Glossary
There are currently 191 names in this directory
Altcoin
This term refers to low market cap cryptocurrencies. It originated as a term to describe all cryptocurrencies "alternative coins" other than bitcoin.
Anonymous Trading
Traders can opt not to disclose their identity while making offers or bids on the financial markets.
Arbitrage
The simultaneous purchase and sale of an asset in order to increase profits with minimal risks.
Asset Location
An investment strategy that aims to balance risk and reward by distribute a portfolio's assest according to a trader's goals and risk tolerance.
Attorney in Charge
An individual authorized to make transactions on the financial markets on behalf of the trader.
Away from the Market
An expression used when a buy or sell price deviates from the assets market price.
Balance of Payments (BOP)
A record that tracks a country's transactions over a particular period of time.
Balance of Trade
The difference in value between a country's imports and exports over a particular period of time.
Bank Rate
The interest rate that the central bank of a country gives loans to domestic comercial banks.
Base Currency
A term used in trading Foreign Exchange. When quoting currency pairs, it is the first currency that you trade the secondary/quoted currency against. Example: EUR/USD - the Euro is the base currency, and the US Dollar is the quote currency.
Bear
An investor who believes that the price of a particular asset will fall and attempts to profit from a decline in stock prices.
Block
A collection of data defining transactions that took place in a particular period of time. After being published, blocks cannot be changed and therefore are linked with other blocks to creat a chain of data.
Bretton Woods Agreement
An agreement for an international monetary system. This agrement was signed in 1944 in the United States.
Broker
A person who buys and sells financial assets as a middleman between retail traders and established financial corporations.
Bull
An investor who believes that the price of a particular asset rise fall and attempts to profit from an increase in stock prices.
Call Option
An agreement that allows a buyer the option to buy a financial asset at a specified price with in a particular period of time. The buyer however is not obligated to purchase the asset.
CCI
CCI stands for Commodity Channel Index. This is a technical trading tool regularly used to measure when a financial instrument has been overbought or oversold.
Centeralization
Any system that is controlled by trusted parties, such as banks or money transmitters. All financial assets other than cryptocurrency have a centralized market.
CFD
CFD stands for Contract for Difference. This is a contract between an investor and an investment instituation. At the end of the contract, the parties involved exchange the monetary difference between the opening and closing prices of the financial instrument involved in the contract.
Commodity Pairs
The foreign exchange pairs that are highly correlated to commodity fluctuations in the global financial markets. These three pairs are USD/CAD, AUD/USD, and NZD/USD.
Correlation
A statistical term for establishing a relationship between two or more independent assets.
Counter Currency
A term used in trading Foreign Exchange. When quoting currency pairs, it is the second currency that you compare against the base currency.
CPI
CPI stands for Consumer Price Index. A statistical measurement that examines changes in the purchasing power of a currency and the inflation rate.
Cross Currency Transaction
A transaction that involves two or more currencies being traded at the same time.
Day Trading
This is when positions on the market are opened and closed on the same day, rather than holding the positions overnight.
Decentralization
Cryptocurrency has allowed for decentralization of the markets. Unlike all other financial assets, cryptocurrency does not need to be traded by a trusted party.
Demo Trader
An account that uses virtual money, allowing a potential investor to get acclimated to trading in the market before investing real money.
Depth of Market
The volume of open buy and sell orders for a particular currency pair at a particular point in time.
ECN Broker
ECN stands for Electronic Communication Networks. An ECN Broker is a financial expert that uses ECN's to allow clients direct access to the markets.
European Central Bank (ECB)
The European Central Bank is responsible for the monetary policy of countries that have adopted the Euro as their currency.
Expert Advisor
An automated trading robot within the trading platform that allows the analytical and trading processes to be carried out with limited manual control.
Federal Reserve
The central bank of the United States, responsible for overseeing the financial system of the country. This is the leading financial instituation in the world.
Fibonacci
A common technical tool used by analysts to identify potential levels of support and resistance based on key numbers.
FUD
FUD is an acronym that stands for fear, uncertainty, and doubt. It is often used by traders to reference the negative attitude surrounding cryptocurrency.
Fundamental Analysis
A method of market analysis used to evaluate related economic, financial and other qualitative and quantitative factors that affect the performance of a particular financial instrument.
Gap
The difference in value between the closing price of one trading period and the opening price of the following trading period.
GDP
GDP stands for Gross Domestic Product. It determines the total worth of a country's services and produced goods with in a particular time period, and is used to gauge the economic standing of a country.
GTC
GTC stands for Good Till Cancelled. This is an order to buy or sell a specific financial asset at a specific price, that is only valid until a trader chooses to cancel it.
Index
A weighted average of preselected stock prices that is used to measure a section of the stock market. Some popular indices are the NASDAQ, Dow Jones, and S&P 500.
Inflation
A progressive increase in prices of goods and services within a country, which in turn reduces the purchasing value of that country's currency.
Interest Rate
The fee paid for borrowing money. Interest rates fluxate as they are affected by Central Banks and inflation.
Introducing Broker
A broker with a direct relationship with the client, but delegates the transactions and trades to another broker.
Jobber
A term used for a trader who intends to make accumulated profits by opening and closing short-term positions.
Lagging Indicators
Statistics that change after trends in the economy have already started to change.
Leverage
A financial tool that allows an investor to magnify their market exposure beyond their initial capital.
Margin Account
An account provided by brokers that allows investors to buy securities borrowed funds.
Margin Call
The requirement made by a broker that a trader makes an additional deposit to cover possible losses.
Market Maker
A brokerage firm that buys and sells financial assets to provide liquidity to the markets.
MetaTrader4
The innovative trading platform used to provide brokerage services to traders in multiple financial assets.
Mine and Yours
Terms used to describe the intention to buy or sell. "Mine" is used when buying, and "yours" is used when selling.
Miners/Mining
A miner's duty is to keep blockchains secure by confirming transactions and time-stamping entries.
Monetary Poilicy
The policy regarding interest rates and money supply put in place by the central bank of a particular country.
Money Market
A segment of the financial market involving transactions of financial assets with fast maturities and high liquidity.
Moving Acerage Convergence Divergence (MACD)
A technical indicator used to determine the trend of the market.
Moving Average
A technical indicator used to filter out the abnormalities to allow the focus to be on the statistical average of the original curve.
News Trader
A trader who bases investment decisions on how global news announcements impact the markets.
NFP
Stands for Non Farm Payroll. A monthly report done by the United States Department of Labor, which is used to determine the status of the labor market, excluding farmers.
Noise
Abnormalities in the market that make it difficult to focus on the statistical averages used to make a trading decision.
One Cancels the Other Order (OCO)
Two transactions sunmitted at the same time, where the completion of one automatically cancels the other.
Oscillators
Technical analysis tools using an indicator that fluctuates between overbought and oversold levels, used to express buy and sell signals.
Overtrading
The risky habit of engaging in excessive trading transactions without appropriate research.
PIP
Stands for Percentage In Point. The smallest unit of measurement used in Forex trading to determine exchange rates between multiple currencies.
Price.Earnings Ratio (P/E)
The ratio used to value a company by comparing it's current share price to it's per share earnings.
Pump and Dump
The process of inflating an assets value by purchasing a large quantity in the hopes that others will follow suit. Afterwords, the initial buyer will sell their assets in the hopes to make a profit from the inflated price.
Put Option
An agreement that allows a seller the option to sell a financial asset at a specified price with in a particular period of time. The seller however is not obligated to sell the asset.
Quantitative Easing
A method used by central banks to encourage economic growth. This is done by purchasing government securities in order to increase capital and liquidity in financial institutions.
Quote Currency
A term used in trading Foreign Exchange. When quoting currency pairs, it is the second currency that you trade against the first currency.
Rebate
The portion of interest or dividends on an asset that is returned to the investor at the end of a trade.
Relative Strength Index (RSI)
A technical indicator that measures if a financial instrument has been overbought or oversold.
Resistance
The price at which a financial asset peaks, before multiple investors decide to sell the asset.
Risk Management
One or more strategies used in order to reduce financial risk when trading in the financial markets.
Rollover
The act of swaping a matured contract prior to it's expiration date, with a new contract. The difference in price between the two contracts is adjusted.
Scalping
A strategy used by traders who make many small short-term transactions, looking to increase their profits with multiple small increments that can compound.
Security Exchange Commission (SEC)
U.S. government agency that regulates national securities industry, stock markets, and electronic securities agency.
Sell Stop
An order for a limit order to become a market order once it falls below the current market price.
Slippage
The price difference between an assets displayed value and the exact value when a transaction occurs.
Spot
Taking the value of the current date and selling at that price, but settling in the following two days.
Stochastic
An oscillating indicator used to determine the change in price of a financial asset from one closing period to the next.
Stop Loss Order
An order given by a broker to limit an investor's loss by making them sell when a security reaches a certain price.
Take Profit
A type of limit order that determines the specific price to close an open position in order to profit.
Trailing Stop Loss
The ability to automatically adjust the limit price threshold to be closer to a more favorable market price.
Transaction
The process of exchanging goods, services, and financial assets between a buyer and a seller.
Under-Valuation
If an exchange rate does not surpass it's purchasing power, it is considered undervalued.
Variation Margin
The extra amount of money needed to constitute for losses when a broker's balance falls beneath the required minimum.
Volatility
The measurement used to describe the fluctuation of the price of a financial instrument over a specific amount of time.
Wallet
The place where cryptocurrencies are stored. There are five types of crypto wallets; software wallets, mobile wallets, web wallets, paper wallets, and hardware wallets.
Wire Transfer
The process of transferring money electronically from one financial institution to another.
World Bank Group
A support organization that offers its' technical and financial advice to developing countries worldwide.
XAG
The currency symbol for the precious metal silver. Silver can be used in financial exchanges and typically maintains a high price.
XAU/USD
The gold (XAU) to U.S. dollar (USD) exchange rate can be monitored online and is consistently changing.
Yield Curve
The use of a graph to exhibit the correlation between interest rate and the maturity of the debt asset for a trader.