixed (unchanging) or variable (responsive to market conditions) and impact borrowing and investment returns.
General Finance
International Monetary Fund (IMF)
Fundamental Analysis
An organisation that promotes international monetary cooperation and provides advice, loans, and technical assistance to member countries.
Fundamental Analysis
Intraday
General Finance
Trading activities that occur within the same trading day.
General Finance
Introducing broker (IB)
Markets
A person or entity that refers clients to a brokerage firm and receives a commission for doing so.
Markets
Inverse correlation
General Finance
A relationship between two products in which they move in opposite directions.
General Finance
Investment fund
Strategies
A pool of money managed by an investment company that is used to purchase a diverse portfolio of products.
Strategies
Investment grade
Bonds
A rating given to bonds that are considered to be of low risk and high quality by credit rating agencies.
Bonds
Iron Butterfly
Strategies
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.
Strategies
ISM manufacturing index
General Finance
A monthly economic report that measures the activity level of the manufacturing sector in the US.
General Finance
J Curve theory
Forex
The idea that a country's trade balance will initially worsen after a currency devaluation before improving in the long run.
Forex
Joint venture
General Finance
A business arrangement where two or more parties agree to pool their resources to achieve a specific goal.
General Finance
Journal
Manual Trading
A record of all transactions that occur in a trading account.
Manual Trading
JPY
Forex
The currency code for Japanese Yen.
Forex
Judgmental forecasting
Fundamental Analysis
A qualitative forecasting technique that relies on the knowledge and expertise of individuals to predict future events.
Fundamental Analysis
Jump diffusion
Strategies
A type of financial model that incorporates both continuous and discontinuous price movements.
Strategies
Just in time (JIT)
General Finance
A manufacturing strategy that aims to reduce inventory levels and increase efficiency.
General Finance
Keiretsu
Markets
A type of Japanese business conglomerate that includes several companies with interlocking relationships.
Markets
Key currency
Forex
A major currency that is widely used as a reserve currency and an international trade.
Forex
Kicker pattern
Technical Analysis
A candlestick pattern that signals a reversal in trend.
Technical Analysis
Kiosk
Forex
A small physical location where currency exchange services are provided.
Forex
Kiwi
Forex
Slang term for the New Zealand dollar (NZD).
Forex
Knock-in barrier option
Manual Trading
A type of option that only becomes active when the underlying asset reaches a certain price level.
Manual Trading
Knock-in option
Manual Trading
A type of option that becomes active only when a certain price level is reached.
Manual Trading
Knock-out option
Manual Trading
A type of option that becomes invalid when a certain price level is reached.
Manual Trading
Know your customer (KYC)
Fundamental Analysis
The process by which financial institutions verify the identity of their clients.
Fundamental Analysis
Known-unknowns
Fundamental Analysis
Risks or uncertainties that are recognised but cannot be quantified or accurately predicted.
Fundamental Analysis
Kondratieff wave
Technical Analysis
A long-term economic cycle lasting approximately 50-60 years.
Technical Analysis
Krone
Forex
The currency of Denmark (DKK) and Norway (NOK).
Forex
Ladder strategy
Strategies
A trading strategy that involves buying and selling financial instruments at different price levels to capture gains or losses.
Strategies
Last look
Markets
A practice in which liquidity providers have the opportunity to reject trades after receiving them from market participants.
Markets
Leading indicator
Fundamental Analysis
An economic indicator that provides insight into future economic activity.
Fundamental Analysis
Leverage
Manual Trading
A tool used to amplify purchasing power through borrowed capital, measured in ratio i.e. 500:1.
Manual Trading
LIBOR
Markets
Short for London Interbank Offered Rate, a benchmark interest rate used in financial markets.
Markets
Limit order
Manual Trading
An order placed at a desired price instead of at a current price.
Manual Trading
Liquidity
General Finance
Liquidity is an asset's ease of conversion into cash without losing value, assessed by metrics like bid-ask spread and trade volume.
General Finance
Liquidity provider
Markets
A market participant that provides liquidity by offering to buy and sell financial instruments.
Markets
Lock limit
Manual Trading
A price limit beyond which trading is not allowed for a product, typically exercised in the futures market.
Manual Trading
London session
Markets
The time period during which the London financial markets are open for trading.
Markets
Long-legged doji
Candlesticks
A rare candlestick pattern showing a balance between buying and selling pressure in the same trading period, appearing as a candlestick with a small body and equally long shadows.
Candlesticks
Lot
Manual Trading
A measurement used to count the size of a single trade. Typically, investors start trading with 1 lot.
Manual Trading
Lot-based commission
Markets
A fee charged by brokers for facilitating a trade that is based on the lot size.
Markets
Major pairs
Forex
Forex pairs that include major currencies, including EUR/USD, USD/JPY, GBP/USD, and USD/CHF.
Forex
Margin
Manual Trading
Margin is the initial deposit that a trader makes to a broker to cover credit risks and maintain a leveraged position. This is also known as collateral.
Manual Trading
Margin call
Manual Trading
A request by a brokerage to inform a trader to make an additional deposit in order to meet margin requirements.
Manual Trading
Market crash
Markets
An abrupt and substantial decline in the value of financial assets, typically accompanied by heightened volatility and increased selling.
Markets
Market maker
Markets
A financial institution that provides liquidity by buying and selling financial instruments.
Markets
Market order
Manual Trading
The basic order that involves buying or selling a financial asset at the current market price with immediate effect.
Manual Trading
Market risk
Manual Trading
The risk of loss arising from adverse movements in market prices.
Manual Trading
Market sentiment
Fundamental Analysis
The overall perception of market participants towards an asset or market as a whole, which directly impacts price fluctuations.
Fundamental Analysis
Micro lot
Manual Trading
A lot size in forex trading that is equal to 1,000 units of the base currency.
Manual Trading
Mid-price
Manual Trading
The price halfway between the bid and ask prices of a product.
Manual Trading
Mini lot
Manual Trading
A lot size in forex trading that is equal to 10,000 units of the base currency.
Manual Trading
Momentum trading
Strategies
A trading strategy that involves taking positions based on the latest market trends i.e. buying when there's an upward trend or selling when there's a downward trend.
Strategies
Monetary base
Forex
The total amount of currency in circulation in an economy.
Forex
Monetary policy
Markets
The actions taken by a central bank to manage the supply of money and interest rates in an economy.
Markets
Monetary union
Markets
A group of countries that share a common currency and monetary policy.
Markets
Money supply
Markets
The total amount of money in circulation in an economy.
Markets
Monthly return
Manual Trading
The difference between a user's net worth at the beginning and end of the month, accounting for any withdrawals or deposits made during that time.
Manual Trading
Moving average
Technical Analysis
A technical indicator showing price trends based on historical data, including simple moving averages (SMAs) and exponential moving averages (EMAs).
Technical Analysis
Moving average convergence divergence (MACD)
Technical Analysis
A technical tool calculated by subtracting a 26-day exponential moving average (EMA) from a 12-day EMA, resulting in a signal line.
Technical Analysis
Multiple-timeframe analysis
Technical Analysis
An assessment of a product's price movement across different time frames, such as weekly, daily, hourly and 1/4 hourly.
Technical Analysis
Mutual fund
Strategies
A mutual fund is a shared portfolio funded by multiple individuals and managed by a professional, with profits equally distributed.
Strategies
Naked position
Manual Trading
A position in which a trader holds an order without owning an offsetting position to mitigate risk.
Manual Trading
Narrow market
Markets
A market in which trading activity is limited and price movements are small.
Markets
Narrow spread
Manual Trading
A small difference between the bid and ask prices of a product.
Manual Trading
Negative carry pair
Forex
A forex pair in which the interest rate on the base currency is lower than the interest rate on the quote currency.
Forex
Net position
Manual Trading
The value of a position held by a trader after subtracting the initial cost of setting up that position.
Manual Trading
Netting
Strategies
The process of offsetting multiple trades or positions to reduce risk exposure.
Strategies
Neutral
Markets
A situation in which a product or market is neither bullish nor bearish.
Markets
New York session
Markets
The time period during which the New York financial markets are open for trading.
Markets
New York Stock Exchange (NYSE)
Share CFDs
The largest stock exchange in the world by market capitalisation.
Share CFDs
NIKKEI 225
Indices
Nikkei 225 is a price-weighted index that tracks the performaces of Japan's top 225 blue-chip companies.
Indices
Noise
General Finance
Random fluctuations in price that are not driven by underlying economic fundamentals.
General Finance
NOK
Forex
Abbreviation for the Norwegian Krone, the official currency of Norway.
Forex
Nominal interest rate
General Finance
The rate of interest on a product or loan without taking into account inflation or other factors.
General Finance
Non-deliverable forward
General Finance
A type of forward contract that is settled in cash rather than by physical delivery of the underlying asset.
General Finance
Non-directional trading
Strategies
A trading strategy that seeks to profit from market volatility rather than directional price movements.
Strategies
Non-market risk
Fundamental Analysis
The risk of loss arising from factors outside of market movements, such as regulatory changes or geopolitical events.
Fundamental Analysis
Nonfarm payroll (NFP)
Fundamental Analysis
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.
Fundamental Analysis
Notional value
General Finance
The value of a product based on the underlying asset or assets.
General Finance
NZD
Forex
The official currency of New Zealand (NZD).
Forex
Offer
Manual Trading
The price at which a seller is willing to sell a product.
Manual Trading
Offshore
Manual Trading
A term used to describe financial institutions or investments that are located outside the investor's home country.
Manual Trading
One cancels the other (OCO)
Manual Trading
An order type that allows traders to place two orders simultaneously, with one being cancelled if the other is executed.
Manual Trading
Open interest
General Finance
The total number of outstanding contracts for a particular product.
General Finance
Open position
Manual Trading
An order that has been placed and is actively holding the position.
Manual Trading
Options
Manual Trading
In options contracts, the seller sets the strike price of an asset, while the buyer may choose to order the asset at that price point before its expiration.
Manual Trading
Order
Manual Trading
A call to buy or sell an asset at a particular price point or within a specific range. Orders can be placed via brokers, dealers, exchanges or online platforms.
Manual Trading
Order type
Manual Trading
The classification of an order based on its execution instructions, such as market order, limit order or stop order.
Manual Trading
Oscillator
Technical Analysis
A technical indicator that measures the momentum of price movements.
Technical Analysis
Out-of-the-money
General Finance
An options contract that would not be profitable if it were exercised immediately.
General Finance
Outright forward contract
Manual Trading
A customised futures contract determined by two individual parties, as opposed to a fixed cutures contract determined by exchanges.
Manual Trading
Outright option contract
Manual Trading
A single-purchase options contract, as opposed to a multi-leg options contract.
Manual Trading
Over-the-counter
Markets
Over-the-counter (OTC) is a decentralised marketplace for niche products not found on larger exchanges, using a broker-dealer network for trading.
Markets
Overbought
General Finance
A condition in which a product has been bought to the point where its price is considered too high and may be due for a correction or decline.
General Finance
Overexposure
Manual Trading
A situation where a trader allocates a large amount of their capital to one product, thereby overexposing their portfolio to the risk of loss should the product perform badly.
Manual Trading
Overnight position
Manual Trading
A position that is held open overnight and subject to rollover fees.
Manual Trading
Overnight rate
General Finance
The interest rate applied to interbank borrowing for a short-term period, typically overnight.
General Finance
Oversold
General Finance
A condition in which a product has been sold to the point where its price is considered too low and may be due for a rebound.
General Finance
Paper trading
Manual Trading
A trading simulation that offers beginners the chance to trade without risking real money.
Manual Trading
Pending order
Manual Trading
An instruction to buy or sell a product at a specified price in the future.
Manual Trading
Pip
Manual Trading
The smallest unit of measurement for a currency pair's price movement.
Manual Trading
Pipette
Manual Trading
A fractional pip used to quote currency pairs with greater precision.
Manual Trading
Pivot point
Technical Analysis
A technical indicator used to identify potential support and resistance levels.
Technical Analysis
Portfolio
General Finance
A compilation of investments made by a trader.
General Finance
Portfolio manager
General Finance
An investment professional responsible for managing a portfolio on behalf of clients.
General Finance
Position
Manual Trading
The direction of a trade made: long means betting on a price increase, while short means betting on a price decrease.
Manual Trading
Pre-market trading
Markets
The 1.5 hours prior to market open, when investors and traders rigorously observe market movements and sentiment.
Markets
Price action
General Finance
The movement of a product's price over time, often analysed using technical analysis.
General Finance
Price discovery
General Finance
The process of determining the spot price of a product.
General Finance
Price-to-earnings (P/E) ratio
Share CFDs
The measurement of a company's financial health and future growth potential by dividing its stock price by earnings per share (EPS).
Share CFDs
Primary market
Markets
The market in which newly issued securities are sold for the first time.
Markets
Profit and loss (P&L)
General Finance
A statement that presents the earnings, expenditures, and net income of an investment, providing an overview of its financial state.
General Finance
Projections
Strategies
Predictions or forecasting of the performance of an asset, market or business.
Strategies
Publicly traded
Share CFDs
A company whose shares are available for purchase on a stock exchange.
Share CFDs
Pullback
Technical Analysis
A temporary reversal following a surge.
Technical Analysis
Purchasing managers' index (PMI)
Fundamental Analysis
A financial metric derived from a survey completed by purchasing managers in the manufacturing sector.
Fundamental Analysis
Put option
Manual Trading
An option that gives the holder the right, but not the obligation, to sell an underlying asset at a specific price.
Manual Trading
Pyramiding
Strategies
A trading strategy in which a trader adds to a winning position as it moves in their favour.
Strategies
Quality spread differential (QSD)
Bonds
The difference in yield between two fixed-income securities of different credit quality.
Bonds
Quantitative easing (QE)
Markets
A monetary policy in which a central bank buys financial assets in order to increase the money supply and stimulate economic growth.
Markets
Quantity
Manual Trading
The amount of a product being bought or sold in a transaction, more commonly known as a lot.
Manual Trading
Quanto option
Manual Trading
An option that has been adjusted to account for currency exchange rate movements.
Manual Trading
Quarterly report
Fundamental Analysis
A report released by a publicly traded company every three months, detailing its financial performance over the past quarter.
Fundamental Analysis
Quasi money
Markets
Assets that can be easily converted into cash but are not considered legal tender, such as money market funds or time deposits.
Markets
Quick ratio
Fundamental Analysis
A financial ratio used to measure a company's ability to pay its short-term debts with its most liquid assets.
Fundamental Analysis
Quiescent market
Markets
A market that is experiencing very little activity or volatility.
Markets
Quiet period
Share CFDs
A period of time before the release of a company's earnings report during which staff are not allowed to discuss the company's financial performance.
Share CFDs
Quietly bearish
Markets
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.
Markets
Quorum
General Finance
The minimum number of members required to be present at a meeting in order for decisions to be made.
General Finance
Quota
Manual Trading
A limit on the amount that a product can be traded.
Manual Trading
Quotation
General Finance
The process of providing a price quote for a product.
General Finance
Quote
Manual Trading
The current price at which a product is available for trade.
Manual Trading
Quote currency
Forex
The second currency in a currency pair, used to quote the price of the base currency.
Forex
Quote currency pair
Forex
A currency pair in which the quote currency is the same as the account currency.
Forex
Quote stuffing
Strategies
A practice in which traders flood an exchange with a large number of orders to create false market activity and manipulate prices.
Strategies
Quote-driven market
Markets
A market in which prices are set by market makers who provide quotes for products.
Markets
Rally
Manual Trading
A continuous upward movement in asset price.
Manual Trading
Range
Manual Trading
The difference between the highest and lowest price of a product over a given time period.
Manual Trading
Range trading
Strategies
A trading strategy wherein a trader purchases the asset when it reaches the lower limit of its trading range and sells it when it reaches the upper limit.
Strategies
Range-bound market
Markets
When an asset's price remains confined within a specific range, lacking noticeable trends or momentum.
Markets
Rate hike
Fundamental Analysis
An increase in interest rates by a central bank, which can cause the currency of the country to appreciate.
Fundamental Analysis
Real effective exchange rate (REER)
Forex
A weighted average of a currency's exchange rate relative to other currencies, adjusted for inflation.
Forex
Relative Strength Index (RSI)
Technical Analysis
A technical indicator, used to analyse the momentum of the price of a security.
Technical Analysis
Resistance
Technical Analysis
A level on a price chart at which selling pressure is expected to outweigh buying pressure, resulting in a potential reversal in price movement.
Technical Analysis
Retail trader
Markets
A trader who uses their own funds to participate in the markets, rather than on behalf of an institution.
Markets
Retracement
Technical Analysis
A temporary reversal in the direction of a product's price movement within a larger trend.
Technical Analysis
Return
General Finance
The overall gains from an investment.
General Finance
Return on equity (ROE)
Share CFDs
A financial ratio that evaluates the profitability of a company based on the equity invested in it.
Share CFDs
Revaluation
Forex
A change in the exchange rate of a currency relative to other currencies or a benchmark.
Forex
Reversal
Technical Analysis
A change in the direction of a product's price movement.
Technical Analysis
Rho
Technical Analysis
An indicator of how an option's price responds to changes in the interest rate.
Technical Analysis
Risk
Strategies
The potential for loss in a trade or investment.
Strategies
Risk appetite
Strategies
The level of risk that a trader is willing to take on.
Strategies
Risk management
Strategies
Addressing, reviewing and managing the potential risks of a trade in order to protect the overall portfolio.
Strategies
Risk score
Strategies
The level of risk associated with trading, ranging from 0 (low risk) to 10 (high risk).
Strategies
Risk-Reward Ratio
Strategies
A measure which assesses the potential ROI compared to the associated risk.
Strategies
RMB
Forex
The Chinese yuan, also known as renminbi.
Forex
Rollover
Manual Trading
A rollover happens when the maturity date of a financial instrument has been extended.
Manual Trading
Round number
General Finance
A price that ends with zero, such as $1.00 or €100.00.
General Finance
S&P 500
Indices
Standard and Poor's 500 is a market capitalisation-weighted index that tracks the performance of US's top 500 companies.
Indices
Safe haven
Strategies
A product that is considered a relatively safe investment during times of market turbulence.
Strategies
Scalp trading
Strategies
A rapid trading strategy that involves swiftly opening and closing positions, profiting from small movements.
Strategies
Sell
Manual Trading
Ordering an asset with the intention to buy it back at a lower price in the future, thereby earning a profit from the difference, also known as opening a short position.
Manual Trading
Sell limit order
Manual Trading
An order placed to automatically sell a product at a specified price level or higher.
Manual Trading
Shadow
Candlesticks
A line indicator located both above and below a candlestick, representing the highest and lowest prices of a security during a trading period.
Candlesticks
Short selling
Manual Trading
The act of selling a security with the intention to repurchase it at a lower price later.
Manual Trading
Signal Provider
Copy Trading
An experienced or professional trader who makes their portfolio available for other traders to replicate in exchange for a commission.
Copy Trading
Slippage
Manual Trading
The variation between the anticipated trade price and the actual executed price, commonly occuring in forex and futures markets.
Manual Trading
Speculation
Strategies
Attempting to profit from volatility in the markets, focusing on short-term profits with the lack of risk mitigation and interest in underlying fundamentals.
Strategies
Spot
Manual Trading
The current price that an asset can be bought or sold, and immediately delivered.
Manual Trading
Spread
Manual Trading
The gap between the bid price and ask price of a security or asset.
Manual Trading
Spread betting
Strategies
A type of trading in which the trader bets on the direction of a financial instrument's price movement.
Strategies
Stock splits
Strategies
The process in which a corporation increases its outstanding shares by releasing more shares to existing shareholders.
Strategies
Stock symbol
Share CFDs
A code consisting of letters (and sometimes numbers) representing a company's stock on an exchange.
Share CFDs
Stocks
Share CFDs
A contract representing ownership of a company, issued in portions, granting the owner a share in profits.
Share CFDs
Stop Loss / Take Profit
Manual Trading
A function that allows traders to automatically close a position at a predetermined price point, to help minimise risk and maximise profit.
Manual Trading
Stop Loss Value
Manual Trading
A predetermined value for a trade to be automatically closed once the price limit is triggered. This is to ensure that traders do not suffer further losses.
Manual Trading
Straddle and strangle
Strategies
An options strategy that investors use to capitalise on significant price movements of an asset.
Strategies
Strategy
Strategies
Setting trading goals and employing methods to achieve those goals using tools, knowledge and experience.
Strategies
Sucker rally
Manual Trading
A short-term spike in prices that eventually meets a drastic decline.
Manual Trading
Support and resistance
Technical Analysis
Key price points that provide indications for an asset's future price movements.
Technical Analysis
Swap rates
Manual Trading
The exchange of a series of fixed or floating interest rate payments over a specific duration.
Manual Trading
Swing trading
Strategies
A trading strategy that involves holding positions for several days to several weeks in order to capture larger price movements.
Strategies
Technical analysis
Technical Analysis
A type of analysis that assesses a trade based on market trends and patterns, with the aid of technical charts and indicators to forecast future price movements.
Technical Analysis
Tick
Candlesticks
The smallest possible price movement of a financial instrument.
Candlesticks
Timeframe
Candlesticks
The length of time represented by each candle or bar on a price chart.
Candlesticks
Trade balance
Fundamental Analysis
The difference between a country's exports and imports of goods and services.
Fundamental Analysis
Trading psychology
Manual Trading
The mental and emotional aspects of trading, including discipline, patience, and emotional control.
Manual Trading
Trading range
Manual Trading
The period when an asset's price does not fluctuate much; a preferred "safe zone" for traders to open positions.
Manual Trading
Trading time zones
Markets
The period where markets open for trading activities, at different times around the world.
Markets
Trailing Stop Loss
Manual Trading
A stop loss order that adjusts as the price moves favourably. It rises with price increases but maintains its level during drops. If the price goes below the stop price, the position automatically closes, limiting losses.
Manual Trading
Trend
General Finance
The general direction in which the price of a financial instrument is moving over time.
General Finance
Trend line
Technical Analysis
A line drawn on a price chart connecting a series of higher lows or lower highs to indicate the direction of a trend.
Technical Analysis
Two-way quote
Manual Trading
A quote that includes both the bid and ask price of a product.
Manual Trading
U-shaped recovery
Fundamental Analysis
A sharp decline in the economy followed by a gradual, prolonged recovery.
Fundamental Analysis
Uncovered option
General Finance
A type of financial option in which the seller of the option does not hold a position in the underlying asset.
General Finance
Undercapitalisation
Manual Trading
A situation in which a trader does not have enough capital to cover potential losses.
Manual Trading
Underlying asset
Markets
The product that a derivative contract is based on; as the underlying asset moves, the derivative contract mirrors its price.
Markets
Unemployment rate
Fundamental Analysis
The percentage of the labour force that is currently unemployed, which speaks partly to the country's economic health.
Fundamental Analysis
Unilateral contract
Markets
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.
Markets
Unit of account
Fundamental Analysis
A monetary unit used to measure the value of goods and services in an economy.
Fundamental Analysis
Universal currency
Forex
A theoretical single currency that could be used globally to facilitate international trade and finance.
Forex
Unregulated market
Markets
A financial market that is not subject to government regulation or oversight.
Markets
Unwinding
Manual Trading
The process of closing out a position in a product.
Manual Trading
Up-and-in option
Manual Trading
A type of option that only becomes active if the underlying asset reaches a certain price level.
Manual Trading
Uptick
Technical Analysis
A price increase of a financial instrument from one trade to the next.
Technical Analysis
Uptrend
Technical Analysis
A market trend characterised by higher highs and higher lows in the price of a financial instrument.
Technical Analysis
USD
Forex
The currency code for the United States dollar, the world's most widely traded currency.
Forex
Valuation
General Finance
The process of determining the value of a product, company or asset.
General Finance
Value at risk (VaR)
General Finance
A measure of the maximum potential loss for a product over a specific time period and at a specific level of confidence.
General Finance
Value date
Manual Trading
The date on which a financial transaction is settled and funds are exchanged.
Manual Trading
Value investing
Strategies
A strategy of investing in undervalued companies in hopes of realising long-term gains as their value is recognised by the market.
Strategies
Venture capital
Share CFDs
Capital provided to new or growing companies by investors in exchange for an ownership stake.
Share CFDs
Venture debt
Share CFDs
Debt financing provided to early-stage or growing companies that do not yet have the creditworthiness to secure traditional loans.
Share CFDs
Venture exchange
Share CFDs
A stock exchange that specialises in listing and trading shares of early-stage or growing companies.
Share CFDs
Vertical spread
Strategies
A type of options trading strategy involving the simultaneous purchase and sale of options with different strike prices but the same expiration date.
Strategies
VIX
Indices
The ticker symbol for the CBOE Volatility Index, a popular measure of market volatility.
Indices
Volatility
Markets
When the market swings rapidly in either direction, causing sudden price movements and general uncertainty.
Markets
Volume
Manual Trading
The total number of units traded for a product during a specific time period.
Manual Trading
Voluntary disclosure
Fundamental Analysis
The act of a company voluntarily providing financial or other information to the public or to shareholders.
Fundamental Analysis
Vostro account
General Finance
A foreign currency account held by a bank on behalf of another bank.
General Finance
Wash sale
Strategies
A transaction in which a trader sells a financial instrument at a loss and then repurchases it shortly thereafter.
Strategies
Weighted moving average (WMA)
Technical Analysis
A type of moving average that assigns greater weight to more recent price data.
Technical Analysis
Whipsaw
Markets
A market condition in which a financial instrument rapidly fluctuates between bullish and bearish signals.
Markets
White label
Share CFDs
A product or service that is produced by one company but rebranded and sold by another company.
Share CFDs
Wide bid-ask spread
Manual Trading
The difference between the highest price a buyer is willing to pay for a product and the lowest price a seller is willing to accept.
Manual Trading
Wildcard option
Manual Trading
An option that can be exercised at any time during its lifetime.
Manual Trading
Wire transfer
General Finance
A method of electronically transferring funds from one bank account to another.
General Finance
Working capital
Fundamental Analysis
The capital available to a company for its day-to-day operations.
Fundamental Analysis
Yields
General Finance
An anticipated return-on-investment (ROI).
General Finance
ZAR
Forex
The currency code for the South African rand.
Forex
Zero interest rate policy (ZIRP)
Markets
A monetary policy in which a central bank sets interest rates at or near zero to stimulate economic growth.
Markets
Zero-coupon bond
Markets
A type of bond that pays no interest during its lifetime but is sold at a discount to its face value.
Markets
Zero-lag moving average
Technical Analysis
A technical indicator that attempts to eliminate lag in the calculation of moving averages.
Technical Analysis
Zero-sum game
Manual Trading
A situation in which one participant's gain is exactly balanced by another participant's loss.
Manual Trading
Zloty
Forex
The currency of Poland.
Forex
Zonal analysis
Technical Analysis
A technical analysis method that divides a price chart into zones based on historical price movements.
Technical Analysis
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