Glossary
Asset is a financial instrument or security that holds value and can be bought or sold in the market. Assets are classified into various types, including stocks, bonds, commodities (GOLD,… Read more
The Australian dollar (AUD) is the official currency of Australia, as well as several Pacific Island countries. In the world of trading and traders, the AUD is considered a major currency,… Read more
Bears are traders who bid on an asset price fall. Bears expect descending trends and mostly open short positions. The market is called a "bearish" or "bear" market when the quotes show a… Read more
The term "blue chips" refers to large, well-established companies that are considered to be leaders in their respective industries and characterized by stable dividend payments and good… Read more
Bollinger Bands are a technical analysis indicator that measures the volatility and potential price movement of an asset. The indicator consists of three lines: a moving average line… Read more
The British Pound, also known as Pound Sterling, is the official currency of the United Kingdom. It is symbolized by the currency code GBP and the symbol "£". The pound is one of the… Read more
A broker is an individual or a company that facilitates trading activities between buyers and sellers in various financial markets. In the context of trading, a broker acts as an… Read more
The Canadian dollar, also known as the "loonie," is the official currency of Canada. It is abbreviated as CAD and symbolized by the dollar sign "$" or "C$" to distinguish it from other… Read more
Candlesticks, also known as Japanese candlestick charts, are a popular charting tool used by traders to visualize the price movements of financial assets, such as stocks, forex pairs, and… Read more
Commodities are raw materials or primary products that can be bought and sold in global markets. They are often traded as futures contracts, which are agreements to buy or sell a commodity… Read more
Price movement with no clear trend direction when the asset price is confined within a narrow range. This type of dynamics is often called “flat movement” or “a flat.”… Read more
In the context of trading, the term "correction" refers to a temporary reversal of the prevailing trend in a financial market. It is often described as a price movement of at least 10% in… Read more
A currency is a system of money in general use within a particular country or region. It is a medium of exchange that facilitates transactions between individuals, businesses, and… Read more
A currency pair is a financial instrument that represents the exchange rate between two currencies in the foreign exchange market. The value of a currency pair is quoted as the price of… Read more
Current price refers to the most recent price at which an asset or security was traded in the market. It is also known as the market price or spot price.
The current price is determined… Read more
A debenture is a type of bond that is issued by a company or government as a means of borrowing money from investors. It is a long-term debt instrument that pays a fixed rate of interest… Read more
A derivative is a financial contract that derives its value from an underlying asset or group of assets, such as stocks, bonds, commodities, or currencies. The value of a derivative is… Read more
Divergence refers to a technical analysis tool that compares the movement of an asset's price with an indicator, such as a moving average or the Relative Strength Index (RSI), to identify… Read more
Dividends refer to a portion of a company's earnings that are paid out to its shareholders on a regular basis. They are typically distributed in cash, although some companies may offer… Read more
EBITA stands for "Earnings Before Interest, Taxes, and Amortization". It is a financial metric used to evaluate a company's profitability by measuring its earnings from core operations,… Read more
Equivalent Annual Cost (EAC) is a financial metric used to evaluate the total cost of an investment over its lifetime, expressed as an annualized cost. EAC takes into account the initial… Read more
The Euro is the official currency of the Eurozone, a group of 19 European Union countries that have adopted the currency as their sole legal tender. The Euro is managed by the European… Read more
Ex-Dividend refers to the period of time during which a stock trades without the value of its upcoming dividend payment. When a company declares a dividend, it typically sets a record… Read more
In derivatives trading, the term "expiration time" refers to the date and time at which a derivative contract or position expires. This can apply to a wide range of derivative products,… Read more
Fixed income refers to any type of investment that generates a predictable and stable stream of income over a set period of time. This can include investments such as bonds, certificates… Read more
Flat is a market condition where there is a lack of clear long-term direction in price movement. This can be characterized by a horizontal or sideways movement in price, with no clear… Read more
Flat market is a situation where the prices of securities, such as stocks or commodities, are not showing any significant upward or downward movement. In other words, the market is… Read more
Forex, short for foreign exchange, is a decentralized global market where currencies are traded. It's the largest and most liquid financial market in the world, with an estimated daily… Read more
Fundamental analysis is a method of evaluating the intrinsic value of a financial asset, such as a stock, bond, or currency, by analyzing its underlying economic and financial factors. The… Read more
Gross Domestic Product (GDP) is a widely used measure of the size and health of an economy. It represents the total value of goods and services produced within a country's borders over a… Read more
The Gini index, or Gini coefficient, is a measure of income inequality within a population. It is named after the Italian statistician Corrado Gini, who developed the concept in the early… Read more
Gross margin is a financial metric that measures the profitability of a company's products or services after accounting for the cost of goods sold (COGS). It represents the percentage of… Read more
In trading, the term "horizontal market" refers to a period of time when the price of an asset is trading within a relatively narrow range or channel, with little to no upward or downward… Read more
Hyperinflation is a severe and rapid increase in the general price level of goods and services within an economy, resulting in a sharp decline in the purchasing power of the local… Read more
Incremental cost refers to the additional cost incurred by a company or organization when producing one additional unit of a product or service. It is the difference in cost between… Read more
An indicator is a visual chart representation of price movement trends. These types of indicators are based on technical analysis and are often used to supplement price charts and identify… Read more
Inflation is a term used to describe the rate at which the general price level of goods and services in an economy increases over a period of time. It is measured by calculating the… Read more
Investments refer to the purchase of assets or financial products that are expected to generate income or increase in value over time. Investing involves putting money into something with… Read more
The Japanese yen (JPY) is the national currency of Japan and is considered one of the major currencies in the global foreign exchange market. The yen was officially adopted by the Japanese… Read more
A knock-in option is a type of financial derivative that grants the holder the right to execute a pre-determined transaction at a specific price level only if the underlying asset's price… Read more
Kurtosis is a statistical measure used in trading to assess the risk and potential profitability of an investment strategy. Specifically, it is used to measure the distribution of returns… Read more
Kyoto Protocol is an international agreement aimed at reducing greenhouse gas emissions and mitigating the impact of climate change. It was adopted in Kyoto, Japan, in 1997 and came into… Read more
Leverage is a term used in trading to describe the use of borrowed funds to increase the potential return on an investment. In other words, it allows traders to control a larger position… Read more
A Limited Liability Company (LLC) is a type of business structure that offers its owners protection from personal liability for the debts and obligations of the company. This means that… Read more
A Limited Partnership (LP) is a type of business entity in which two or more individuals or entities come together to form a partnership. In an LP, there are two types of partners: general… Read more
A line of credit (LOC) is a type of loan offered by a financial institution that allows a borrower to access funds up to a predetermined limit, as needed. Unlike a traditional loan, where… Read more
Liquidity refers to the ease with which an asset can be bought or sold without causing significant changes in its price. In the context of trading, liquidity is a crucial factor that… Read more
In trading, the term "long" refers to a position taken by an investor or trader who expects the price of an asset to increase. When an investor takes a long position, they buy an asset… Read more
A long position is a strategy where an investor buys a security with the expectation that its price will rise in the future. The investor will hold onto the security for an extended… Read more
A long-term trade is an investment strategy that involves buying and holding an asset for an extended period, typically longer than one year. This strategy is often used by investors who… Read more
Money management is the process of managing your trading capital in a way that maximizes profits while minimizing losses. It involves making strategic decisions about how much money to… Read more
The New Zealand dollar, commonly referred to as the "kiwi," is the official currency of New Zealand. It was first introduced in 1967 to replace the New Zealand pound and is one of the 10… Read more
An open position is a trade that has been entered into but not yet closed. This means that the trader has bought or sold an asset, such as a stock, currency, or commodity, and is still… Read more
An order is a request by a trader to buy or sell an asset, such as a stock, currency, or commodity, at a specified price or within a certain range of prices. Orders are a fundamental… Read more
"Overbought zone" in trading refers to a situation where an asset's price has risen significantly above its intrinsic value, usually due to high demand. This condition is identified using… Read more
The oversold zone is a situation where the price of an asset has declined significantly and is considered to be lower than its intrinsic value. This condition is usually a result of low… Read more
Pairs or asset pairs are a group of two financial instruments that are traded together as a single unit. The idea behind trading pairs is to take advantage of the price fluctuations… Read more
A price channel is a technical analysis tool used to identify the upper and lower boundaries of an asset's price movement over a specific time period. The price channel is created by… Read more
A rally is a rapid and sustained increase in the price of a financial instrument or security. A rally typically occurs after a period of declining prices, and is often driven by a positive… Read more
In trading, resistance refers to a price level at which an asset or security is likely to experience selling pressure and struggle to move higher. Resistance levels are typically seen as… Read more
A reversal refers to a change in the direction of an asset's price trend. A reversal occurs when a security that has been in an uptrend, or rising in price, begins to move lower, or when a… Read more
Scalping is a trading strategy in which traders attempt to profit from small price movements in a security by opening and closing positions within a short period of time, often just a few… Read more
A share, also known as a stock or equity, represents a unit of ownership in a corporation or company. When an individual purchases a share of stock, they are essentially buying a portion… Read more
A short position, also known as short selling or shorting, is the act of selling an asset that the seller does not currently own in the hopes of profiting from a price decline. This… Read more
Solvency ratio is a financial metric used in trading to measure a company's ability to meet its long-term financial obligations. Specifically, the solvency ratio measures a company's total… Read more
Speculation refers to a trading strategy in which an investor takes on risk in the hopes of making a profit. In particular, speculation involves buying and selling assets, such as stocks,… Read more
Spot, or spot price, is a term used in trading to refer to the current market price of a particular asset or commodity, such as gold, oil, or currency, at the time of the trade. It is the… Read more
A stock index is a benchmark that tracks the performance of a specific group of stocks, typically from a particular market or industry sector. The index is used to measure the overall… Read more
Support is a technical analysis term used in trading to refer to a price level at which buying pressure is expected to be strong enough to prevent a further decline in the price of an… Read more
The Swiss Franc, also known as the “Swissie” and symbolized as CHF, is the official currency of Switzerland. It is widely considered to be one of the most stable and safe-haven… Read more
Technical analysis is a method of evaluating securities, such as stocks or currencies, based on statistics generated by market activity, such as price and volume. It is used by traders and… Read more
Terminal Value (TV) is a financial term used in the context of business valuation and investment analysis. It refers to the estimated value of a company or investment at the end of a… Read more
A tie is a situation where the market price of a security or asset remains unchanged at the end of a trading session or period. This means that the opening and closing prices are the same,… Read more
Time frame or time period is the duration or interval of time used to analyze or measure price movements and trends in the financial markets. The choice of time frame depends on the… Read more
A tournament is a competitive event or contest where traders compete against each other to achieve the highest profit or the best risk-adjusted return within a specified time frame.… Read more
A trade down is a situation where an investor sells a higher-priced asset and replaces it with a lower-priced asset of similar characteristics. The primary goal of a trade down is to… Read more
A trade up is a situation where an investor sells a lower-priced asset and replaces it with a higher-priced asset of similar characteristics. The primary goal of a trade up is to improve… Read more
A trader is an individual or firm that buys and sells financial instruments, such as stocks, bonds, currencies, commodities, and derivatives, in financial markets with the goal of making a… Read more
Trading hours are the designated time period during which financial markets are open for trading. The trading hours for different markets and assets vary depending on the country,… Read more
A trading strategy is a set of rules and procedures that a trader uses to make trading decisions in financial markets. A trading strategy aims to maximize profits and minimize losses by… Read more
Trading turnover is the total value of securities that are bought and sold within a given time period, typically a day, week, or month. It is an important measure of the activity and… Read more
A Treasury Inflation-Protected Security (TIPS) is a type of government bond issued by the United States Department of the Treasury that is designed to protect investors from the effects of… Read more
A trend is the general direction that the price of a financial asset is moving over time. Trends can be either upward or downward and can be identified by analyzing the price movement of… Read more
A trend line is a straight line that is drawn on a chart to connect two or more price points, typically the highs or lows of an asset's price. Trend lines are used to help identify the… Read more
Trendless market is a market condition in which an asset's price is not exhibiting a clear trend, but rather is moving sideways within a range-bound pattern. During a trendless market, the… Read more
A trust fund is a legal arrangement in which assets are held by a trustee on behalf of one or more beneficiaries. The purpose of a trust fund is to protect and manage assets for the… Read more
The US dollar (USD) is the official currency of the United States and is also used as a standard currency in international trade. It is the most widely used currency in the world, with… Read more
Volatility is the amount of fluctuation or variability in the price of a financial instrument or market over a given period of time. It is a measure of the degree of uncertainty or risk… Read more
Yield on Cost (YOC) is a financial metric used to measure the current yield of an investment in relation to its initial cost or purchase price. It is calculated by dividing the current… Read more
Yield percentage, also known as yield or yield rate, is a financial term used to describe the rate of return on an investment. The yield percentage is expressed as a percentage and is… Read more
A Zero Cost Collar is a financial strategy used to limit the potential loss on an investment while also capping the potential profit. It involves using options contracts to create a… Read more
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