Trading Glossary: Key Terms Explained

Struggling with all that trading terminology? Can’t wrap your head around bulls, bears and abandoned babies? Our extensive glossary has you covered, with short and simple definitions for over 600 trading terms.

A

• Abandoned Baby
  A candlestick pattern that indicates a trend reversal.
• Absolute Breadth Index (ABI)
  A market indicator that measures market volatility, without factoring in price movement.
• Account Statement Report
  A report that details all transactions in a trading account over a specific time frame. Also known as a customer account statement.
• Acquisition
  When one company purchases a controlling stake or all of another company’s shares to acquire that company. If a company purchases more than 50% of another company’s shares, it gains effective control over it.
• Advance/Decline Index
  An indicator that is used to measure trend continuations, as well as movements in the market.
• Afghan Afghani (AFA)
  Afghanistan’s national currency.
• Albanian Lek (ALL)
  Albania’s national currency.
• Algerian Dinar (DZD)
  Algeria’s national currency.
• Algorithmic Trading
  The use of computer programs to trade the markets without the need for human input. The programs follow set parameters about when to open and close trades and can react to changes in market conditions.
• Altcoin
  Any cryptocurrency other than Bitcoin.
• Angolan Kwanza (AOA)
  Angola’s national currency.
• Application Programming Interface (API) Trading
  Trading that is conducted using software that interacts with other programs. Traders often use APIs to connect their algorithms to broker platforms.
• Appreciation
  When a trade, currency or other financial asset increases in value.
• Arbitrage
  When traders take advantage of price inefficiencies in the markets. This is achieved by buying and selling the same asset in different markets simultaneously.
• Argentine Peso (ARS)
  Argentina’s national currency.
• Armenian Dram (AMD)
  Armenia’s national currency.
• Aruban Florin (AWG)
  Aruba’s national currency.
• Athens Stock Exchange (ASE)
  Also known as the ATHEX, is a stock exchange located in Athens, Greece.
• Aussie
  A common nickname for the Australian dollar.
• Australian Dollar (AUD)
  Australia’s national currency.
• Australian Securities and Investment Commission (ASIC)
  An independent government body that acts as Australia’s corporate, markets and financial services regulator.
• Autorité des Marchés Financiers (AMF)
  France’s independent public authority responsible for the orderly operation of markets and ensuring the protection of investments in financial products.
• Azerbaijani Manat (AZN)
  Azerbaijan’s national currency.

B

• Bahamian Dollar (BSD)
  The Bahamas’ national currency.
• Bahraini Dinar (BHD)
  Bahrain’s national currency.
• Bangladeshi Taka (BDT)
  Bangladesh’s national currency.
• Bank of Canada (BoC)
  Canada’s central bank.
• Bank of England (BoE)
  The United Kingdom’s central bank.
• Bank of Japan (BoJ)
  Japan’s central bank.
• Barbadian Dollar (BBD)
  Barbados’ national currency.
• Base Currency
  The first currency that appears in a forex pair.
• Belarusian Ruble (BYR)
  Belarus’s national currency.
• Belize Dollar (BZD)
  Belize’s national currency.
• Bermudian Dollar (BMD)
  Bermuda’s national currency.
• Bhutanese Ngultrum (BTN)
  Bhutan’s national currency.
• Black Swan
  An unexpected event that has a negative impact on the markets.
• Black Wednesday
  September 16, 1992, when the pound collapsed, forcing Britain to withdraw from the European Exchange Rate Mechanism.
• Blockchain & NFT
  Blockchain & NFT Index provides systematic exposure to the NFT (Non-Fungible Tokens) and Blockchain sectors through a selection of companies. These are publicly listed in the US and Canada, with relevant revenue exposure to the NFT, Blockchain and/or Cryptocurrency ecosystems. The index consists of Riot Platforms, Marathon Digital Holdings, and MicroStrategy. Information provided by BITA
• Bolivian Boliviano (BOB)
  Bolivia’s national currency.
• Bolsa de Madrid (Madrid Stock Exchange)
  The largest and most international of Spain’s four regional stock exchanges that trade shares and convertible bonds and fixed income securities, and both government and private-sector debt.
• Borsa Italiana
  Is the Italian stock exchange based in Milan.
• Bosnia and Herzegovina Convertible Mark (KM)
  Bosnia and Herzegovina’s national currency.
• Botswana Pula (BWP)
  Botswana’s national currency.
• Brazilian Real (BRL)
  Brazil’s national currency.
• Brunei Dollar (BND)
  Brunei’s national currency.
• Bulgarian Lev (BGN)
  Bulgaria’s national currency.
• Burmese Kyat (MMK)
  Myanmar’s national currency.
• Burundian Franc (BIF)
  Burundi’s national currency.

C

• Cambist
  An expert in the foreign exchange market.
• Cambodian Riel (KHR)
  Cambodia’s national currency.
• Canadian Dollar (CAD)
  Canada’s national currency.
• Cape Verdean Escudo (CVE)
  Cape Verde’s national currency.
• Cayman Islands Dollar (KYD)
  The Cayman Islands’ national currency.
• CFP Franc (XPF)
  The national currency of the French overseas collectives, including French Polynesia, New Caledonia and Wallis and Futuna.
• Chicago Board of Trade (CBOT)
  The world’s oldest futures and option exchange. It was founded in 1848.
• Chicago Mercantile Exchange (CME)
  A global derivatives marketplace for the trading of futures and options.
• Chilean Peso (CLP)
  Chile’s national currency.
• Chinese Yuan (CNY)
  The basic unit of the renminbi, China’s national currency.
• Colombian Peso (COP)
  Columbia’s national currency.
• Comorian Franc (KMF)
  Comoros’ national currency.
• Congolese Franc (CDF)
  Congo’s national currency.
• Contract for Difference (CFD)
  A derivative instrument that traders can use to speculate on the price of an instrument, without taking ownership of the underlying asset.
• Costa Rican Colón (CRC)
  Costa Rica’s national currency.
• Counter Currency
  Also known as the Quote Currency, this is the second currency that appears in a forex pair.
• Cross Currency Pair
  A pair that includes two major currencies other than the US dollar.
• Crypto 10
  The Crypto10 Index provides a transparent and objective measure of the price return performance of a basket of 10 leading cryptocurrencies. They are measured against the USD and traded at well-established digital asset exchanges with the largest positions capped to 25%. It includes BTC, ETH, BND, and ADA amongst others. Information provided by BITA
• Cuban Peso (CUP)
  Cuba’s national currency.
• Currency Pair
  The quotation of two different currencies, with the value of one currency being quoted against the other.
• Currency Peg
  When a currency’s exchange rate is fixed to that of another currency in an effort to stabilise it.
• Customer Account Statement
  A report that details all transactions in a trading account over a specific time frame. Also known as an account statement report.
• Cyprus Securities and Exchange Commission (CySEC)
  Cyprus’ financial regulatory authority.
• Czech Koruna (CZK)
  The Czech Republic’s national currency.

D

• Danish Krone (DKK)
  Denmark’s national currency.
• Delisting
  The removal of a listed security from a stock exchange. The delisting of a security can be voluntary or involuntary and usually results when a company ceases operations, declares bankruptcy, merges, does not meet listing requirements, or seeks to become private.
• Demo Account
  A type of account where traders can test their strategies without risking their own money. Also known as a practice account.
• Depreciation
  When a trade, currency, or other financial asset decreases in value.
• Dividend
  A dividend is a distribution of profits by a corporation to its shareholders.
• Dividend yield
  Expressed in percentage terms and shows how much dividends a company pays out each year, relative to its stock market price.
• Djiboutian Franc (DJF)
  Djibouti’s national currency.
• Dollar Bear
  A term used to describe a trader that is pessimistic about the price of the US dollar.
• Dollar Bull
  A term used to describe a trader that is optimistic about the price of the US dollar.
• Dominican Peso (DOP)
  The Dominican Republic’s national currency.
• Double Bottom
  A bullish pattern used as an indicator of trend reversal.
• Double Top
  A bearish pattern used as an indicator of trend reversal.
• Dove
  A banker or economist who believes interest rates should be kept low as there is no threat of inflation.
• Dovish
  Used to describe statements made by bankers or economists that believe interest rates should be kept low as there is no threat of inflation.
• Dow Jones Industrial Average (DJIA)
  A major stock market index that tracks the 30 biggest US stocks.
• Down Tick
  When an asset is sold for a lower price than the last sale.
• Drawdown
  A percentage that measures the price drop of an asset, from peak-to-trough, over a specific time frame.

E

• Earnings Call
  It is a teleconference, or webcast, in which a public company discusses the financial results of a reporting period with analysts, investors, and the media. The name comes from earnings per share, the bottom-line number in the income statement divided by the number of shares outstanding.
• Earnings Per Share
  Earnings per share (EPS) is calculated as a company’s profit minus preferred dividends and extraordinary items, divided by the outstanding shares of its common stock and is an indicator of profitability.
• East Caribbean Dollar (XCD)
  The official currency of the Organisation of Eastern Caribbean States’ eight members including Dominica and Saint Vincent and the Grenadines.
• Economic Calendar
  A tool that traders use to follow the latest economic events that can impact the markets.
• Economic Indicator
  Data points and reports that measure specific factors of the issuing country’s economy. Releases are closely followed by traders as they can have significant effects on market volatility.
• Economic Release
  A publication that includes data related to the economic health of a country.
• Effective Date
  In contract law, the effective date is the date that an agreement or transaction between or among signatories becomes binding. For an initial public offering (IPO), it is the date when shares can first be traded on an exchange.
• Egyptian Pound (EGP)
  Egypt’s national currency.
• Electronic Communication Network (ECN)
  ECNs collect quotes from multiple liquidity providers, to offer traders the best possible prices in the market. Orders on an ECN are executed with no dealing desk intervention.
• Elliot Wave Theory (EW)
  A method of technical analysis used by traders to predict market trends.
• End of Day Order (EOD)
  An order to buy or sell an asset when it reaches a specific price. The order remains open until the end of the trading day. If the price isn’t reached, the order expires.
• Entry Order
  An order to buy or sell an asset when it reaches a specific price.
• Equity
  The balance of a trader’s account, plus or minus any profits or losses from open trades.
• Eritrean Nafka (ERN)
  Eritrea’s national currency.
• Ether
  The cryptocurrency token produced by the Ethereum’s platform. Abbreviated as ETH.
• Ethiopian Birr (ETB)
  Ethiopia’s national currency.
• EUREX
  An international exchange which primarily offers trading European based derivatives. It is the largest European futures and options market.
• Euro (EUR)
  The Eurozone’s official currency.
• EURONEXT
  A pan-European exchange that offers various trading and post-trade services. Traded assets include regulated equities, exchange-traded funds, warrants and certificates, bonds, derivatives, commodities, foreign exchange as well as indices.
• Euronext Amsterdam
  The Netherlands stock exchange and it is considered one of the world’s oldest stock exchanges. Amsterdam Stock Exchange (AEX) merged with the Brussels, Paris, and Lisbon Stock Exchanges to form Euronext N.V., renaming it to Euronext Amsterdam.
• Euronext Brussels
  Belgium’s stock exchange was founded in Brussels, Belgium, by decree of Napoleon in 1801. In 2002, the Brussels Stock Exchange (BSE) merged with the Amsterdam, Lisbon, and Paris stock exchanges into Euronext N.V., renaming it to Euronext Brussels.
• Euronext Lisbon
  The largest stock exchange in Portugal. In 2002, the Lisbon Stock Exchange merged with the Amsterdam, Brussels, and Paris Stock Exchanges into Euronext N.V., renaming it to Euronext Lisbon.
• Euronext Paris
  France’s securities market, formerly known as the Paris Bourse, which merged with the Amsterdam, Lisbon, and Brussels exchanges in September 2000 to form Euronext N.V. renaming it to Euronext Paris.
• European Central Bank (ECB)
  The Eurozone’s central bank.
• European Securities and Markets Authority (ESMA)
  An independent European Union Authority located in Paris. It is one of the three new European Supervisory Authorities set up within the European System of Financial Supervisors.
• European Session
  The time of day when the European markets are open for trading.
• Exchange
  A regulated marketplace where financial instruments are traded.
• Exchange Rate
  The price at which a currency can be traded or exchanged for another.
• Exchange Traded Fund (ETF)
  An exchange-traded fund (ETF) is a type of pooled investment security that operates much like a mutual fund and is traded on stock exchanges.
• Execution Day (ex-day)
  The ex-date or ex-dividend date is the trading date on (and after) which the dividend is not owed to a new buyer of the stock. The ex-date is one business day before the date of record.
• Exit Strategy
  A pre-thought-out plan to close a trade.
• Exotic Currency
  A currency that is not one of the majors or minors.
• Exotic Currency Pair
  A pair that includes a major currency and one from an emerging economy.
• Expert Advisor (EA)
  A computer algorithm that allows traders to automate their trading strategy.
• Expiration Date
  The final day on which a financial contract is valid.
• Exponential Moving Average (EMA)
  A technical indicator used to measure an asset’s average price over a specific number of periods. Higher weight is given to recent data.

F

• Falkland Islands Pound (FKP)
  The Falkland Islands’ national currency.
• Falling Three Methods
  A bearish pattern used as an indicator for trend continuation.
• Fast Market
  Used to describe a highly volatile trading session with a large trading volume.
• Fear Of Missing Out (FOMO)
  A term that refers to the fear a trader may have of missing out on a potentially profitable opportunity. This, in turn, can lead to making ill-informed trading decisions, fuelled by emotion rather than logic and research.
• Federal Financial Supervisory Authority (BaFIN)
  Germany’s financial regulatory authority.
• Federal Open Market Committee (FOMC)
  A committee within the Federal Reserve that is responsible for setting US interest rates.
• Federal Reserve System (FRS) (The Fed)
  The United States’ central bank.
• FIAT
  FIAT currencies are issued by states and governments, i.e., traditional “paper” money. FIAT is Latin, roughly meaning determination by authority.
• Fiber
  A common nickname for the EURUSD pair.
• Fibonacci Numbers
  A series of numbers that make up a Fibonacci sequence, starting with 0 and 1, in which each number is the sum of the previous two.
• Fibonacci Retracements
  A technical indicator used by traders to determine Fibonacci relations in the price changes of an asset. It involves drawing lines on a chart at key Fibonacci ratios, which act as support and resistance levels.
• Fifty Percent Principle
  A general rule that predicts a market trend will experience a 50% reversal on current gains, before continuing in its original direction.
• Fighting the Trend
  Used to describe traders that open positions against the prevailing market trend.
• Fijian Dollar (FJD)
  Fiji’s national currency.
• Fill or Kill
  An order to buy or sell an instrument that must be executed immediately (in a few seconds, customarily) in its entirety; otherwise, the entire order is cancelled and no partial fulfilments are allowed.
• Fill Price
  The price at which a trade is executed.
• Financial Conduct Authority (FCA)
  The United Kingdom’s financial regulatory authority.
• Financial Regulator
  An institution tasked with overseeing and controlling a country’s financial system.
• Financial Times Actuaries 100 Index (FTSE 100) (Footsie)
  An index that reflects the UK’s economic health. It consists of the largest companies on the London Stock Exchange, with almost 80% market cap.
• First In First Out (FIFO)
  Closing trades in the order they were opened.
• Flag
  A pattern that indicates trend continuation. It usually appears after a strong trend experiences a period of consolidation.
• Flat Position
  When the price of an asset being traded doesn’t experience significant movement.
• Flip
  Used to describe a trader who moves from having more long trades, to having more short trades.
• Floating Profit and Loss
  Profit and loss from open positions that has yet to be realised.
• Foreign Exchange (FX)
  The act of trading one currency for another.
• Foreign Exchange Market
  A decentralised market where currencies are exchanged. It’s the largest global market, with an average volume of $5 trillion per day.
• Fork
  When the community votes to change the protocols that govern the coin. Soft forks are not as invasive and are often backwards compatible with the previous iterations. Hard forks require all nodes to comply with upgrades, and if they don’t a fork occurs. Both previous and new versions can coexist on a network.
• Forward
  A cash transaction where a buyer and seller agree upon delivery of a specified quality and quantity of goods at a specific date in future.
• Forward Points
  The difference in two currencies’ interest rates, measured in rate points.
• Frankfurt Stock Exchange (FRA)
  Germany’s largest stock exchange and the twelfth largest in the world by market cap.
• Free Margin
  The funds in a trader’s account that are available to open new trades.
• Front Running
  When a broker or another individual has illegal inside information about events that may affect the markets and uses it to promote their interests.
• FUD
  A term that stands for Fear, Uncertainty, and Doubt. It describes public statements made to disinform and spook traders to change their outlook on the market.
• Fulcrum Point
  Also known as a Turning Point, it is a specific point on a chart where the market trend changes direction.
• Fundamental Analysis (FA)
  A type of market analysis that attempts to identify if instruments are overvalued, undervalued, or properly valued at their true price. It focuses on geopolitical and macroeconomic factors that can have a massive impact on market prices.
• Fundamental Trader
  A trader who uses fundamental analysis to inform their trades.
• Futures
  An agreement to buy or sell a commodity for delivery in the future at a price that is determined at the initiation of the contract and may be settled by either delivery or offset.

G

• G10 Currencies
  Ten of the world’s most traded and most liquid currencies, including the US dollar, Euro, British pound, Japanese yen, Australian dollar, New Zealand dollar, Canadian dollar, Swiss franc, Norwegian krone, and Swedish krona.
• G7 Currencies
  Originally, a group of seven currencies from industrialised nations, including the US, the UK, Germany, France, Canada, Italy, and Japan. This changed after three of the group adopted the Euro.
• Gambian Dalasi (GMD)
  Gambia’s national currency.
• Georgian Lari (GEL)
  Georgia’s national currency.
• Ghana Cedi (GHS)
  Ghana’s national currency.
• Gibraltar Pound (GIP)
  Gibraltar’s national currency.
• Gold Standard
  Used prior to the first World War, this was a monetary system that linked the value of currency to that of gold.
• Golden Cross
  A bullish pattern formed when an asset’s short-term moving average and its long-term moving average cross each other. It hints at a major market rally.
• Good for the Day Order
  Also known as a Day Order, it is an order that is valid until the end of the trading day, when it expires.
• Good Till Cancelled Order (GTC)
  A pending order that remains valid until the trader cancels it. It is worth noting that some brokers may limit the amount of time the order remains open.
• Good Till Date/Time Order (GTD)
  A pending order that remains valid until a specified date. If it is not filled by that date, it is cancelled automatically.
• Gross Domestic Product (GDP)
  A major economic indicator that measures changes in the value of goods and services a country produces.
• Growth Currency
  Describes the currency of a country whose economy is growing rapidly.
• Guatemalan Quetzal (GTQ)
  Guatemala’s national currency.
• Guinean Franc (GNF)
  Guinea’s national currency.
• Guppy
  A common nickname for the GBPJPY pair.
• Guyanese Dollar (GYD)
  Guyana’s national currency.

H

• Haitian Gourde (HTG)
  Haiti’s national currency.
• Hammer
  A candlestick that forms when an asset trades at lower prices than it opened at, but rallies to close near or above that price.
• Hanging Man
  A bearish candlestick that hints at the end of an upward moving trend.
• Harami
  A formation comprised of two candlesticks that hints at the reversal of a trend.
• Hard Currency
  Used to describe a currency that is seen as stable.
• Hawk
  A banker or economist who believes interest rates should be raised to stop inflation.
• Head and Shoulders
  A pattern that hints at the reversal of a trend.
• Hedge
  A tactic to manage risk when trading. It is the practice of entering into different positions in order to limit or offset risk of financial loss from an adverse price change.
• Hedge Fund
  A private investment or pool that invests and trades on behalf of its customers in various assets, such as securities, commodities, forex, and derivatives.
• Hit the Bid
  A term that refers to a trader buying at the ask price or selling at the bid price.
• Honduran Lempira (HNL)
  Honduras’ national currency.
• Hong Kong Dollar (HKD)
  Hong Kong’s national currency.
• Horizontal Channel
  A sideways channel that shows an asset’s price experiencing a period of consolidation.
• Hot Money
  Describes a currency that has moved quickly between financial markets to profit from higher interest rates.
• Hungarian Forint (HUF)
  Hungary’s national currency.
• Hyperinflation
  When a country’s currency experiences rapid inflation.

I

• Icelandic Króna (ISK)
  Iceland’s national currency.
• Ichimoku Kinkō Hyō
  A technical indicator used to measure market trends and momentum, as well as support and resistance levels.
• ICO
  Known as an Initial Coin Offering, mirroring its stock market counterpart, an IPO (initial public offering). Investors receive a stake in new crypto projects.
• Immediate of Cancel
  An order to buy or sell an instrument that attempts to execute all or part immediately and then cancels any unfilled portion of the order.
• Index
  A collection of securities, commodities, or other assets that hold financial value, that reflect the overall health of a country’s economy or that of a specific sector.
• Indian Rupee (INR)
  India’s national currency.
• Indonesian Rupiah (IDR)
  Indonesia’s national currency.
• Industrial Production
  An indicator that measures the output of industrial goods from factories, mines, and utilities. It is used as a gauge of economic health and of growth in specific industries.
• Inflation
  An increase in the prices of goods and services in a country, resulting in weakened purchasing power for its currency.
• Initial Margin
  The funds required to place a trade.
• Initial Public Offering (IPO)
  When a private company first sells shares of stock to the public and the company’s ownership is transitioning from private ownership to public ownership.
• Institutional Trader
  Any entity that controls large amounts of money and trades massive volumes on the markets. Due to its size, the trading activity of such entities can significantly impact the markets.
• Interbank Market
  The highest level of the forex market, where the largest banks trade currencies with each other.
• Interest Rate
  A percentage of a loan, charged by the issuer to the borrower, in addition to the primary debt.
• International Monetary Fund (IMF)
  An international organisation working to maintain global financial stability and promote international trade.
• Internet Computer (ICP)
  Internet Computer allows data centres to connect and offer a decentralised cloud storage solution. It can also be used for the development and deployment of both traditional apps and dApps. Holders of the network’s token ICP are allowed to take part in the network’s governance.
• Intraday
  Describes trading activities that take place within a single trading day.
• Inverted Head and Shoulders
  A pattern that indicates the reversal of a trend.
• Iranian Rial (IRR)
  Iran’s national currency.
• Iraqi Dinar (IQD)
  Iraq’s national currency.
• ISIN
  The International Securities Identifications Number, ISIN, is a 12-digit alphanumeric code that uniquely identifies a specific security.
• Israeli New Shekel (ILS)
  Israel’s national currency.

J

• Jamaican Dollar (JMD)
  Jamaica’s national currency.
• Japanese Yen (JPY)
  Japan’s national currency.
• Jordanian Dinar (JOD)
  Jordan’s national currency.
• Junk Currency
  A term that refers to a currency experiencing rapid devaluation.

K

• Kazakhstani Tenge (KZT)
  Kazakhstan’s national currency.
• Kenyan Shilling (KES)
  Kenya’s national currency.
• Killer Trade
  A term that refers to a trade that was especially profitable.
• Kiwi
  A common nickname for the New Zealand dollar.
• Kuwaiti Dinar (KWD)
  Kuwait’s national currency.
• Kyrgyzstani Som (KGS)
  Kyrgyzstan’s national currency.

L

• Lagging Indicator
  An indicator that measures changes in an economy after they’ve happened.
• Laissez-Faire (“leave alone”)
  A theory that supports the idea that the markets should be left to self-regulate, without the interference of governments, regulations, and restrictions.
• Lao Kip (LAK)
  Laos’ national currency.
• Latency
  The time between an order being placed and when it is executed.
• Leading Indicator
  An indicator that registers changes in an economy before they are felt.
• Lebanese Pound (LBP)
  Lebanon’s national currency.
• Lesotho Loti (LSL)
  Lesotho’s national currency.
• Leverage
  Acts as a loan from a broker, allowing a trader to open larger positions on the market with a smaller initial investment.
• Liberian Dollar (LRD)
  Liberia’s national currency.
• Libyan Dinar (LYD)
  Libya’s national currency.
• LIFO
  Closing trades in reverse order from when they were opened, i.e., the latest order is closed first.
• Limit Order
  An order that is executed automatically when an asset reaches a predefined price.
• Limit Up/Limit Down
  Limit up is the maximum amount a price is permitted to increase during one trading day and is used primarily on the commodities futures markets, where regulators seek to prevent volatility from reaching extreme levels. Whilst limit down refers to the maximum permitted decline in one trading day. Both limit up and limit down prices are interventions employed by exchanges to help maintain orderly trading conditions.
• Line Chart
  A chart that shows an asset’s change in price using a simple line. The line is plotted using the closing prices of the asset over a specific time frame.
• Linearly Weighted Moving Average (LWMA)
  Plots an asset’s closing prices over a specific time frame, with a higher weight assigned to the most recent data.
• Liquidate
  The act of closing a trade to secure profits or prevent further losses.
• Liquidation
  The process of bringing a business to an end and distributing its assets to claimants. Tax authorities and creditors receive priority over shareholders.
• Liquidity
  Refers to the volume of trades being placed in the market. Typically, the higher the number, the more an asset can be bought or sold without significant movement in its price.
• Liquidity Provider (LP)
  A financial institution or company that specialises in being a market maker in specific products, in which they will hold risk (maintaining/keeping positions).
• London Stock Exchange (LSE)
  Located in London, the LSE is one of the world’s largest stock exchanges.
• Long Candle
  A long-bodied candlestick that indicates significant price movement.
• Long Position
  Also known as ‘Going Long,’ this is when a trader buys an asset expecting it to increase in price.
• Long Term Trader
  A trader that maintains open positions for prolonged periods of time.
• Loonie
  A common nickname for the Canadian dollar.
• Lost Decade
  Often used to describe Japan’s economic crisis of the 1990s, characterised by a lack of economic growth and falling real estate prices.
• Lot
  The standardised number of units of a financial instrument. Lot sizes differ based on the asset traded. In forex, a lot is equal to 100,000 units of the base currency.

M

• Macanese Pataca (MOP)
  Macau’s national currency.
• Macedonian Denar (MKD)
  Macedonia’s national currency.
• Major Currency
  A name given to the seven most frequently traded currencies, the USD, EUR, GBP, JPY, CAD, and CHF.
• Major Currency Pair
  A pair that involves the US dollar paired with any of the other major currencies.
• Malagasy Ariary (MGA)
  Madagascar’s national currency.
• Malawian Kwacha (MWK)
  Malawi’s national currency.
• Malaysian Ringgit (MYR)
  Malaysia’s national currency.
• Maldivian Rufiyaa (MVR)
  The Maldives’ national currency.
• Managed Account
  Also known as a Controlled Account, this is when a trader’s account is handled by a third-party who is responsible for its trading activity.
• Management Buyout
  The term management buyout (MBO) refers to a financial transaction where someone from corporate management or the team purchases the business from the owner(s).
• Margin
  The money needed to open a leveraged trade.
• Margin Account
  An account type that allows investors to open trades using leverage.
• Margin Call
  A notification received when the funds in a trading account fall below a specific level. It calls for the trader to deposit more money or adjust their positions to maintain their open trades. Also known as a Margin Alert.
• Margin Level
  The ratio of equity to used margin in a trading account, expressed as a percentage.
• Market Capitalisation
  Sometimes referred to as market cap, is the total value of a publicly traded company’s outstanding common shares owned by stockholders.
• Market Depth
  Describes an asset’s ability to fill a large volume of trades, without there being a significant change in its price.
• Market Maker (MM)
  Describes a broker that operates a dealing desk. Such brokers often take the opposite side to client trades and don’t send orders directly to the market.
• Market Order
  An order to buy or sell an asset at the current price.
• Market Reaction
  Describes a highly volatile period in the market after the release of major economic data.
• Marubozo
  A candlestick that shows an asset only traded in a range between its opening and closing price. It is characterised by a lack of an upper or lower wick.
• Maturity
  The date on which a financial contracted is settled.
• Mauritanian Ouguiya (MRO)
  Mauritania’s national currency.
• Mauritian Rupee (MUR)
  Mauritius’ national currency.
• Maximal Volume
  It is the maximum volume that you can place per order for that specific symbol.
• Maximum Trading Power
  The largest trade that can be placed based on the funds available in a trader’s account and the leverage being used.
• Merger
  When two or more companies combine to become a single entity.
• MetaTrader 4 (MT4)
  A popular online trading platform created by the company MetaQuotes.
• MetaTrader 5 (MT5)
  The most recent version of MetaQuotes’ popular MetaTrader platform.
• Mexican Peso (MXN)
  Mexico’s national currency.
• Micro Lot
  Equals 1/100 of a standard lot. In forex, a micro lot is equal to 1,000 units of base currency.
• Mid-Point Spread Cost
  A cost forex brokers charge traders. It’s the difference between the price at which a trader’s market order is executed and the mid-point of the bid/ask spread at the time their order is received.
• Mini Lot
  Equals 1/10 of a standard lot. In forex, a mini lot is equal to 10,000 units of base currency.
• Minimal Volume
  It is the minimum volume that you can place per order for that specific symbol.
• Minimum Bid Rate
  Released monthly by the European Central Bank, it refers to Europe’s main refinancing rate. This rate is used as the basis for interest rates across the Eurozone.
• Minor Currency Pair
  Also known as a Cross Currency, it is a pair that involves two major currencies other than the US dollar.
• Moldovan Leu (MDL)
  Moldova’s national currency.
• Momentum
  The rate at which an asset’s price goes up or down.
• Momentum Trader
  Describes a trader who focuses on trading around major economic events that lead to market volatility.
• Monetary Policy
  A strategy used by central banks to manage the supply and value of currency.
• Mongolian Tögrög (MNT)
  Mongolia’s national currency.
• Morning Star
  A bullish formation that involves three candles and points to the reversal of a trend.
• Moroccan Dirham (MAD)
  Morocco’s national currency.
• Moving Average (MA)
  A technical indicator that filters out market noise to provide a smoother representation of price action.
• Moving Average Convergence Divergence (MACD)
  A technical indicator that measures changes in the price movement of an asset, including momentum, direction, and duration.
• Mozambican Metical (MZN)
  Mozambique’s national currency.

N

• Namibian Dollar (NAD)
  Namibia’s national currency.
• Narrow Market
  Also known as a Thin Market, this is when there are few trades placed on a specific asset. This can result in a higher cost to trade the asset in question.
• NASDAQ
  Formerly an acronym for National Association of Securities Dealers Automated Quotations, the Nasdaq is the world’s second-largest stock exchange behind the NYSE.
• Nasdaq Helsinki (OMXH)
  Formerly known as the Helsinki Stock Exchange, it is a stock exchange located in Helsinki, Finland. Since 3 September 2003, it has been part of Nasdaq Nordic.
• Nasdaq Stockholm
  Formerly known as the Stockholm Stock Exchange, it is a stock exchange located in Stockholm, Sweden. Founded in 1863, it has become the primary securities exchange of the Nordic countries.
• Negative Balance Protection (NBP)
  A feature brokers are required to offer when operating under European regulations, whereby traders are protected from losing more than their initial investment.
• Nepalese Rupee (NPR)
  Nepal’s national currency.
• Netherlands Antillean Guilder (ANG)
  Curaçao’s and Sint Maarten’s national currency. Before being replaced by the US dollar in 2011, it was also the national currency of Bonaire, Saba, and Sint Eustatius.
• Netting
  Netting is a strategy some traders use to manage risk. It involves offsetting a position in a currency with a second position in the same currency, or a similar one. The goal is to offset losses from one position with gains in another.
• New Taiwan Dollar (TWD)
  Taiwan’s national currency.
• New York Stock Exchange (NYSE)
  The world’s largest stock exchange.
• New Zealand Dollar (NZD)
  New Zealand’s national currency.
• News Trader
  A trader who makes investment decisions by following major news announcements.
• Nicaraguan Córdoba (NIO)
  Nicaragua’s national currency.
• Nigerian Naira (NGN)
  Nigeria’s national currency.
• Nippon Ginko
  Japan’s central bank.
• No Dealing Desk (NDD)
  Describes brokers who do not intervene in client orders, sending each trade directly to the market to be executed.
• Noise
  Fluctuations in asset prices that are unrelated to the prevailing market sentiment. It can often distract traders and prevent them from identifying market trends.
• Noise Trader
  Describes a trader who relies on technical analysis to inform their trades, without taking fundamentals into account.
• Nokie
  A common nickname for the Norwegian krone.
• Non-Deliverable Forwards
  A forward contract whereby two parties take opposite sides on a transaction for a set amount of money. The parties then settle the difference between the contracted NDF price and the current spot price. Profit and loss is calculated as the difference between the agreed-upon rate and the spot rate at the time the contract is settled.
• Non-Disclosure Agreement (NDA)
  Also known as a Confidentiality Agreement, it is an agreement signed between parties to keep details of a relationship private.
• Non-Farm Payroll (NFP)
  A monthly report that measures changes in employment figures at US companies excluding the farming industry. It is an indicator of economic growth and inflation. The report is released on the first Friday of every month, unless it’s a bank holiday.
• North American Session
  The time of day when the North American forex markets are open for trading. The session begins at 08:00 EST and ends at 16:00 EST.
• North Korean Won (KPW)
  North Korea’s national currency.
• Norwegian Krone (NOK)
  Norway’s national currency.

O

• Offered Market
  Describes a market with more buy (offer) trades than sell (bid) trades.
• Offsetting Transaction
  A trade that cancels out the risk of another trade.
• Old Lady
  A term for the Bank of England, the UK’s central bank.
• Oman Rial (OMR)
  Oman’s national currency.
• One Cancels the Other Order (OCO)
  A combination of a stop order and a limit order, wherein the execution of one automatically cancels the other. This is used as part of a risk management strategy.
• One-Click Order
  A tool on Trading.com WebTrader which, when enabled, allows traders to open and close positions with a single click.
• One-Tap Order
  A tool on Trading.com App which, when enabled, allows traders to open and close positions with a single tap.
• Open Position
  Another way to describe an open trade.
• Option
  Financial derivative that gives buyers (who are paying a premium) the right, but not the obligation, to buy or sell an underlying asset at an agreed-upon price and date.
• Order
  An instruction issued by a trader to their broker to buy or sell an asset.
• Ordinary Shares
  Also called common shares, are shares sold on a public exchange. Each share of stock generally gives its owner the right to one vote at a company shareholders’ meeting and it does not guarantee a dividend.
• Oscillator
  A technical indicator that helps traders know if a market is overbought or oversold.
• Oslo Stock Exchange (OSE)
  A stock exchange within the Nordic countries which offers Norway’s only regulated markets for securities trading today.
• Over the Counter (OTC)
  An asset that is not listed on any centralised exchange or market. A good example of this is the forex market.
• Overexposure
  Describes when a trader takes on too much risk. A good example of this is investing too much money in a single trade.
• Overnight Position
  A trade that is kept open at the end of a trading day and carries over into the next session.
• Overstay
  Describes when a trader keeps a position open for too long.
• Overtrading
  Describes when a trader lets their emotions get the best of them, opening and closing too many trades, and not following their own plan.

P

• P/E Ratio
  The price-to-earnings ratio is the ratio for valuing a company that measures its current share price relative to its earnings per share (EPS).
• Pakistani Rupee (PKR)
  Pakistan’s national currency.
• Panama Balboa (PAB)
  Panama’s national currency.
• Paper Loss
  Also known as Unrealised Loss, this is loss on a trade that has yet to be closed.
• Paper Profit
  Also known as Unrealised Profit, this is profit on a trade that has yet to be closed.
• Papua New Guinean Kina (PGK)
  Papua New Guinea’s national currency.
• Parabolic Stop and Reversal (PSAR)
  A technical indicator used by traders to pinpoint market entry and exit points. It works best in trending markets and can also help traders set their trailing stop levels.
• Paraguayan Guaraní (PYG)
  Paraguay’s national currency.
• Parity
  When two currencies are of equal value.
• Pending Order
  A trade that will be executed in the future when certain predefined conditions are met.
• Pennant
  A formation on a chart that indicates the continuation of a trend.
• People’s Bank of China (PBOC)
  China’s central bank.
• Period
  A standardised unit used to measure time when charting an asset.
• Peruvian Nuevo Sol (PEN)
  Peru’s national currency.
• Petrodollar
  A term that refers to US dollars earned through the trading of oil.
• Philippine Peso (PHP)
  The Philippine’s national currency.
• Piercing Line
  A bullish candlestick formation comprised of two candles that indicates the reversal of a trend.
• Pip (Point in percentage)
  A benchmark unit a currency pair can move in price. In most pairs, it is the fourth digit after the decimal place. In others, it could be the third or second digit. For example, in pairs featuring the Japanese yen, it is the second digit. The smallest unit a currency pair price can move in our systems is a point, which is 0.1 pips.
• Pip Value
  The amount each pip movement is worth in a trade, which can vary based on the asset traded. It is important to know the pip value as it helps traders set stop loss and take profit levels. The smallest price movement for all instruments on our platforms is a point (also known as a pipette), which is equal to 0.1 pips.
• Pivot Point (PP)
  A technical indicator that helps traders identify potential short-term price movements. It indicates whether the overall market trend is bullish or bearish.
• Point
  A point, otherwise known as a pipette, is the smallest possible price movement to the left side of the decimal point.
• Polish Złoti (PLN)
  Poland’s national currency.
• Portfolio
  Describes a trader’s overall investments. Portfolios are often comprised of multiple assets, including currencies, stocks, indices, and commodities, as diversification can be an effective way to manage risk.
• Position Trader
  Describes traders that keep trades open for longer periods of time, with the goal to profit from primary market trends.
• Pound Sterling (GBP)
  The United Kingdom’s national currency.
• Preference Shares
  A share which entitles the holder to a fixed dividend, whose payment takes priority over that of ordinary share dividends.
• Price Action (PA)
  Describes the movements in price of financial assets.
• Price Channel
  An area on a chart created between two parallel lines – known as support and resistance levels – where price movement occurs.
• Prime Broker
  A group of services that financial institutions offer to large investment clients. These clients are looking to borrow money or assets as part of a netting strategy, with the goal of achieving absolute returns.
• Producer Price Index (PPI)
  An indicator that measures the change in selling prices received by domestic producers of goods and services over a specific timeframe.
• Profit
  Money earned from a trade.
• Profit and Loss (PnL)
  A measure of trading performance calculated by subtracting total losses from total profits.
• Proprietary Trader
  An individual that trades on behalf of a bank or other financial institution.
• Pulling in the Horns
  A term that describes the weakening of a bullish indicator.
• Purchasing Managers Index (PMI)
  An indicator that measures the direction of economic trends within the manufacturing sector.

Q

• Qatari Riyal (QAR)
  Qatar’s national currency.
• Quantitative Easing (QE)
  A monetary policy used by central banks to lower interest rates and increase the supply of money.
• Quote Currency
  Also known as Counter Currency, this is the second currency that appears in a forex pair.

R

• Rally
  A significant rise in an asset’s price, indicating bullish momentum.
• Range
  The difference in an asset’s high and low price over a specific timeframe.
• Ranging Market
  A term for when an asset continuously moves between its high and low prices, with no clear direction.
• Re-Quote
  An alternative price given by a broker when they are unable to execute a trade at the original price. This most often happens in highly volatile markets.
• Real Body
  The main rectangular body of a candlestick.
• Realised Loss
  The loss a trader makes on a closed trade.
• Realised Profit
  The profit a trader makes on a closed trade.
• Recession
  A long period of economic decline.
• Record Day
  The cut-off date used to determine which shareholders are entitled to a corporate dividend. The record date will usually be the day following the ex-dividend date, which is the trading date on (and after) which the dividend is not owed to a new buyer of the stock.
• Rectangle
  A formation that indicates the continuation of a trend.
• REKT
  A slang abbreviation for the word ‘wrecked’ used to describe a losing trade that erases the entirety of a trader’s investment.
• Relative Strength Index (RSI)
  A technical indicator used by traders to identify when a market is overbought or oversold.
• Relative Vigor Index (RVI)
  A technical indicator that helps traders measure the strength of a trend and the chances it will continue.
• Reserve Bank of Australia (RBA)
  Australia’s central bank.
• Reserve Bank of New Zealand (RBNZ)
  New Zealand’s central bank.
• Reserve Currency
  Money held by banks to settle debts, trade assets, and manage exchange rates.
• Resistance Level
  A price level on a chart that an asset struggles to move above.
• Retail Sales
  An indicator used to assess consumer spending patterns. It measures the value of products sold in the retail sector.
• Retracement
  When an asset’s price moves in the opposite direction to the prevailing trend.
• Reversal Pattern
  A pattern that shows a change in direction from the prevailing trend.
• Reverse Stock Split
  A process by which shares of corporate stock are effectively merged to form a smaller number of proportionally more valuable shares. A reverse stock split is also called a stock merge.
• Reverse Takeover
  A process whereby private companies can become publicly traded companies without going through an initial public offering (IPO). More specifically a private company buys enough shares to control a publicly traded company.
• Right Issue
  An offer to existing shareholders to purchase newly issued stock, a right which they can either exercise or sell in the open market.
• Risk Aversion
  The reluctance to take on trades that are deemed to be risky.
• Risk Capital
  Funds a trader is willing to invest and is comfortable losing in the event the market goes against them.
• Risk Management
  The process of handling the risk associated with trading. Having a good risk management strategy is important for all traders.
• Risk Tolerance
  Describes to what extent a trader is willing to take risks in the market.
• Risk/Reward (R/R)
  A ratio comparing the potential profit from a trade with the amount of risk involved.
• Rollover
  When a position is held overnight.
• Rollover Fee
  A fee traders are subject to when keeping a position open overnight. Whether they earn or pay the fee depends on the direction of their position and the interest rate difference between the currencies in the pair being held.
• Romanian Leu (RON)
  Romania’s national currency.
• Round-Trip Trading
  The act of repeatedly buying and selling an asset to increase transaction volumes, often with the intent to manipulate observers into believing that the asset is in higher demand than it actually is.
• Russell 2000
  A small-cap stock market index that makes up the smallest 2,000 stocks in the Russell 3000 Index.
• Russian Ruble (RUB)
  Russia’s national currency.
• Rwandan Franc (RWF)
  Rwanda’s national currency.

S

• S&P 500 Index
  A stock market index that tracks the performance of 500 of the largest US companies.
• Safe Haven
  An asset that traders consider to be stable and likely to hold its value during highly volatile periods. Gold is often considered to be a safe-haven investment.
• Saint Helena Pound (SHP)
  Saint Helena’s national currency.
• Samoan Tālā (WST)
  Samoa’s national currency.
• Saudi Riyal (SAR)
  Saudi Arabia’s national currency.
• São Paulo Stock Exchange (BOVESPA)
  Based in Sao Paulo, Brazil, it was founded in 1890 as Bolsa de Valores de São Paulo (BOVESPA) and it is now part of B3 SA or otherwise Brasil, Bolsa, Balcão.
• São Tomé and Príncipe Dobra (STD)
  São Tomé and Príncipe’s national currency.
• Scalping
  A strategy wherein a trader opens and closes many trades in a single session, to attempt to profit from small price movements.
• Secondary Trend
  A price movement that temporarily changes the direction of the prevailing trend.
• Securities and Exchange Commission (SEC)
  The federal agency responsible for regulating the US securities markets.
• Sell Limit Order
  A sell order that is activated when an asset reaches a specific price.
• Sell Stop
  An order entered at a price below the current market price. If the price drops to the stop price (or trades below it), the stop order to sell is triggered and becomes a market order to be executed at the market’s current price.
• Sentiment
  Traders’ feelings and expectations for an asset, market, or economy.
• Sentiment Indicator
  An indicator that displays the positional direction percentage (i.e. percentage long vs percentage short) of a subset of traders on a given asset.
• Serbian Dinar (RSD)
  Serbia’s national currency.
• Settlement Price
  The official daily closing price of a futures contract, set by the exchange for the purpose of settling margin accounts.
• Seychellois Rupee (SCR)
  The Seychelles’ national currency.
• Shadows
  Also known as wicks, they are the lines that extend above and below the main body of a candlestick, showing the highest and lowest prices reached by an asset, within a candlestick’s given timeframe.
• Share
  Also known as a stock, this is an asset that affords a trader a certain percentage of ownership in a publicly listed company. The price of a share changes based on supply and demand.
• Shooting Star
  A bearish pattern that is normally seen in an upwards moving market and indicates the reversal of a trend.
• Short Position
  Also known as Going Short, this is when a trader sells an asset expecting its price to fall.
• Short Squeeze
  A rapid increase in the price of a stock owing primarily to an excess of short selling of a stock rather than underlying fundamentals.
• Short-Term Trader
  Describes a trader who opens and closes all their trades in a single day.
• Sierra Leonean Leone (SLL)
  Sierra Leone’s national currency.
• Signal Line
  A buy or sell signal created by using a combination of technical indicators.
• Simple Moving Average (SMA)
  Represents the change in an asset’s average price over a specific timeframe.
• Singapore Dollar (SGD)
  Singapore’s national currency.
• SIX Swiss Exchange
  Switzerland’s principal stock exchange.
• Slippage
  The difference between the price a trader expects to receive on a trade and the price it is executed at. Slippage tends to occur in highly volatile markets.
• Social Trading
  When traders share their trade activity online, allowing the community to comment on and copy their strategies.
• Soft Landing
  A strategy used by the Federal Reserve to prevent inflation or a recession while maintaining economic growth.
• Solomon Islands Dollar (SBD)
  The Solomon Islands’ national currency.
• Somali Shilling (SOS)
  Somalia’s national currency.
• South African Rand (ZAR)
  South Africa’s national currency.
• South Korean Won (KRW)
  South Korea’s national currency.
• South Sudanese Pound (SSP)
  South Sudan’s national currency.
• Speculative Attack
  When a currency is sold excessively, resulting in its depreciation.
• Speculator
  Describes a trader who places trades expecting greater profits but does not hedge their positions.
• Spike
  A surprisingly large price movement that is short-lived.
• Spinning Top
  A candlestick characterised by a small body and long wicks that indicates the reversal of a trend.
• Spinoff
  The creation of a new independent company by selling or distributing new shares of its existing business.
• Spot Market
  A public financial market where assets are traded for immediate delivery.
• Spot Price
  The price at which an asset can be traded at a specific time.
• Spread
  The difference between the sell (bid) and buy (ask) price of an asset.
• Spread Betting
  A derivative product that allows traders to speculate on the price of assets, without taking underlying ownership.
• Square
  Slang term used to describe traders with no open trades.
• Squaring Up
  Slang term for closing a trade.
• Sri Lankan Rupee (LKR)
  Sri Lanka’s national currency.
• Standard & Poor’s (S&P)
  A leading US financial services provider that is known for the popular S&P 500 stock market index.
• Standard and Poor’s 500 (S&P 500)
  A stock market index tracking the stock performance of 500 large companies listed on stock exchanges in the United States.
• Stick Sandwich
  A bullish formation that features three candlesticks and indicates the reversal of a trend.
• Stochastic Oscillator (Stoch)
  A technical indicator that helps traders identify market divergences, as well as overbought and oversold conditions.
• Stock
  Also known as a share, this is an asset that affords a trader a certain percentage of ownership in a publicly listed company. The price of a share changes based on supply and demand.
• Stock split
  An issue of new shares in a company to existing shareholders in proportion to their current holdings.
• Stocky
  A common nickname for the Swedish krona.
• Stoller Average-Range Channels (STARC)
  A technical indicator that forms a channel around a simple moving average to indicate if an asset is approaching support and resistance levels.
• Stop Hunting
  An unethical strategy used by some financial institutions wherein they manipulate price movements as an attempt to trigger retail traders’ stop-loss levels, forcing them out of the market.
• Stop Loss Order (SL)
  An order that is set to close a trade at a specific price level to reduce losses from unfavourable price movements.
• Stop Order
  An order that is triggered when an asset reaches or surpasses a specific price point. Beyond that price point, a stop order is converted into a market order that is executed at the best available price.
• Stop Out
  When a trader’s positions are closed automatically because the equity in their account falls below the amount required to cover the margin for their open positions. Also known as a margin closeout.
• Straddle
  A strategy that involves using limit orders to trade major movements in price in either direction.
• Straight-Through Processing (STP)
  When trades are sent straight to the market to be executed, with no dealing desk intervention.
• Sudanese Pound (SDG)
  Sudan’s national currency.
• Support Level
  A price level on a chart that an asset struggles to move below.
• Surinamese Dollar (SRD)
  Suriname’s national currency.
• Swap Fee
  A fee that results from having a trade open overnight. The size of a swap fee depends on the markets’ direction. It’s also known as a rollover fee.
• Swedish Krona (SEK)
  Sweden’s national currency.
• Swing Trading
  A medium-term strategy used by traders to try and benefit from swings in market prices. Swing traders usually hold trades open for anywhere between two days and a few weeks.
• Swiss Financial Market Supervisory Authority (FINMA)
  Switzerland’s financial regulatory authority.
• Swiss Franc (CHF)
  Switzerland’s national currency.
• Swiss National Bank (SNB)
  Switzerland’s central bank.
• Swissy
  A common nickname for the Swiss franc.
• Symmetrical Triangle
  A formation used as an indicator of price consolidation.
• Syrian Pound (SYP)
  Syria’s national currency.
• Systematic Risk
  Market risk due to circumstances that cannot be offset by diversification.

T

• T+2 Settlement Process
  T+2, an abbreviation for ‘trade plus two days’, is a settlement cycle wherein traders have to ‘settle’ their transactions within two business days.
• Tajikistani Somoni (TJS)
  Tajikistan’s national currency.
• Take a Flier
  A term describing a trade selected without adequate preparation, in the hopes of a large return.
• Take Profit Order (TP)
  An order that automatically closes a trade at a specific price level to save any profits earned.
• Takeover Bid
  A company makes an offer to purchase another company, known as the acquirer, while the subject of the bid is referred to as the target company. The acquirer generally offers cash or stock, or a combination of both for the target.
• Tanzanian Shilling (TZS)
  Tanzania’s national currency.
• Technical Analysis (TA)
  A type of market analysis that uses the historical performance of assets as a guide to predicting future price movements.
• Technical Analyst
  Also known as a Chartist, a technical analyst is a trader who looks at an asset’s past price movements to help identify new and emerging market trends.
• Technical Indicator
  A mathematical tool that uses the historic performance of assets to help predict future trends, volatility, and price movements.
• Thai Baht (THB)
  Thailand’s national currency.
• The Stock Exchange of Hong Kong
  A stock exchange based in Hong Kong. It is reported as the fastest growing stock exchange in Asia.
• Thin Market
  Also known as a Narrow Market, this is when there are a few trades placed on a specific asset. This can result in a higher cost to trade the asset in question.
• Three Black Crows
  A bearish pattern that indicates the reversal of a trend.
• Three White Soldiers
  A bullish pattern that indicates the reversal of a trend.
• Tick
  The difference between an asset’s current price and its previously quoted price.
• Time of Day Order
  A type of order that automatically buys or sells an asset at a specific time in the trading session.
• Timeframe
  A period of time in which traders open market positions.
• Tongan Paʻanga (TOP)
  Tonga’s national currency.
• Toronto Stock Exchange (TSX)
  The Canadian stock exchange located in Toronto, Canada.
• Trade Deficit
  Describes countries that have more imports than exports.
• Trade Surplus
  Describes countries that have more exports than imports.
• Trading Desk
  The department in a financial institution that is responsible for trading the markets.
• Trading Journal
  Details of a trader’s activity in the markets.
• Trading Platform
  The programme provided by brokers that enables traders to access the markets.
• Trading Psychology
  Describes human emotions and the role they play in trading the markets.
• Trading Robot
  Also known as an Expert Advisor, it’s a computer algorithm that allows traders to automate their trading strategy.
• Trading Signal
  A suggestion of an asset’s future price movement derived from analysing recent data.
• Trading Ticket
  Also known as a Deal Ticket, it records all the details of a trade.
• TradingView Charts
  A leading charting solution integrated into Trading.com’s Webtrader platform, TradingView Charts offer advanced technical analysis tools, real-time data, and direct trade execution from the chart for a seamless trading experience, optimized for both desktop and app.
• Trailing Stop (TS)
  A dynamic stop-loss order that protects profits earned from a trade by following the market price if it continues to move favourably. In the case of a losing trade, it can also be used to help limit losses.
• Trend
  The current direction an asset’s price is moving in.
• Trend Analysis
  Using technical analysis to help predict future price movement by analysing recent data.
• Trend Line (TL)
  A line that is often drawn by the trader on an asset’s highest and lowest closing prices, within a given timeframe, to provide a visualisation of the prevailing direction of price. It can also help identify support and resistance levels.
• Trinidad and Tobago Dollar (TTD)
  Trinidad and Tobago’s national currency.
• Triple Bottom
  A bullish formation that indicates the reversal of a trend.
• Triple Witching
  The last hour of the stock market trading session on the third Friday of every March, June, September, and December. Those days are the expiration of three kinds of securities: Stock market index futures, Stock market index options, and Stock options.
• True Strength Index (TSI)
  A technical indicator that helps traders identify overbought and oversold markets by analysing market momentum.
• Tunisian Dinar (TND)
  Tunisia’s national currency.
• Turkish Lira (TRY)
  Turkey’s national currency.
• Turkmenistan Manat (TMT)
  Turkmenistan’s national currency.
• Turning Point
  Also known as a Fulcrum Point, it is a specific point on a chart where the market trend changes direction.
• Tweezers
  A pattern characterised by multiple consecutive candles that touch the same top or bottom and indicates the reversal of a trend.

U

• Ugandan Shilling (UGX)
  Uganda’s national currency.
• Ukrainian Hryvnia (UAH)
  Ukraine’s national currency.
• Ultimate Oscillator
  A technical indicator that uses weighted average across three timeframes to provide a more accurate idea of price action.
• United Arab Emirates Dirham (AED)
  The United Arab Emirates’ national currency.
• United States Dollar (USD)
  The United States’ national currency.
• Unrealised Loss
  Loss from a trade that has yet to be liquidated. Also known as floating loss.
• Unrealised Profit
  Profit from a trade that has yet to be liquidated. Also known as floating profit.
• Unsystematic Risk
  The level of risk that impacts specific assets but not the market as a whole. Also known as idiosyncratic risk.
• Uruguayan Peso (UYU)
  Uruguay’s national currency.
• US Dollar Index (USDX)
  An index that tracks the value of the US dollar against that of a basket of other currencies from major trading partners.
• Uzbekistani Som (UZS)
  Uzbekistan’s national currency.

V

• Value Date
  Also known as Delivery Date, this refers to the date on which a contract matures.
• Vanuatu Vatu (VUV)
  Vanuatu’s national currency.
• Velocity
  The speed at which the price of an asset changes.
• Venezuelan Bolívar (VEF)
  Venezuela’s national currency.
• Vienna Stock Exchange (WBAG)
  The sole securities exchange in Austria and operates the market data hub for Central and Eastern European markets.
• Vietnamese Dong (VND)
  Vietnam’s national currency.
• Virtual Balance
  A term used to describe the balance of a trader’s practice or demo account.
• Virtual Private Server (VPS)
  A service provided by a cloud or hosting provider that allows traders to run their automated algorithms 24/7 without any downtime.
• Volatility
  A measure of how likely an asset’s price is to move between highs and lows.
• Volume
  The amount of an asset that is being traded over a specific timeframe.
• Volume-Weighted Average Price (VWAP)
  A technical indicator that shows the ratio of an asset’s price in relation to its overall trading volume. It indicates the average price an asset is traded at over a specific timeframe.

W

• Weak Shorts
  A term used to describe traders who quickly close their sell trades at the first sign of a trend reversal.
• Wedge
  A pattern that indicates a reversal in the prevailing trend.
• West African CFA Franc (XOF)
  The national currency of eight independent West African states, including Ivory Coast, Senegal, and Togo.
• Whipsaw
  A term used to describe a large price movement in one direction that is quickly followed by an equal or larger movement in the opposite direction.
• Wicks
  Also known as Shadows, they are the lines that extend above and below the main body of a candlestick, showing the highest and lowest prices reached by an asset, within the candlestick’s given timeframe.
• World Bank (WB)
  An international organisation that supports the economic growth of developing countries.

X

• XAG
  The abbreviation or ISO code used for silver on trading platforms.
• XAU
  The abbreviation or ISO code used for gold on trading platforms.

Y

• Yard
  Slang that refers to a billion units of a specific currency.
• Yemeni Rial (YER)
  Yemen’s national currency.
• Yield
  The income earned from an investment, often in interest or dividends.
• Yuppy
  A common nickname for the EURJPY pair.

Z

• Zambian Kwacha (ZMW)
  Zambia’s national currency.
• Zcash (ZEC)
  Zcash (ZEC) is a privacy-focused cryptocurrency that aims to provide enhanced privacy and security for its users. It uses cutting-edge cryptography to enable shielded transactions, where the sender, recipient, and transaction amount are all encrypted. This privacy feature sets Zcash apart from other cryptocurrencies, as it offers users the option to transact with enhanced anonymity. Zcash also supports transparent transactions, allowing users to choose between privacy and transparency based on their needs.
• Zombie Currency
  A currency that is no longer in use having suffered massive inflation but has yet to be officially replaced.

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