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Trader's glossary
Feel free to consult this alphabetically ordered glossary of the fundamental trading terms
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A
Abandoned Baby

It is a three bar reversal pattern candlestick formation, it is similar to the morning and evening star formations and it is very reliable reversal signal when it occurs after a sharp rise or a drop. the abandoned baby is a rapid shift momentum from the bulls to the bears or vice versa and typically catches the other side off guard.

Account Statement Report

This report is a record of all transactions made in a trading account over a specific period of time.

Account Value

The net worth of the client’s account.

Address

The term is used in cryptocurrencies transactions. it is a secure identifier marked by a unique string of characters that enables payments to an individual or entity. it usually requires a private key to exclusively access the funds.

ADDY

Used in cryptocurrencies transactions. it is a person’s cryptocurrency wallet public address, also known as a key.

ADP Non-Farm Employment Change

A u.s. report measuring the non-farm private employment. it is developed and used to aid and meet the need for accurate and timely estimates of the short-term movements in the labor market. more information you can find here. (http://www.adpemploymentreport.com/)

Advance/Decline Index

It is a tool used to confirm that the trend is continuing. if the trend has kept its movement for a relatively long period of time in declining manner, it is a sign that it might see a reversal in the near future. the index is calculated by subtracting the number of declining prices from the number of advancing security prices.

Aggregate Demand

The sum of government spending, personal consumption expenditures, and business expenditures.

Altcoin

It is a term used for other cryptocurrencies than bitcoin. many of them are variations (forks) of bitcoin. the term is a combination of two words: “alt” and “coin” with the respective meanings “alternative” and “currency”.

Analyst

Generally the analysts can be divided into to types - fundamental and technical.

Fundamental analysts - they examine the underlying forces that affect the wellbeing of the economy, industry groups, and companies. the goal is to derive a forecast and profit from future price movements.

Technical analysts - analysts identify investments and trading opportunities by analyzing statistical trends gathered from trading activity, such as price movement and volume. the main focus is on the patterns of the price movements, trading signals, and various other analytical charting tools to evaluate a security’s strength or weakness.

Anti-Money Laundering

It describes the set of procedures, laws, and regulations requiring financial institutions and other regulated entities to detect and report money-laundering activities. the term is used in the financial industry.

The aml regulations require companies when allowing customers to open trading accounts to conduct a due-diligence procedure in order to ensure that money-laundering activities are not supported by them.

Appreciation

When the currency strengthens in price in response to the market demand or it could be also seen as an increase in the value of general assets.

Arbitrage

Taking an equal and opposite position at the same time to benefit from small price differences between related markets.

Ascending Trend Channel

It is a chart pattern used in technical analysis. they are useful because they can be used to predict the overall changes in trend. if the prices remain within the ascending trend channel, the upwards trend can be expected to continue. immediately after the price exceeds either trend line forming the channel - a strong signal either to buy or to sell is produced. upper trend line break - produces a strong buy signal, lower trend line break - produces strong sell signal.

Ask price

Or the offer is the price at which a security, commodity or currency is offered for sale on the market.

Asset/Underlying Asset

Any good that has an underlying exchange value.

Asset Purchases

Also known as quantitative easing a macroeconomics term. in some particular national events, asset purchases usually pertain to the purchasing of government bonds to lower interest rates, inject capital into the economy or both. it is a monetary policy used by a central bank to stimulate the economy.

Asset Allocation

Or diversification of funds. a very common practice used by every investor or a trader. "never place all of your eggs in one basket" - it is a risk management tool to achieve the consistency in the expected returns for the investors.

Asymmetric Encryption

A type of encryption in the crypto world involving two keys: (1) private and (2) public keys. a message that is encrypted with the private key must be decrypted with the public key and vice versa. the public key is easily derived from the private key but the reverse is nearly impossible.

ATH

Ath is the acronym for “all time high”. the cryptocurrency is trading at the highest price it has ever achieved.

ATM (At-The-Money)

An option whose exercise or strike price is equal to the current market price of the underlying asset.

Austerity

A set of economic policies which are used by the government to control public sector debt. this might involve, reduction in government spending in order to lower the deficit, wage cuts or tax hikes - making sure their creditors that they will be able to pay back their loans.

Available Margin

The actual funds which are available for trading in the account (not associated with an open position).

B
Bags

Are cryptocurrencies or stocks that have plummeted in value from their ath (an all-time high).

Bag Holder

This is an investor or trader who has been holding (or holding) a particular cryptocurrency or a stock for too long, which stock or cryptocurrency has decreased in value until is worthless.

Bail-in

The term was coined after the crisis by bankers who wanted to assure the public that the biggest lenders could survive without any more taxpayer handouts. i.e. the rescue of a financial institution that is on the brink of failure whereby creditors and depositors take a loss on their holdings.

Bailout

A financial term defining a situation in which a business, an individual or a government offers money to the failing business to prevent the consequences of its downfall.

Balance

The total amount of funds available in your trading account, excluding p&l (profits and losses) of presently open positions.

Balance of Trade (BOT)

The difference in value between a country’s imports and its exports for a given period.

Bank Levy

Is a situation when your bank account gets frozen while the money in your account gets taken away from you. this normally happens when you do not pay your taxes or debt.

Bar Chart

A type of investment chart used in the forex, that shows the range of prices of a security over a given period in time. it has four major points- the high and low prices which form the vertical bar, the opening price marked on the left side of the bar, and the closing price marked on the right.

Base Currency

Also called the transaction currency is the first currency in a currency pair followed by the second part of the quotation, called quote currency or counter currency. it compares the values between the first currency and the second currency in a currency pair.

Basis Point (BPS)

One percent of one percent. a common unit of measure for interest rate and other percentages in finance. one bp is equal to 1/100th of 1%, or 0,01%, or 0,0001.

Bear

A person who believes that prices will decline.

Bear Market

A market in which prices are noticeably declining.

Bear Trap

It is a technical pattern that occurs when the performance of a stock or of an index incorrectly signals a reversal of a rising price trend. simply said, a manipulation of financial instruments like crypto, stock or commodity by investors. traders who "set" the bear trap do so by selling the instrument/s asset/s until it fools other investors into thinking its upward trend in value has stopped or is dropping.

Bearish

The term is used to describe that investor’s, or group’s, outlook on an asset is negative (i.e., that the asset will fall in value).

Bearish Engulfing Pattern

A technical chart pattern that may signify a future bearish trend. the pattern can be described by the existence of small white candlesticks with short shadows or tails followed by a large black candlestick that eclipse or “engulfs” the small white ones.

Bearish Reversal Candlestick Pattern

The bearish reversal candlestick patterns comes in over 12 different forms. these include the abandoned baby, the bearish engulfing pattern, the harami, the dark cloud cover, the evening star, and the shooting star. bearish reversal candlestick patterns should form in an uptrend and most will require bearish confirmation as reinforcement of the pattern. the usage of additional analysis is highly recommended to support your findings.

BearWhale

A trader with a considerable amount of capital who is bearish (believes the price will fall) on the price of a particular instrument.

Bid Price

The price for which the market maker will buy the base currency. it represents the highest price an investor is willing to pay for a share.

Bid-Ask Spread

The difference between the highest price that a buyer is willing to pay for an asset and the lowest price that the seller is willing to accept to sell it.

Biflation

Is a phenomenon where both inflation and deflation occur at the same time. it results when inflation in commodity assets coexists deflation in debt-based assets.

Big Mac PPP

Known also like the big mac purchasing power parity. economists are using it to show the relative overvalue or undervalue of currencies based on the relative price of a big mac in that particular country or various other countries around the world.

Bitcoin

A digital currency created in early 2009, by satoshi nakamoto, whose identity is currently still not verified. you can't hold the digital currency in your hand as you would with a traditional currency. bitcoin is a decentralized currency, meaning it is not controlled by a single entity (like a central bank). it promises lower transaction fees than traditional online payment mechanisms.

Bitcoin Cash

Is a peer-to-peer electronic currency created the fall of 2017. it is fully decentralized, with no central bank and requires no trusted third parties to operate. it is a variation (fork) of bitcoin classic.

Block

General meaning - it is a large order of the same financial instrument to be bought or sold by investors. for cryptocurrencies - a bundled together collection of data related to transactions, with a predetermined size and are processed for transaction verification which eventually becomes part of the blockchain.

Block Explorer

A term used in the crypto world, it represents a program or a website, which can be accessed only through a particular compatible browser, allowing the user to search and navigate the blocks of the blockchain, their contents, and their details.

Block Height

The height of a particular block is defined by the number of blocks preceding it in the blockchain.

Block Reward

It is a reward given to every eligible cryptocurrency miner. they receive it for the successful mining of each newly created block in the blockchain network of the particular cryptocurrency. as an example, for mining a bitcoin block, the reward is of 12.5 bitcoins per mined block, which halves every 210,000 blocks.

Blockchain

A blockchain is decentralized, digital ledger where transactions made in bitcoin or other cryptocurrencies are recorded chronologically and publicly. in other words, simply a chain of blocks. blocks containing digital information, stored in the public database - the chain.

Blue Chip

The stock of a nationally recognized, well-established and financially stable company. these companies are known as game changers and operate profitably during unstable economic times.

Bond Auction

A government bond auction is the process of selling short and long-term government bonds to investors in an attempt to minimize the cost of financing its national debt. the process starts with the central bank announcing how much money it intends to borrow. details like the term length of the bonds and the date of the auction are included in the announcement.

Bond Yields

Refers to the return or interest paid to the bondholder. it is the premium that investors are paid for holding on to government or corporate debt. the bond yields can be defined in different ways based on the different types of issued bonds. traders should be paying attention to the bond yields because they reflect the investors' confidence.

Book

An overall summary of a trader’s positions.

• breakeven point (bep)- is the market price of an instrument is equal to the original cost. in terms of forex, the market price that an underlying asset must be reached for a cfd buyer to avoid a loss if they are active with the asset.

Breakout

Can be a really profitable trading opportunity. it refers to the particular financial instrument's price movement through a historical resistance level. normally this situation results from heavy trading volume and increased volatility.

Bretton Woods Agreement of 1944

An agreement established a new global monetary and exchange rate management system replacing the gold standard with the us dollar as the global currency. under the agreement, currencies were pegged to the price of gold, and the us dollar was seen as reserve currency linked to the price of gold. the exchange rate system lasted until 1971 when the u.s. finally decided to end the conversion of the dollar to the gold.

Broker

An agent or company who executes orders to buy and sell currencies and related instruments for their clients for defined fees and commissions (spreads);

BTD

Is an acronym for “buy the dip “. it’s spoken between traders to suggest buying a specific financial instrument during a decline in prices.

Bull

An investor who believes that the market, a specific industry or a particular financial instrument is poised to rise in value.

Bull Market

A market characterized by rising or expected to raise prices.

Bull Trap

A false signal indicating that a declining trend in a financial instrument, like crypto, stock or a commodity is reversed and is heading upwards when, in fact, the particular instrument will continue to decline. the result is of the creation is a falls bull market.

Bullish

The term is used to describe that investor’s, or group’s, outlook on an asset is optimistic (i.e., that the asset will rise in value).

Bullish Engulfing Pattern

A technical chart pattern that may signify a future bullish trend. the pattern can be described by the existence of small black candlestick which is followed the next day by a large white candlestick with a body overlapping or “engulfing” the body of the previous day’s candlestick. it signifies a reversal trading pattern that normally occurs after a major downtrend.

Bullish Reversal Candlestick Pattern

It has over 14 different pattern styles. these include the bullish engulfing, the piercing pattern, the harami, the hammer, the inverted hammer, the morning star, and the abandoned baby. to use this tools successfully, look for the pattern in a downtrend and use bullish confirmation to validate your analysis. the usage of additional analysis is highly recommended to support your findings.

Bundesbank

German’s central bank

Buying Pressure

It occurs when the majority of traders are buying i.e. more buying orders than selling orders outstanding, indicating the majority think the market price will increase. when there is a buying pressure, prices rise. when there is a selling pressure, stock prices fall.

C
Cable

Slang for the gbp/usd currency pair. the term is most frequently heard in trading rooms.

Camarilla Pivots

Is a math-based price action analysis tool that generates potential support and resistance levels, similar to pivot points, using the previous day's high price, low price, and closing price.

Cambist

An individual - expert in foreign exchange rates. additionally, the term is used for the currency exchange manual which lists exchange values.

Candlestick charts

Originated in japan. type of chart used to indicate the trading range for the day and opening/closing prices. the daily candlestick line contains the currency’s value at open, high, low, and close of a specific day. the candlestick has a wise part called “real body”, representing the range between the open and close of that particular day trading. if the body is black - the close was lower than the open. if the body is white - the close was higher than the open.

Carbon Credits

Carbon credits pertain to the right to emit a certain volume of greenhouse gases. it is a certificate provided to business and companies to limit the emissions of greenhouse gases into the atmosphere. the current measure is that one ton of c02 (or c02 equivalent gases) is equal to one carbon credit.

Carry Trade

A trading strategy involving borrowing at a low interest rate to fund or buy higher-yielding financial instruments.

Cash Market

Also known as the spot market, is the marketplace where the transactions of commodities and securities are settled. the exchange of goods and money between buyers and sellers takes place in the present. in contrast to the spot market, the futures market the exchange takes place on a specific future date.

Chaikin Oscillator

The chaikin oscillator was developed by marc chaikin to compare volume and price levels for an asset. it can be used to indicate when an asset is overbought or oversold and thus to indicate upcoming reverses.

Chartist

A person who is using charts and graphs in order to trade, also known as a technical trader.

Circulating Supply

In the crypto world the term represents an approximation of the number of coins or tokens circulating in the public market.

Cleared Funds

Freely available funds.

Clearing

The procedure of settling a trade between buyers and sellers on the market.

Clearing Price

The actual monetary value given to an asset. the price or value is determined by the buy-sell process. in other words, the interaction between supply and demand forces define the clearing price.

Client

Or an account holder. a trader who is using brokerage services to make transactions.

Closed Position

Or position squaring, is a position that has been terminated or ended. in other words, the executing transaction opposite to an open position. when a trader closes a long position in a financial instrument means selling it, while closing a short position means buying the instrument back.

Cloud Mining

Is the process of mining cryptocurrency without the installation of all the hardware by using shared hardware output from remote data centers.

Cold Storage

The process of storing and moving your cryptocurrencies “offline”. i.e. the digital wallet is placed in a platform not connected to the internet for security reasons.

Collateral

Something of value lent to act as a guarantee of performance. the collateral offers some security to a lender, therefore, the financial instrument backed by a collateral, normally have a lower interest rate than unsecured such. in margin trading, the financial instruments in your trading account act as a collateral in case of a margin call.

Commercial corporations

Differ from other market participants by being part of the 10% of market players who do not participate in the forex markets in the search for profit. instead, they do so for the sake of hedging risk. these corporations make transactions in both: the futures and spot markets for their daily operations, in order to be able to pay suppliers for raw materials, as well as to pay employees from different countries.

For instance, corporation x (an eu based company) needs to buy coffee beans from brazil but needs brazilian reals to complete the transaction. the company will then buy brl at the spot market so that they can complete the transaction.

Commission

A transaction fee charged by a brokerage company.

Commodity

Is an interchangeable basic good in the commercial market or exchange market. it can be exchanged with other commodities of the same type. they are most often used as an input in productions. typical commodities are oil, metals, food, etc.

Confluence

In trading - when a few technical indicators provide identical trading signals, leading to a greater accuracy and profitability. the term is also used when combining a few strategies to form one complete strategy, which is in line with the investor’s risk profiles and goals.

Consolidation

A technical analysis term illustrating the lack of a trend in a particular trading range. normally follows downtrends or uptrends seen as a stretch of uncertainty. consolidation is considered as closed when the price goes beyond the support and resistance lines.

Contagion

Is the spread of market deviations or disturbances from one market to others. it also can be seen as the dissemination of economic booms or crises to a particular geographic area. it occurs on a global and domestic level, however, with the growth of the global economy and the increased correlation between certain geographic regions the phenomena becomes noticeable.

Contract for Difference (CFD)

The term is used in finance, it is a contract between buyers and sellers to exchange the difference in value on a financial instrument for a given period having an open and close time of the contract. cfd provides the investors with an opportunity to trade with a financial instrument without actually holding or owning it, this opportunity simultaneously caries all the benefits and risks, which the particular financial instrument carries.

Convergence

Is the process of futures and spot prices approaching one another. typically, the contract price of a futures contract is higher than the current price of the particular asset due to the effect of the time value of money. as close to the expiration date we approach, as smaller the difference between the two prices becomes. on the delivery date of the contract, both prices should be equal.

Correlation

Shows the degree to which two financial instruments move in relation to each other. the typical implication of the correlation is in advanced portfolio management. the tool is called a correlation coefficient. when the correlation is positive (+) - it suggests that asset x will move in the same direction as asset y. when it is negative (-) - asset x will move in the opposite direction of asset y.

Counter Currency

The second currency in a currency pair. it is also known as the quote currency.

Country Risk

The added risk from international investments. the country risk normally varies from country to country and can include in itself the following: political risk, exchange-rate risk, economic risk, and transfer risk. it actually shows how likely is a particular country to default on its debts.

Cover

Any action reducing the investor's risk exposure based on a well-diversified portfolio.

Cover on a Bounce

It is a strategy term. it occurs when a trader is waiting long enough a financial instrument to go low enough and hit a support level, following a brief bounce, and continuing to go slightly lower to correct for the bounce, and finally closing the short position at this low point. this indicates traders that the price will go slightly lower for correcting the bounce but not majorly lower. however, this indicator is recommended to be used along with other analysis to support the indications.

Cover on Approach

The action of closing out a profitable short position as the security reaches a certain level of support. this move is conservative in that a trader cuts profit at a point in which he/she can still gain more profit.

Credit Rating

In trading, the credit ratings are commonly referred to as sovereign debt, or it might be to bonds, issued by governments to finance public projects or services. like every other security, traders are following the credit ratings in order to determine the ability of the debt issuer to pay its liabilities. normally, credit ratings are expressed by aaa, bb-, c, or d.

Credit Rating Agency

The evaluation of credit risk is normally executed by agencies such as standard & poor’s (s&p), moody’s, or fitch. they provide information on how liable is the debt issuer in fulfilling its debt obligations. debt issuer may be companies, banks, or governments. these agencies are paid by the entity seeking a credit rating or for one of its debt issues.

Credit risk

The negative chance of loss that an individual, a company, a government, or other institution may encounter by not receiving the owed principal or interest, affecting that entity’s cash flow or work process.

Cross currency Transaction

A pair of currencies in forex, where neither of them includes the u.s. dollar. both currencies are traded directly against each other without the need first to be converted into u.s. dollars.

Cross Currency Pairs

A couple of currencies in which one currency is traded against another.

Cross Rate

An exchange rate between two currencies, usually constructed from the individual exchange rates of two currencies, and when neither of those currencies is the official currency of the country where the exchange rate quote is given.

Crude Oil Inventories

Also known as crude stockpiles are reserves of unrefined petroleum measured in barrels. out of the inventories is produced a report, which is one of the major indicators for smoothing out the impact of changes in supply and demand. one of the most popular such reports is the u.s. crude oil inventories report measuring the weekly changes in the number of barrels of commercial crude oil held by u.s. firms. the inventories are normally affected by the following events: opec production decisions, tax policy changes, political events, and other. when the level of inventories is high- the oil price is led to lower levels and vice versa.

Cryptocurrency

A cryptocurrency is a digital currency that uses a blockchain relying on cryptography for security. through the blockchain, individuals can transact directly with each other. cryptocurrencies are decentralized because they don`t need a third party like a bank to carry out transactions between individuals.

Cryptography

"crypto" means concealed or secret, in our case anonymous. the cryptography guarantees the security of the transactions and the participants. it is used with a few purposes: to secure the various transactions occurring in the network; to control the generation of new currency units (a process is also known as mining); for verification of the transfer of digital assets and tokens.

Cup with Handle

It is a price pattern on bar charts representing a cup with a handle. cup is “u” shaped, and the “handle” is a slight downward drift (this side shows typically a low trade volume). this pattern is considered as bullish continuation pattern used to identify buying opportunities.

Currency

The generally accepted form of money used by a government and circulated within an economy.

Currency Basket

It is a set of currencies where the weighted average is used as a measure of the value or the amount of obligation. the basket functions as a benchmark of the regional currency movements. it is used for minimizing the risk of currency fluctuations.

Currency Codes

Are the letter abbreviations identifying a country’s currency, established by the international organization for standardization (iso).

Currency Manipulation

It is a class of market manipulation which could be solely executed by central banks or governments. it is an act of changing the owned currency value against other currencies instead of leaving it to fluctuate freely. the manipulation can be done by fixing the currency or deliberate increase or decrease of its value. such intervention is not recommendable as a long-term tool due to the possibility of causing a global trade imbalance as a result.

Currency Pair

It is a composition of two parts: base currency and counter currency (quote currency). its purpose is to express the value of one currency being quoted against the other. it indicates how much of the quote currency is required to purchase one unit of the base currency. in the financial market, there are about 10 major currency pairs called "majors", they make up the largest share of the foreign exchange market and exhibit high market liquidity.

Currency Peg

Or a fixed exchange rate, occurs when a country links its currency value to the value of another country’s currency by fixing it. the intervention makes the exchange rate between those countries constant and stable. this helps countries with robust trade industry to provide a better business environment by reducing the risk caused by the exchange rate fluctuations.

Currency Risk

The possibility of the occurrence of negative financial effects based on exchange rates fluctuations.

Current Account Balance (CAB)

A function related to a country’s balance of payments (bop). it is the broadest measure of international flows of capital, goods, and services in and out of a country.

Current Price

Represents the actual market price of a financial instrument traded on an exchange. also, it is the most recent price of a security listed in an investment portfolio. those prices are determined objectively by real-time data providers.

D
Daily Chart

A graph displaying the price movement of a given financial instrument in which each bar or candlestick represents a day’s worth of data.

Daily Cut-off

The point in time during the day, which is set to be as an end of the current trading day and the beginning of the new one.

Decentralized Autonomous Organizations (DAO)

Are organizations that operate entirely by encoded computer programs called smart contracts. all the transaction history and program instructions are managed within a blockchain. they are decentralized and automated.

Dark Cloud Cover

A bearish reversal pattern constructed by candlesticks and describing the prediction of a near-term price fluctuation. the pattern is characterized by a bullish uptrend expressed with a white candle, followed by a new black candle that opens at a new high then closing below the midpoint of the body of the white candle. the movement is predicting a "dark cloud" over the bullish trend that precedes it. the final confirmation that the pattern is achieved is when another black, smaller in size, candlestick if formed. it is recommended to use this pattern in conjunction with other technical analysis tools as confirmation.

DASH

It is a variation (fork) of bitcoin, peer-to-peer cryptocurrency designed to provide faster, private and more secure transactions to users. dash is the short version of its name “digital cash”. it was previously known as xcoin (xco) and darkcoin.

Day Trader

Is the person executing short and long trades to profit from on the intraday market price fluctuations derived from the momentary supply and demand inefficiencies.

Day Trading

It is the buying and selling activity of financial instruments throughout the day earning benefits and risks from the small price fluctuations.

Deal Blotter

The term is used for the record of the trader’s transactions throughout a given day. the blotter of a forex trader will include the executed opening and closing currency positions by him/her.

Deal Ticket

Also known as a trading ticket. it represents a method of tracking the terms, conditions and the required information of the trade agreement.

Dealer

A broker, agent or a principal- is an individual or firm in the industry connected to buying and selling financial instruments for its own account or on the behalf of their customers. when acting as a principal or a dealer - they trade for its own account, while if they are acting as a broker or an agent - the orders are executed on the behalf of clients.

Debt-to-GDP Ratio

It measures the amount of a country's national debt in relation to its gdp. the ratio indicates the ability of the country to pay its debt. the lower the ratio, the more capable the country to pay back its debt, therefore, the risk of default is also lower.

Decentralized Market

Represents a marketplace, created by investors, without a centralized location. the structure consists of a network of various technical devices. the foreign exchange market represents such a market due to the lack of physical location for the execution of the currency transactions.

Default

It occurs when an individual or an entity fails to pay its debt liabilities. it is used also in the case when one party fails to perform on a futures contract as required by an exchange.

Deficit

On a national level - shortfall in the balance of trade, the balance of payments, or government budgets. a trade deficit exists when a nation's imports exceed its exports. most often is described as the difference between cash inflows and outflows. a deficit is the opposite of a surplus.

Deflation

Deflation is the opposite of inflation. it is described as the general decline in prices of goods and services and when the inflation rate falls below 0%. deflation has an impact on the value of the currency. therefore, inflation decreases the purchasing power of the currency, while deflation results as an increase of the purchasing power.

Delivery

It is the action which can occur in the spot, option or futures contracts. it represents the transfer of a financial instrument that is a subject of a sales contract, offered to and received by the buyer. delivery is the final stage of a contract for the purchase or sale of an instrument.

Delivery Date

The date defining the maturity of a futures or forward contracts. the delivery date is also known as a value date. all futures and forward contracts have such a date upon which the underlying financial instrument must be transferred to the contract holder, only if the contract is held until its maturity date.

Depreciation

A decline in price of a financial instrument due to economic changes.

Depression

A large scale recession that lasts an extended period of time. it is characterized by a significant increase in unemployment, a dramatic drop in output, bankruptcies and sovereign debt defaults, a reduction in trade and commerce, etc. the most commonly known depression is the great depression in the u.s. in 1929.

Derivatives

The derivative itself is a contract between two parties with a price derived from the fluctuations of the underlying financial instrument. the most common derivatives are swaps, futures, forwards, and options. they can be traded both over-the-counter (otc) or on an exchange. in trading, investors who expect the euro to increase in price compared to the dollar could gain profits by using a derivative which is rising in value with the euro.

Descending Trend Channel

Basic chart patterns used in technical analysis. it is applied in order a downtrend to be shown for a financial instrument’s price series. it is formed by drawing two lines - a line through the high asset prices, another line through the low asset prices. if it is a downward trend, then the space between the trendlines forms the descending channel. the ascending and descending channels are tools which can be used to identify trading signals.

Descending Triangle

It is a very popular bearish pattern chart used by traders, due to its clear indication that downside momentum is likely to continue its direction. the pattern is created by drawing two trendlines - one connecting series of lower highs, and a second one connecting the lows. the resulting shape is a right triangle whose hypotenuse moves downward over time. the pattern indicates a strong sell signal.

Details

The required information for a successful transaction.

Detrended Price Oscillator (DPO)

A technical analysis tool; dpo's main purpose is to provide information on the price of the assets without taking into account existing price trends. it estimates the length of price cycles from peak to peak, or trough to trough. compared to other oscillators like the stochastic or the moving average convergence divergence (macd) - dpo is not a momentum oscillator. the difference comes from the main assumption of the dpo stating that long-term price trends are composed of short-term price trends. therefore, long-term trends can only be understood if taking into account the short-term trends i.e. the price information is drawn in time.

Devaluation

An intentional decrease in a financial instrument’s price due to official announcement or events.

Diamond Top Formation

A relatively rare chart formation used in technical analysis. one of its applications is to detect a reversal following an uptrend. the formation generates a strong sell signal.

Dip

A dip is when a financial instrument experiences a decline in price.

Direct Quotation

Quotes in fixed units of foreign currency against domestic currency.

Discretionary account

An account type also known as managed or controlled account. an investor or trading account in which the account holder delegates rights to a company or trading body to handle buy/sell transactions. the trading body also has the power to choose which currencies to buy or sell.

Discretionary Investment Management

Is a form of trading or investment management, where the buy and sell decisions are taken by an authorized portfolio manager or investment adviser on behalf of their clients.

Distributed Consensus

Mutual agreement by various computers in a network that allows it to work in a decentralized, p2p manner without the need of central authority to deter dishonest network participants.

Distributed Ledger

A list of recorded, time-stamped transactions that is simultaneously broadcast, copied and verified via consensus across many different computers in a p2p distributed network. if every computer (node) in the network has an identical copy of the ledger, illegitimate entries or corrupted versions are easier to detect.

Divergence

A trading pattern in technical analysis which may signal a major positive or negative price movement.

  • Negative divergence is visible when plotting oscillators such as momentum, volume and a price of the financial instrument. If the data shows that the price is rising, but the oscillator has a downward trend - this reading may be interpreted as weakening sign in price movement.
  • On the other hand, positive divergence is visible when the price of the financial instrument will reach new low values while the RSI have higher lows with every price move. The interpretation of it may be as: the lower lows of the financial instrument price are losing their downward momentum and a trade reversal may be following up soon.
Dogecoin (DOGE)

An open source of cryptocurrency falling under the category of altcoin. founded late 2013 with a japanese do in its logo. it is script based, decentralized virtual currency enabling fast payments to everyone.

Doji

It is a type of candlestick and simultaneously a warning sign of a pending reversal. the candlestick of an instrument has an open and close that are virtually equal and are often components in patterns. doji candlesticks lack a real body and can be seen as a cross and it signals a reversal pattern for technical analysts.

Double Bottom

It is a form of chart pattern used in technical analysis, describing a change in trend and a momentum recovery (reversal) from a previous leading price action. it looks like the letter "w" - the pattern is based on a drop in the price of a financial instrument such as a stock or an index, followed by recovery, and another drop to the same or similar level as the initial drop, and a final recovery. when the pattern has a twice touching low level is considered as a support level. note, the pattern should be validated by market fundamentals for the security itself.

Double-Spending

Is the risk that a cryptocurrency can be spent twice (or more). double-spending is unique for the digital currencies problem due to the fact that digital information can be reproduced relatively easy. the treat consists of the following - the holder of the digital currency can make a replica and send it to a merchant or another party while holding to the original.

Double Top

Another form of the chart pattern, inverse to the double bottom, used in the technical analysis. it is characterized by two consecutive peaks in price signaling a potential bearing or downward reversal of an uptrend. it is an indicator considered as an intermediate or long-term reversal in price. therefore, the pattern looks like the inverse version of the letter “w”.

Dovish

Refers to the tone of language when describing a non-aggressive stance or viewpoint towards a specific economic event or action.

Dow Jones

The dow jones industrial average (djia) is comprising the weighted average of the stock prices of 30 of the largest u.s. companies traded on the new york stock exchange (nyse) and the nasdaq.

Downtick

The sale of a financial instrument at a lower price than the previous sale.

Dragonfly Doji

A kind of candlestick pattern signaling uncertainty between traders. the doji is formed when the financial instrument's opens and closes at or near its high. along with that, the long lower shadow suggests the balance between the supply and demand forces is about to be reached, therefore, the direction of the trend may have a major reversal.

Drawdown

It is presented in a percentage form measure of peak-to-trough decline. in trading, drawdown refers to the reduction in your trading account from a trade or a series of trades.

Dump & Pump

When a person or group sell or buy a significant amount of a particular financial instrument at a market value, driving the price of the same instrument down or up.

Dust Bitcoin Transactions

Transactions for insignificant amounts of bitcoin lower than the minimum limit of a valid transaction. such transactions are uneconomic and considered "spammy" to the network.

E
Easing

Also known as quantitative easing - is the central bank intervention of purchasing government securities from the market. the easing is an unconventional monetary policy aiming to lower the interest rates by increasing the money supply in the system. the process includes an increased volume of money in the banks, in order to increase lending to the businesses and the liquidity of the banks. the result which the policy is seeking is to stimulate the investments in the economy.

ECDSA

An acronym for elliptic curve digital signature algorithm. ecdsa is used to generate a key pair in public key cryptography and more specifically in bitcoin to ensure that funds can only be spent by their rightful owners. concepts related to ecdsa are the private key, public key, and signature.

Economic indicator

A measurement or data point on the economy that provides a barometer of how the country is doing, which could influence the financial instrument's value. in trading, investors track on a regular basis the released economic indicators. the purpose is to make sure that they draw, as reliable as possible, forecast. simultaneously the investors rely on technical analysis combined with the data gathered from the indicators (the fundamental analysis), in order to spot eventual signals for their future investments. most common indicators which may be followed are:

  • Beige Book
  • Business Outlook Survey
  • Consumer Confidence Index (CCI)
  • Consumer Credit Report
  • Consumer Price Index (CPI)
  • Durable Goods Report
  • Employee Cost Index (ECI)
  • Employee Situation Report
  • Existing Home Sales
  • Factory Orders Report
  • Gross Domestic Product (GDP)
  • Housing Starts
  • Industrial Production
  • Jobless Claims Report
  • Money Supply
  • Mutual Fund Flows
  • Non-Manufacturing Report
  • Personal Income and Outlays
  • Producer Price Index (PPI)
  • Productivity Report
  • Purchasing Managers Index (PMI)
  • Retail Sales Report
  • Trade Balance Report
  • Wholesale Trade Report
Economists

Specialists in the field of economics. their job is connected to studying the relationship between society's resources and its production output. they research and follow the market by analyzing the daily releases of economic data, aiming to draw conclusions on the present conditions and forecast the future opportunities, which may affect the economic growth and stability of a country. the focus of the economists is normally long-term, based on the fact that, after governmental changes in the policies have been introduced, the implementation of the changes takes time.

EMA is an abbreviation of Exponential Moving Average

Is a type of moving average placing a greater weight on the most recent data points. ema reacts more significantly to recent price changes compared to the simple moving average.

Employment Situation Report

It is released by the bureau of labor statistics on a monthly basis, and it is known as the labor report. it includes a basket of employment reports such as the unemployment rate, average hourly earnings, and the non-farm payrolls report. the non-farm payrolls report is arguably one of biggest market movers in the forex.

End of Day Order

A trade order to buy or sell a financial instrument, but closes at the end of the trading day. hence- end of day order. also known as an eod. these orders must be transacted by the end of the trading day regardless of the time that the order is placed.

Engulfing Pattern

Pattern signaling reversal after a particular trend. it can be divided into bullish or bearing engulfing patterns. if it appears at the end of an uptrend - it is a bearish engulfing pattern. if the pattern appears after a downtrend - it is a bullish engulfing pattern. on the chart can be seen when the first candlestick is characterized by a small body, followed by a candle whose body completely engulfs the previous candle's body.

Entry Order

An entry order is one that is used to enter a trade at a specified price level. if the currency pair never reaches that price level, then the entry order is not executed.

There are five types of entry orders:

  • A Market Order - allows the trader to buy or sell at the best current price i.e. is used to guarantee a fill. It is the fastest way to get in out of a trade, and the importance is highlighted on getting filled, rather than getting the particular price.
  • A Limit Order - this order allows a specific order entry i.e. it is used when getting the specific price is more important than the getting filled. The order is used when the trader believes that the price action will reverse upon hitting that specified price level.
  • A Stop order - to activate or cancel the previously set market or limit order once a specified price level of the financial instrument has been reached.
  • Conditional Orders - the activation or cancellation of such orders is only when certain initially placed criteria are met.
  • Duration - the specification of how long the investor would want in order to be in effect.

• entry point- or strike price, is the price at which an investor purchases an investment and normally is the entry point of predetermined trading strategy for minimizing trading risk.

Equity

In margin trading, equity represents the existing balance of your trading account, including p&l (profit &loss) of all open trading positions.

ERC20

It is a token standard used for ethereum ensuring that the tokens perform in a predictable way. most tokens released through ico are compliant with this standard. along with the decentralized applications which also fall under the erc20 standard, the tokens can be easily exchangeable.

Ethereum

Is a decentralized cryptocurrency platform based on blockchain technology running on smart contracts founded in 2013. it allows developers to create decentralized applications.

Eurozone

It is a region consisting of all countries part of the european union which have accepted the euro as their national currency. the bloc was formed to unite the european countries to become a single, economic superpower.

Eurobonds

These are bonds which are frequently grouped together by the currency in which they are denominated, for instance, eurodollar bonds. the nomination of these bonds is in currency other than the currency of the country in which they are issued.

European Currency Unit (ECU)

Prior to the implementation of the euro in 2002 as an official currency unit, ecu was the former currency of the countries forming the european countries.

The European Financial Stability Facility (EFSF)

A temporary crisis resolution measure created in 2010 due to the ongoing financial and sovereign debt crisis in the eurozone. the main purpose of it was to preserve financial stability by supporting financially countries like portugal, ireland, and greece. at the moment efsf is not fully active and not providing financial assistance, however, it still functions in order to fulfill its previously undertaken obligations.

• european economic and monetary union (emu)- it is the successor of the european monetary system (ems)

• european financial stabilization mechanism (efsm)- a permanent fund created with the main purpose to provide emergency assistance to the countries part of the european union. this fund is guaranteed by the european commission and it generates the funds through the financial markets.

Evening Doji Star

A reversal pattern similar to the evening star comprised of three candlesticks. the first is bullish in nature (large white body candlestick), the second - indecisive (this candlestick opens higher, trades in a small range, and closes at its open - doji), the third- bearish (this black candlestick closes below the midpoint of the body of the first candle).

Evening Star

A bearish reversal pattern consisting of three candles: 1. a large white; 2. a small-bodied one; 3. a large black candle. this pattern is used by traders as an early indication for a major change in the trend from an upward trend to downward trend.

Exchange

A physical location where financial instruments are traded. exchanges provide and access to companies, governments, and other groups a marketplace where to sell securities to investors.

Exchange (Crypto)

It is a website, platform or mobile application where traders can buy and sell cryptocurrencies using fiat money, bitcoins or altcoins.

Exchange Rate Risk

The potential loss that may be incurred from the fluctuations in the price levels of two different currencies.

Exotic Currency

Refers to a currency that is not popularly traded or considered one of the eight major currencies. these currencies are illiquid and are traded in low volumes.

Expiration Date

Or the maturity date, represents the day on which the holder of a financial contract can exercise his right to buy or sell the underlying financial instrument.

Export

Refer to any goods produced in one country, then shipped to another country for sale or trade. the sale is then added to the gross national output.

F
Factory Orders Report

The official name of this report is "manufacturers' shipments, inventories and orders" report. it is issued by the u.s. census bureau of commerce ones per month. the report provides data on the factory orders for durable and non-durable goods. factory orders are a key indicator of demand for industrial products. the report's purpose is to provide an overview of the health condition of the whole manufacturing sector.

Fading

It is an investment strategy against a dominant trend. the strategy is most likely applied by not risk-averse investors. if they fade, they would sell or take a short position when the price level of an instrument is rising, and buy when the price falls.

Falling Three Methods

A bearish pattern. it is used to forecast the prolongation of a current downtrend. it forms when a long black candlestick showing a downward trend, followed by a series of three small candles trading at a price level below the high of the first candlestick. then, a long black candlestick opening at a new low level, suggesting investors that sellers are the majority on the market at that point in time. the bullish version of this pattern is the "rising three methods".

Falling Wedge

Is visible when the price level of a financial instrument has been falling over time. the wedge patterns are acting in a similar manner to the triangle patterns and these patterns can be rising or falling. the falling wedge pattern can be found in both - uptrends and downtrends, therefore, it may be a signal for either continuation or reversal. if it occurs on an uptrend - the pattern will act close to bull pennant pattern. if the falling wedge occurs on a downtrend - then it will always follow a reversal pattern.

Faucets

Crypto reward systems which are provided to the audience by exclusive platforms, websites, portals, etc. faucets are the small cryptocurrency units which are distributed to the users after a completion of a task.

Federal Funds Rate

Is the rate at which depository institutions (banks) lend reserve balances to other banks on an overnight basis. reserves are excess balances held at the federal reserve to maintain reserve requirements. the fed funds rate is one of the most important interest rates in the u.s. economy since it affects monetary and financial conditions, which in turn have a bearing on critical aspects of the broad economy including employment, growth, and inflation.

Federal Open Market Committee (FOMC)

The team behind the us federal reserve that controls the nation’s cash supply through open market operations. fomc meets eight times a year, sets the fed funds rate, and uses open market operations to influence the supply of money to meet the target rate.

Federal Reserve

The federal reserve of the united states, commonly known as the fed, is the organization responsible for monitoring and maintaining the united states currency supply. established by congress in 1913, the fed is composed of a washington d.c.-based board of governors, twelve large regional banks, and a number of smaller affiliated institutions. the fed has a number of methods for influencing the american money supply. chief among these is the power of the fed to increase or decrease the amount of currency in circulation. the fed can purchase or sell government securities to its primary traders, which brings additional federal reserve notes into circulation or removes excess paper money from the supply. the fed also works with the u.s. mint to print additional paper money, or to destroy the unneeded currency.

Fiat

A currency not backed by a physical commodity, however, they are accepted and defined as a legal tender by the government.

Fibonacci Arcs

Fibonacci arcs are one of the four fibonacci studies: (1) fibonacci retracements; (2) fibonacci fans; (3) fibonacci time zones. arcs, unlike the rest of the studies, produce dynamic support and resistance levels that are changing over time as the arc rises. the slope of the arc is a function of its baseline and the time of it elapse since the high point. the fibonacci arcs are created by a trend line between two points representing a trend, called baseline. this study is most often combined with other technical analysis such as technical indicators and chart analysis in order to maximize the success of the forecast.

Fibonacci Channel

The main purpose of the fibonacci channels is to use the ups and downs in the market and to make as accurate as possible prediction on the major changes and trend directions. the channels are technical analysis tool used to estimate the support and resistance levels based on fibonacci numbers. the channels are a variation of the fibonacci retracements with the difference that its trendlines are run diagonally rather than horizontally. normally the channels are used in the forex market and applied in long-term, short-term, up- and down-trends.

Fibonacci Ellipse

Also known as “phi-ellipse”, is another technical analysis tool used to detect price patterns in order the investors to be better prepared for forecasting the pricing moves i.e. this provides them the ability to draw better forecasts when a buy or a sell is in order.

Fibonacci Extension

The extensions are normally used in some of the fibonacci studies, they are created when the first fibonacci retracement chart is generated. then, the extension can be created by extending the vertical line and drawing horizontal through it at higher or lower price levels, corresponding to grater fibonacci - significant percentages: 161.8%, 261.8%, or any other percentage derived by the multiplication of the previous percentage by the golden ratio of 1.618. the extensions are a long-term method used to predict future support and resistance levels of the market once price levels have broken the original support or resistance and moving along a new overall trend.

Fibonacci Fan

Is one of the four fibonacci studies. it appears as three trend lines in the form of a fan. the three fans have slopes at 38.2%, 50%, and 61,8% projecting into the future. the predictions for the future price movements are possible after the daily prices pass the three fans and price resistance or support appears at these intersection points. the fans also predict the range of a market for a short period of time, due to the "bounce" movement between the lowest and the highest of the three fibonacci fan lines. traders also use the fibonacci arcs in combination with the fans. both of the studies are plotted in the same chart, the cross points of the two studies are considered as strong support or resistance levels.

Fibonacci Retracement

Another fibonacci study. it is used immediately after a strong price movement which might be either up or down i.e. occurs in either bull or bear market conditions. this technical analysis tool refers to the areas of support (stop going lower) or resistance (stop going higher). the retracement levels are using horizontal lines indicating the areas of support or resistance at the key fibonacci levels: 23.6%, 38.2%, 50%, 61.8%, and 100%. this study helps traders to identify strategic places for transactions to be executed, target prices or stop losses. the fibonacci retracement levels are static prices, unlike moving averages. due to this characteristic, it is easy to identify allowing a trader to react carefully when price levels are tested.

Fibonacci Studies

They encompass series of analysis tools based on the fibonacci numbers and the golden ratio. they represent the geometric law of nature and human behavior applied to financial markets. generally, these studies are used to predict the levels of support and resistance generated through the relationship between the fibonacci numbers. the studies can be applied without limitations. most of the fibonacci studies are based on 3-wave patterns (a-b-c corrective patterns).

Fibonacci Time Zones

A series of vertical lines corresponding to the sequence of fibonacci numbers: 1, 1, 2, 3, 5, 8, 13, 21, 34, etc. the interpretation involves looking for significant changes in price near the vertical lines. in theory, the time zones are the points at which significant market events can be expected from the reversal of a current price trend. in practice, the time zones have approximately about 70% of predictive power, however, large price events can occur occasionally between the fibonacci time zones. it is highly recommended the fibonacci time zones to be used along with the fibonacci time projection in order to minimize the negative outcome changes.

Fill

The action of completing an order to make a transaction.

Fill Price

The price at which an order was executed.

Financial Risk

The existing probability of an individual, a company, or a government to not meet its financial obligations.

First In First Out

Or fifo, is the rule at which the open positions of particular financial instruments are closed in the same order they were initially opened.

Fiscal policy

Or financial policy, a type of government intervention in the economy in order to adjust the levels of spending and taxation aiming to influence it accordingly seeking balance and stability. normally, the policy influences macroeconomic conditions such as - aggregate demand, employment, inflation, and economic growth. there are three policies:

  • Neutral - Government spending is equal to its revenue.
  • Expansionary - Government spending is higher than its revenue.
  • Contractionary - Government spending is lower than its revenue.

The possible effects of the fiscal policies on currency - it is highly dependent on the economic situation.

Fisher Effect

It describes the relationship between inflation and interest rates (real and nominal). i.e. the real interest rate is equal to the nominal interest rate minus the expected inflation. therefore, the real interest rates fall as inflation increases, unless the nominal rates increase at the same rate as inflation. in other words, if a central bank expects a considerable rise in price levels, they could hike rates accordingly.

Fitch Ratings

Is one of the big three credit rating agencies in the industry based in new york and london. fitch bases its ratings on factors, the kind of debt the company has and its sensitivity to systematic changes.

Fixed Exchange Rate

The official rate set by monetary officials.

Flag

A technical analysis chart pattern. it looks like a flag on a flagpole suggesting a continuation of the current trend. it is a less popular analytical tool than the triangles, wedges, etc., however, traders see flags as very reliable consolidation patterns. the flags represent areas with 5-20 bars, occurring after sharp movements in price, which are tightly consolidated. flags are similar to pennants and are among the most reliable continuation patterns used by traders. the only difference between the two is that the flags resemble two parallel trend lines tending to slope against the prevailing trend forming the shape of a rectangle. while the pennant has two converging lines and more horizontal forming the shape of a triangle. there are different methods in trading flag patterns, therefore, it is recommended to make sure that the pricked method is corresponding to a particular situation.

Flat

Also referred to as square. in securities market, it stands for a price level which is neither rising or falling. when the term is used for fixed income financial instruments such as bonds, then the bond is traded without accrued interest. in forex, the term is used as, when a condition of neither short or long exists for a particular currency.

Flip

In trading, when an investor decides to switch from having more short positions to having more long positions, or vice versa. many investors may be using flipping strategies to generate quick profits from selling an asset after short-term ownership.

Floating Exchange Rate

A rate fluctuating freely based on the open market influence.

Foreign Currency Effects -The gain or loss of foreign investments due to a rising or falling domestic currency. If it is encountered a rising domestic currency

Lower returns will be incurred, when converted back to the domestic currency. if falling domestic currency - higher returns when converted back to the domestic currency.

Foreign Exchange

Also known as forex trading, represents the conversion of one currency to another. the global exchange market is the largest and most liquid financial market worldwide, with an average daily trading volume in the trillions of dollars. the forex market is decentralized and transactions are executed over-the-counter (otc) worldwide.

Forex Swap

Or a currency swap. it is an agreement between two parties to exchange a given amount of one currency for an equal amount of another currency based on the current spot rate. the two parties will then give back the original amounts swapped at a later date, at a specific forward rate.

The forward rate locks in the exchange rate at which the funds will be swapped in the future while offsetting any possible changes in the interest rates of the respective currencies. thus, this creates a hedge for both parties against potential fluctuations in currency exchange rates. this makes forex swaps very useful for multinational and exporting companies.

Forward Contract

Is a personalized contract based on the mutual agreement between the involved parties for buying or selling an asset at a specific price and a future date. these contracts are not standardized in nature and are regarded as over-the-counter (otc) instruments. compared to the standard futures contracts, forward contracts can be customized to any commodity, amount and delivery date.

Forward Deal

A deal with a value date greater than the spot value date.

Forward Points

It is based on the interest rate differential between two currencies expressed in exchange rate points. the forward points are basis points, added to or subtracted from the spot rate to give the forward rate. if points are added it is called forward premium if points are removed - forward discount.

Fractal

Is a geometric pattern which is repeating in a small scales producing irregular shapes. due to the repetitiveness nature of the financial market’s prices and trends - these patterns can be also noticed.

The most popular such pattern is the bill williams’ fractal. fractal signals can also be combined with other technical analysis tools such as moving averages or the fibonacci retracements in order traders to obtain as relative as possible forecast.

Front Office

The normal trading activities carried out by the agent of a brokerage company.

FTSE 100 Index

More commonly known as footsie, is one of the most popular and widely used stock market indices worldwide. it represents approximately 80% of the market capitalization of the london stock exchange (lse). ftse 100 is managed by the ftse group. the index is calculated in real time, and every 15 seconds updates and publishing the changes.

Full Nodes

Are internet connected computers storing a complete copy of the blockchain within a network. they can also validate the authenticity of a transaction and the earning generated from mining - these are called light nods.

Fundamental Analysis

A method of evaluating the performance of a financial asset in an attempt to measure its intrinsic value, by examining related economic, financial, and other qualitative and quantitative factors. the goal of fundamental analysis is to research and examine factors that can influence the market price of the asset. these factors are varied and include the overall company's performance, revenue, expense, liabilities, industrial environment conditions etc.

Fundamentals

Macroeconomic factors that affect the financial or economic and following financial valuation of a company, security or currency.

Futures

A standardized, transferable, exchange-traded contracts that expire on a specified future date. these contracts detail the quality and quantity of the underlying assets. they are standardized to be able to accommodate trading on the futures exchange. the futures markets are characterized by its ability to use very high leverage relative to stock markets.

G
Group of Twenty (G20)

It is comprised of 19 countries and the european union. in combination g20 economies account for around 90% of the gross world product, 80% of the world trade and two-thirds of the world population.

Group of Five (G5)

The five largest emerging economies: brazil, china, india, mexico, and south africa.

Group of Seven (G7)

Are the seven largest advanced economies: canada, france, germany, italy, japan, united kingdom, and the united states. they represent about 58% of the global net worth.

Gann Fan

It is represented by a series of diagonal lines called gann angles. the angles are overlaid on a price chart aiming to reveal the security’s support and resistance level. the gann fan is used in technical analysis tool, helping analysts to predict price changes.

Gap

It occurs when there is a sharp movement of a price of a stock either up or down, the gap is visible as a break between the price changes. the gaps or the sharp price movements can be created by earnings announcement, regular buying and selling pressure, a news release and other macroeconomic events. traders use these gaps in an effort to achieve quick profits from the occurred price corrections.

Gas

It is a term used in ethereum blockchain platform and referring to the value which is required to conduct a successful transaction or a contract.

Gas Limit

A term used in ethereum network referring to the maximum price an investor is willing to pay for the execution of a transaction or a smart contract. the higher the gas limit, the more computations are to be executed. all unused gas is refunded at the end of the transaction.

Gas Price

Ethereum term - the price which an investor is willing to pay for a transaction or a contract.

Genesis Block

Also known as block 0 or block 1, is considered as the conception of crypto blocks. it is created by satoshi nakamoto the founder of bitcoin establishing the beginning of cryptocurrencies. the original block has 50 bitcoins mined over six days, which are considered unspendable.

Germany 30

Also known as dax index, represents the largest most liquid companies in germany trading on the frankfurt stock exchange. dax was created in 1988 and the companies within the index comprise roughly 75% of the aggregate market cap trading on the frankfurt stock exchange.

Globalization

Is a widely used term now. it refers to the global integration of international trade. investment, information technology, and cultures. globalization is a process opening new opportunities for the different economies, therefore the main triggers of the process are: governments creating suitable policies to support development in the lagging behind economies and by raising the standards of living for their citizens.

Going Long

When an investor is the buying of a financial instrument such as a stock, commodity, etc., having an expectation that the value of the asset will rise.

Going Short

When an investor is first selling an asset and then buying, with the expectation that the value of the asset first will drop i.e. the selling price is higher than the price at which the investor will buy it later. the difference between the buy and sell price results in profit or loss for the investor.

Gold

Is a metal falling under the commodities on the financial market. gold has multiple usages such as in the jewelry industry, or in the past was set as a standard for monetary exchange. the standard was removed when the fiat money was introduced in the u.s. in 1971.

GPU mining

Gpu - stands for graphics processing units used for mining cryptocurrencies. these units have been used in the mining process for years. compared to cpu's (central processing unit), the gpu's process hashes much faster, however, not as fast as the asic (application specific integrated circuits). gpu's are normally used to mine altcoins due to the difficulty of mining bitcoin.

Gravestone Doji

It is a popular bearish reversal pattern formed when the open, low and closing prices are all neighboring to each other having a long upper shadow. the opposite of this study is the dragonfly doji. studies show that the pattern is relatively unreliable compared to other candlestick patterns. therefore, it is recommended to be used along with other technical analysis tools for form the final prediction.

Grexit

Stands for "greek" and "exit", the possible withdrawal of greece from the eurozone. the term gained popularity the beginning of 2012 when greek citizens proposed greece to leave the eurozone and return to the drachma.

• gross domestic product (gdp)- is the measure used to describe the total value of finished goods and services produced within a country’s borders for a specified time period, normally calculated on an annual basis. gdp is an important measure, which most of the investors are following in order to determine the current economic situation of a particular country, which in turn, may lead to significant disruption of the prices on the financial market.

Gross National Product (GNP)

It measures the total value of the total production by a country’s residents. consequently, every production generated by foreign residents must be subtracted. the gnp is calculated on an annual basis representing an important economic country indicator.

Good ‘til Cancelled Order

Also known as gtc, when an investor places an order to buy or sell a financial instrument at a specific price, and the order remains active until is filled or until the investor stops it.

GWei

It is the denomination of ether (eth), the crypto coin used on the ethereum network. it is also referred to as shannon, nanoether, and nano. the numerical value of the unit is as follows: 1 eth - 1,000,000,000 gwei (109)

H
Halving

A term used in mining a cryptocurrency. when a mining reward is split in half i.e if the reward for a miner is 1 000 coins for validating a block, halving would cut the reward into 500 coins. it is a process happening on a regular basis after a certain number of blocks have been mined.

Hammer

It is a chart pattern formed after a significant movement of the price of a financial instrument in a price level which is a lot lower after opening, however, it rallies to close way above or near its opening price. the movement results in a hammer-shaped figure. it is a signal indicating that the market may be on its way to hit the bottom, therefore, buyers are strengthening their positions.

Hanging Man

It is a candlestick form representing a large sell-off early in the trading day. it often appears at the end of an uptrend. the form has a short real body, very short or no upper wick and a long lower wick.

Harami

A two candle pattern that has a small body candle completely contained within the range of the previous body, and is the opposite color. harami can be bearing and bullish: bearish harami - suggests that prices may soon return to the downside, whereas bullish harami - indicating that the downward trend of a security may soon be reversed in the opposite direction.

Harami Cross

It is a candlestick pattern signaling that the previous trend may be about to reverse. the pattern is represented by a large candlestick followed by a small doji candlestick and the doji is contained within the body of the large candlestick. the harami cross can also be seen as bearing and bullish version.

Hard Cap

The term is used in the crypto world and stands for the maximum amount that an ico (initial coin offering) will be raising. when an ico reaches its hard cap, the collection of funds will be stopped.

Hard Fork

The process of radically changing the protocols on a blockchain where the developers determine that changes must be made to a cryptocurrency that will create incompatibilities between the old and new coin. all the users or nodes must upgrade to the up-to-date version of the software.

Hardware Wallet

This is a cold storage cryptocurrency wallet, providing one of the most reliable ways to store a particular coin. have in mind that not all cryptocurrencies are supported by this type of hardware device. it functions by storing the user’s private key in a secure manner due to its external to the main system format.

Hash

It is a function converting an input of letters and numbers into a fixed length encrypted output. the function is essential to the blockchain management and is using algorithms supporting it.

Hash Per Second

Is a term used in the mining process of a cryptocurrency representing the unit measurement of the hash rate. for example, if we want to determine if mining bitcoins is still profitable we take into account factors like cost of electricity to run a computer system, the availability, and price of the computer system, and the difficulty in providing the services. the difficulty is measured in hashes per second of the bitcoin validation transaction. it measures the rate of solving a problem. therefore, the difficulty is changing depending on the miners entering the network, due to its design to produce a certain level of bitcoins every ten minutes. i.e. as many miners enter the market the difficulty increases.

Hash Rate

Also referred to as hash power in a pow system is the collective measurement of computing power in a specific cryptocurrency ecosystem. bitcoin and most pow altcoins have their own hash rate. hash rate is measured in a unit calls h/s (hash per second).

Hawkish

The term represents the tone of language used to describe a viewpoint of a specific economic event.

Head and Shoulders

Is considered to be one of the most reliable reversal chart patterns by traders and analysists. it is represented by a baseline with three peaks, the outside two are similar in height, while the middle one is the highest. in technical analysis, this pattern indicates a bullish-to-bearish trend reversal.

Hedge

Is a type of investment applied simultaneously with the current trade of an asset. the main purpose of hedging is to reduce the risk of adverse price movements in an asset.

Hedge funds

Are alternative types of investments, normally using pooled funds, in the form of investments portfolios aiming to generate high returns by applying aggressive strategies. these funds are accessible only by accredited investors as they require less regulation compared to mutual funds or other investment funds. hedge funds are normally set up as private investment limited partnerships, opened only to accredited investors who are required to invest a large initial minimum amount.

Hit the Bid

Is used when a trader is willing to sell a financial instrument to another trader at its bid price. i.e. the seller believes that the price is the highest possible price on the market at this moment.

HODL

The term is used in the crypto world and it is an actual misspelling of the word "hold". it is used when traders might use buy-and-hold strategies. for example: "i am hodling" or "you should hodl" refers to the belief that the coin will be profitable in the future and the holder should keep it.

Holder

Is the person who currently owns or holds a trading account or a security contract, and this investor is receiving the full benefits outlined in the terms and conditions of the account or the security contract.

Horizontal Trend Channel

Are chart patterns used in technical analysis. they are trend lines represented similarly to the ascending and descending trend channels. horizontal channels are formed by connecting the upper line of resistance and the lower line of support of the price movement of a particular financial instrument. if the price of the asset remains reasonably constant for the given period of time, the slope of both trendlines will appear as horizontal slope, forming the trend channel. these channels provide a clear and systematic way of trading with the provision of buy and sell points.

Hot Wallet

A term widely used in the crypto world. after an investor has purchased cryptocurrency, they have to consider how and where to store it. there are a couple of types of storage options: hot and cold storage/wallets. the basic difference between hot wallets and cold wallets is that hot wallets - are connected to the internet, while cold wallets - not, they exist within an external device. the biggest advantage of hot wallets is their application for facilitating basic transactions. on the other hand, hot wallets are accepted as less secure due to the possibility of being hacked. clearly, an investor should choose wisely between the two based on the purposes the investor has.

Hyperinflation

It is an economic situation when price levels increase dramatically due to a large increase in the money supply not backed by the gross domestic product growth, which results in imbalances in the supply and demand for money. additionally, the nations' currency devaluates.

I
Ichimoku Kinko Hyo

It is an all-in-one technical indicator used in technical analysis, comprised of five lines called tankan-sen, kijun-sen, senkou span a, senkou span b, and chickou span. it is used to measure momentum along with future areas of support and resistance. the ichimoku is best used in conjunction with other forms of technical analysis.

Initial Coin Offering (ICO)

It is a way of raising funds necessary for development and expansion. typically, the companies go public by offering part of its shares. the investors may potentially earn a return of their investments.

If Done Order

It is an order including two orders in total: a primary order, that will be executed as soon as market conditions allow it, and a second order that will be activated only if the first order is concluded.

Import

Is a good or service which is brought into another country from another. normally the countries which import production are the countries which don`t have the industry or the capacity to produce it as efficiently and cheaply as the exporting countries. together with exports, imports form what is called international trade.

Import and Export Price Indices (MXP)

Indices which are monitoring the prices connected to imports and exports of products and services within a country. the import and export indices are produced by the international price program (ipp). these measures show the price changes from one period to another of the market basket of goods and services in international trade.

Importing

A term used in the crypto world is a method of transferring funds from a paper wallet. through this method - the private key contained in the paper wallet is moved to the investor's soft wallet private key collection. sweeping is another method for transferring funds from a paper wallet and it is also more frequently used.

Index

The term is used widely on the financial market and the most commonly known indices are s&p500, dax30, djia, etc. the index is a statistical measure of the changes in a portfolio of stocks representing a portion of the overall market. investors are using the indices to track the performance of the stock market.

Indirect Quote

Also known as the “quantity quotation”. the term is used in the forex exchange market for expressing the amount of required foreign currency an investor to be able to buy or sell one unit of the domestic currency. i.e. in an indirect quote, the domestic currency is the base currency, while the foreign currency - the counter currency. together with the direct quote - they form the “price quotation”

Industrial Production and Capacity Utilization (IPCU)

It represents a monthly report measuring the economic activity of the u.s. economy. the report contains data for the industrial production within the country where the report is issued expressed as a percentage change from month to month, and year to year. additionally, the report includes a detailed breakdown of production by industry grouping. within the report are also presented the measures of capacity utilization i.e. the percentage ratio of actual production to potential production. moreover, a breakdown of capacity measures by industry and by stage of completeness. the report is considered as important by traders, serving them as a gauge for a future performance of the assets in the marketplace. based on that, the report is seen as a trigger for increasing the buying or selling pressure in an industry.

Inflation

It is a quantitative measure expressed in a percentage. it is the rate at which the average price level of a basket of selected goods and services within an economy increases over time. normally the inflation is drawn on a quarterly and yearly basis, it is used in the fiscal policy of a country and it indicates the decrease in the purchasing power of the nation's currency. opposite to inflation is deflation.

The Initial Jobless Claims Report

A report is weekly released and issued by the u.s. department of labor. it shows the number of initial filings for state jobless claims nationwide. due to its short timeframe releases the report's results are seen as volatile, therefore, the results are instead headlined as a four-week moving average. many financial analysists embed estimates of the report into their market forecasts.

Initial Margin

Also sometimes called the initial margin requirement. it is the purchase price of assets that traders must pay for with his own cash. those type of accounts i.e. the margin accounts promote investors to use leverage for asset purchases instead of the available cash balance in their account would allow.

Interbank Rates

The foreign exchange rates that large international banks quote to other large international banks.

Interest Rate Differential (IRD)

The ird is used by the traders on the foreign exchange market when pricing forward exchange rates. it refers to the difference in interest rates between two similar interest-bearing currencies. the ird is one of the most important factors to consider when engaging in carry trade.

The interest rate parity theory

States that the difference between interest rates in two countries is equal to the differential between the forward rate and the spot rate of those two countries. this equity doesn't always exist, that allows traders to arbitrage option positions to earn a riskless return. for interest parity to exist there must be easy capital mobility between countries along with complete substitutability of assets. for example: if an investor chooses whether to invest in the domestic market or in a foreign market, the return would be approximately equal, given that the risk and maturities of the securities are similar.

Interest Rate Risk

Is a risk associated with fluctuations or interest rates. the risk can be mitigated by diversifying or hedging.

Interest Rate

The charged amount by a lender to a borrower for the use of assets. normally interest rates are expressed as a percentage of principal and are noted on an annual basis, known as annual percentage rate (apr)

The International Monetary Fund (IMF)

Is an international organization based in washington d.c. consisting of 189 countries (as per the year of 2018 data). the main purpose of the imf is to encourage financial stability and global economic growth, international trade and reduce poverty. the imf’ primary methods for achieving these goals are monitoring, capacity building and lending.

Source: www.imf.org

Intraday Position

Short-term traders are particularly interested from the intraday price movements i.e. intraday - stands for "within the day". along with real-time charts, short-term traders are after reaping the benefits from some short-term price fluctuations. volume weighted average prices (vwap) orders are used on an intraday basis to increase trade execution efficiency. the open positions are normally closed by the end of the trading day which reduces the chances the investment to be affected by a negative overnight news.

• inverted hammer pattern (ihp)- a bullish candlestick pattern indicating the strongest reversal signals. the invested hammer forms in a downtrend representing a probable trend reversal or support. ihp is pretty much identical to the hammer pattern with the slight difference of long upper shadow. this shadow indicates buying pressure after the opening price, followed by quite strong selling pressure. the strength of the selling price, however, is not as strong as its required to be to bring the price down below its opening value.

Inverted Head and Shoulders

A reversal pattern consisting of three lows with the head represented as central low being the lowest peak of the pattern and the flanking peaks as the shoulders. it represents a decline to a new low and a rally to immediate resistance followed by a second decline to a lower level than a third, more modest decline and rally through resistance.

Investment Fund

Are supplies of capital gathered belonging to numerous individual investors. with investment fund, investors don`t make decisions on the actual investment opportunities and where their funds will be invested. the choice of fund is based on the investor's goals, fees, risk, and other factors. due to its collective nature, investment funds provide a broader selection of investment opportunities, greater management expertise, and lower investment fees. types of investment funds include exchange-traded funds, mutual funds, money market funds, and hedge funds.

IOTA (mIOTA)

An open source distributed ledger founded in 2015. the iota's platform is using a decentralized acrylic graph (dag) instead of the blockchain. it offers features such as zero fees, scalability, and fast and secure transactions. it is focused on the internet of things. iota has a cryptocurrency called miota.

J
Janet Yellen

Chairperson of the u.s. federal reserve from 2014-2018. she was succeeded by jerome powell the beginning of 2018

Japanese Consumer Confidence

An economic indicator for japan

Jean-Claude Trichet

The former president of the european central bank. mr. trichet came to the presidency of ecb after serving as the president of bank of france.

Jerome Powell

Current chairperson of the u.s. federal reserve, starting february 5th, 2018.

K
Keltner Channel

An indicator of market momentum. it was developed by chester w. keltner and introduced in his book. it represents an envelope channel used in technical analysis to chart bands around asset's price candlestick patterns. the keltner channel includes two boundary bands and a moving average center line.

Kiwi

It’s a slang for the new zealand dollar. currency code (nzd)

Know Your Customer (KYC)

The process of verification of the identity of customers. it is an essential part of banking and financial institutions regulation.

L
Leading Indicator

It may be any economic factor that changes prior to the rest of the economy to alter its direction. the leading indicators help traders to predict forthcoming market changes. since they are changing before the actual market alters, traders are considering them as important guidelines for making smart investment decisions by taking advantage of the price events before they occur.

Leads and Lags

Refers to the execution time of a transaction. an alteration occurs when there is an expected change in exchange rates. if the expectations are of increase in exchange rates–transaction time for execution may speed up, if the expectation is of a decrease in exchange rates–the transaction may be slowed.

Ledger

An accounting term, it contains the company account information which is needed to prepare financial statements including assets, liabilities, owners' equity, revenue, and expenses. it provides a complete record of the company financial transactions.

Leverage

It is usually represented in ratios. it stands for the use of borrowed capital when investing to increase the company's or the trader's asset base. leverage is an investment strategy to increase potential return of an invested capital by the use of various financial instruments and borrowed funds.

LIBOR

Or london interbank offered rate - it represents the rate at which banks offer to lend funds to one another in the international interbank market for short-term loans - it is also taken as a benchmark rate. libor is the most widely accepted interest rate for futures, forwards, swap and etc. contracts.

Limit Order

Order with a specified price for buying and selling. the buy limit order - is processed at the specified price or lower. the sell limit order - is processed at the specified price or higher.

Linear Regression Channel

It is a statistical tool used for drawing forecasts from past data. the channel consists of three parts: (1) linear regression line - the line that best connects the data points of interest; (2) upper channel line - a parallel line to the linear regression line which is normally situated above it within one to two deviations difference; (3) lower channel line - it runs parallel to the linear regression line situated normally by one to two deviation below.

Liquidation

In trading, the term stands for the act of closing currently opened asset position.

Liquidity

In trading, the term represents the easiness of buying or selling a financial instrument in the market without affecting its price. cash is considered to be the most liquid asset.

Litecoin (LTC)

It is a variation of a cryptocurrency based on the bitcoin model. it is launched in 2011 and based on an open source decentralized global payment network.

Long candle

It denotes a large move from open to close positions, with a long length of the candle body.

Long position

Is the act of buying a financial instrument with the expectation that the price of it will rise in value. for example, in options contracts: for expectations that the price will fall, investors will go long on a put option; for expectations that the price will go up, the investor will go long on a call option.

Long-term trading

Also known as position trading, is when a trader “hodling on” to a position for a longer period of time. the time length of this position may last from four weeks to a couple of years. position traders normally will look into long-term analyses like 200-day moving average in order to identify the primary trend.

Long-Legged Doji

It is a candlestick pattern consisting of upper and lower shadows with the doji having pretty much the same opening and closing price. the candlestick signals the indecision of the investors regarding the future direction of the price of the underlying asset.

Lot

A unit used to measure the amount of the transaction. it is always an integer number. when investors buy or sell financial instruments in the capital market, they do so with lots.

M
MACD

Is the abbreviation of moving average convergence/divergence - an indicator used to show the differences between both - fast and slow emss of closing prices.

Maintenance Margin

Stands for the minimum amount of equity that must be kept in a margin account. for example, according to nyse the maintenance margin required by an investor after the purchase of a financial instrument is of 25% of the total market value of that instrument i.e. 25% extra funds should be available in the margin account apart from the investment.

Margin

The amount of equity that an investor has to have in their trading account. i.e. the necessary amount the investor to be able to hold a position.

Margin Call

When a margin account is close or below the minimum maintenance margin, the broker demands that the investor should deposit additional funds in order to keep the health status of the account.

Margin Usage

It represents the amount of equity used in the currently opened positions. it is very important to organize and have a clear view of margin usage prior to picking up trading strategies.

Mario Draghi

The current president of the european central bank (ecb).

Mark to Market (MTM)

In trading, the term is used when certain securities, such as futures and mutual funds are marked to market in order to show the current market value of these investments.

Market Cap

Or market capitalization is simply the amount of money the investors have given to a company through a price of their shares. the market cap can be calculated by the number of outstanding shares and multiplying that number by the current price of the stock.

Market Maker

The most common market maker is a brokerage company providing buy and sell solutions to investors in order to keep the financial markets liquid. however, a market maker can also be an individual market participant who buys and sells financial instruments at prices displayed in an exchange trading system for its own account - also called principal trades, if it is done for a customer accounts are called agency trades.

Market Order

An order to be executed by buying or selling a financial instrument at the best possible price in the current market.

Market Risk

Also called systematic risk, is the probability that an investor will incur losses due to factors affecting the overall performance of the financial market. i.e. that might be a change in interest rates, a change in the price of stock due to economic announcements and decisions, etc.

Marubozo

It is a term derived from a japanese word meaning a candle without a shadow. it is a chart formed by candlesticks indicating that a particular financial instrument's price hasn`t been traded above or below the range of the opening and closing prices.

Maturity

Or also called "due date", is the date of the settlement for a financial obligation of a contract. therefore, if the investor has the opportunity to choose either to renew the contract or to cease it.

Maximum Trading Power

Can be found by multiplying the maximum leverage ratio by the account value.

McClellan Oscillator

An indicator used by technical analysts to determine the overall market behavior, instead of determining the behavior of a single asset. it is based on the difference between the number of advancing assets and declining assets on the nyse. it is normally used for short-term and intermediate-term trading. the indicator signals, for example, if the market is overbought or oversold if the signals are in excess of 100 or (-100).

Medium-Term Trading

Traders undertaking medium-term trading are holding a position open for a few days, following strictly the fundamental factors and technical setups in order to gain an advantage. that type of trading has the lowest capital requirements, compared to scalping and long-term trading.

Mine and Yours

Terms used by floor traders - mine means buy, while yours means sell. the terms are mainly used in forex trading.

Mining

As an integral part of the cryptocurrency network, mining is the process where transactions are verified and added to a blockchain. additionally, is the process of creation of new bitcoins or altcoins.

Mintage Cap

It represents the limit of creation or mining of a particular cryptocurrency. i.e. the maximum supply of coins. for example, bitcoin’s mintage cap is of 21 million coins by 2140.

Momentum

Normally used in technical analysis, is the rate at which a financial instrument's price or volumes accelerate. it is considered as an oscillator and it is used to identify trend lines.

Monero (XMR)

Is a type of cryptocurrency created in 2014 which gained popularity for its privacy-oriented features.

Monetary policy

It refers to the process by which a monetary authority controls the money supply in the economy. usually, it is the central bank that carries out the task, adjusting the amount of money available in order to spur economic growth, stabilize prices and exchange rates, and promote employment.

The government uses a number of techniques in order to control a healthy state of the economy. some of those techniques are as follows:

  • by” increasing/decreasing the country’s monetary base”. Done by central banks with the aim to increase the liquidity in the economy.
  • To limit the number of assets that banks must leave with the central bank as reserves. By increasing the" reserve ratio requirement", banks have less liquid assets available for loans and more illiquid assets such as mortgages.
  • ” Discount window lending” - The central bank allows commercial banks to borrow reserves in exchange for collateral, making liquidity available for them in times of emergencies.
  • by adjusting” interest rates”. When the central bank raises interest rates, the money supply contracts because there is more money used to pay for borrowing costs and less money to go around the economy.
  • There is also the” currency board” or the option of pegging a country’s currency to another currency.
Money management

It is one of the most important aspects of trading, which normally has been neglected by investors and traders. a large percentage of traders fail due to the lack of firm understanding of money management concept.

Money supply

It is the total amount of money circulating in the economy at a given time. the money supply also reflects the different types of liquidity of each type of money has in the economy - m1, m2, m3.

Moody’s Corporation

Is one of the big three players in the credit rating industry. the corporation owns moody's investor services and moody's analytics. respectively, for rating fixed income and for economic analysis and risk management.

Moon

The term is used in the crypto world and stands for an extreme upward momentum as it keeps climbing in price.

Morning Doji Star

A three candle bullish reversal pattern that is very similar to the morning star. it is represented by a downward trend candlestick with a long black body, followed by a doji which opens lower with a small trading range, and finally, it is ending with a candle closing above the midpoint of the first candle.

Morning Star

Is a technical analysis term representing a bullish pattern consisting of three candlesticks following a downward trend. the identification of this pattern is important in recognizing the start of a trend reversal from bearish to bullish.

Moving Average (MA)

It represents the average f prices over a given period of time, it is used as a trading tool in technical analysis. it smooths the price movements by filtering out the “noise” from the fluctuations. traders are most commonly using the simple moving average (sma) and the exponential moving average (ema). they are applied to identify trend direction by determining support and resistance levels.

N
NAFTA

Or the north american free trade agreement, it includes three countries - canada, mexico, and the united states. the agreement went into effect january 1st, 1994 and its main purpose is the elimination of most tariffs on the trades between the countries in it.

NEM (XEM)

It refers to a cryptocurrency and a blockchain company founded and launched in 2015. it processes transactions more efficiently than other networks.

NEO

It's a blockchain-based platform supporting its own cryptocurrency founded in 2014 under the name of antshares and in 2017 was rebranded to neo. it aims to automate digital assets through the use of smart contracts.

Net Exposure

Its s term referring to the sum of the nominal value of your account positions which are converted into the base currency of your account.

Net Position

The term refers to the value of an open trading position after subtracting the initial cost of setting up the position.

New Development Bank (NDB)

It is a bank founded as an alternative to the world bank in 2015. it is established by the brics states (brazil, russia, india, china, and south africa). the main purpose of the bank is to support public and private projects through loans, guarantees, equity participation, and other financial instruments. the first original office of ndb is in johannesburg, sa, and its headquarters are in shanghai, china.

Node

A term referring to a computer containing a full copy of the blockchain and is part of a decentralized network.

Nonce

Stands for “number only used once” and it refers to a number which is added to a hashed block. however, when rehashed it meets the difficulty level restrictions. miners increment this number until a message digest is obtained that fulfills the requirement of the bitcoin protocol to add the block to the blockchain.

Nonfarm Payroll Employment

A term used in the u.s. to describe any job with the exception of farm work and proprietors. it is a data forming a report which is released by the u.s. bureau of labor statistics with a close look at the monthly data of the nonfarm payrolls which are part of the employment situation report. the report is used to track the economic health of the country.

O
Offsetting Transaction

The term is most commonly used in trading and it refers to an activity that exactly cancels the risks and benefits of another instrument in a portfolio. normally, traders are using the offsetting transaction when it is not possible to close an open position as preferred.

Old Lady

It is a name used dating back in the eighteenth century for the bank of england.

One Cancels Other Order (OCO)

It is referring to a pair of orders, for which is known that when executing one of them, then the other order will be automatically executed. on an automatic trading platform, the oco combines a stop order and a limit order. traders who are experienced know that by using oco they can mitigate the risk to enter the market.

Open Order

They normally occur when traders place restrictions on their buy and sell transactions leading to delayed executions. in other words, it is an order to buy or sell a financial instrument which is effective until the trader cancels it or until it expires. if there is a lack of liquidity of a particular financial instrument in the market that could be a cause the order to remain open.

Open Position

It refers to an active trade that has yet to be closed. it can exist after a buy or sell the position and it remains open until an opposing trade occurs.

Operation Twist

The term is given to a federal reserve monetary policy operation, which is connected to buying and selling bonds. it is a form of monetary easing which it doesn`t expand the fed’s balance sheet like the quantitative easing.

Order

It is a simple instruction of an investor to a broker to execute a buy or sell operation of a financial instrument.

Order book

An electronic list of buy and sell orders for a specific financial instrument.

Order Execution

The act of buying or selling an order for a specific financial instrument. it happens only when is completed, no when it is placed by the investor.

OPEC

Or the organization of the petroleum exporting countries, it consists of twelve major oil exporting countries. it was established in 1960 with its main purpose to coordinate the petroleum policies of its members and to ensure that the oil markets are stabilized and providing an efficient supply of petroleum to consumers.

Open P&L

Open profit and loss display the total unrealized profit and loss figures for the open positions in your trading account.

OsMA

Is the abbreviation of oscillator of moving averages. an oscillator itself is an indicator allowing to demonstrate the relationship between any two given set periods of the moving average which can be expressed as a percentage or a number. there are a couple of types of oscillators - price and volume oscillator. osma is a useful indicator of trends and relationship between data. in technical analysis, osma has been used for the provision of signals when a financial instrument is either overbought or oversold, due to results of price and/or volume oscillators.

Outright Forward

Is a term referring to a forward currency contract which protects an investor, importer or exporter from changes in the exchange rates. in other words, the contract locks in an exchange rate for a precise maturity date and a specified amount. such contracts are also used to speculate in the currency market.

Over The Counter (OTC)

It refers to a type of trade of financial instruments executed via dealer networks instead of centralized stock exchanges such as new york stock exchange (nyse), london stock exchange (lse), etc.

Overnight Position

It is a position which are not closed or ended by the end of the trading day. keeping open a position overnight has its negative and positive sides due to price fluctuations and the possible switch between the different markets.

P
Parabolic SAR (Stop & Reverse)

It is a complicated technical indicator used to determine price direction of an asset and for anticipating when a price will change its direction. the indicator is also known as a stop & reversal system. on the chart, the indicator appears as a series of dots placed either above or below the price bars. for example, if a dot is below the price is considered to be a bullish signal. on the other hand, a dot above the price demonstrates a bearish signal.

Parity

Simply said, it occurs when two (or more) things are equal or identical to each other. in trading, we can see parity, when currencies are of equal value, thus, the exchange rate is equal to 1. in addition, the term “par value” for a bond is similar to parity suggesting that the bond is selling for its initial face value.

Pennant

Refers to a method of pattern trading based on a continuation pattern. it is formed when there is a large movement in a financial instrument (flagpole), followed by a consolidation period with converging trend lines (the pennant), which is followed by a breakdown movement in the same direction as the initial large movement, representing the second half of the flagpole. the pennant is often interpreted as a brief pause occurring in a strong trending market and it is considered that the movement following the completion should duplicate the move preceding completion of the pennant. for example, a bullish pennant, one that performs on an uptrend will result in prices that break higher while a bearish pennant will result in breaking at a lower level.

Personal Consumption Expenditure (PCE)

Or also known as the pce index. it is a u.s. report stating the average price deviations for all domestic personal consumption items. the index includes the actual u.s. household expenditure.

Petrodollars

A term used for the money received from the sale of oil. all oil purchases from opec must be paid in u.s. dollars. petrodollars are also known as petrocurrency.

Piercing Pattern

It can serve as a potential; indicator for a bullish reversal. it is a technical trading signal and is represented by candlesticks:

  • The first candle is a long bear candle followed by a long bull candle.
  • The bull candle opens lower than the bear’s low but closes more than halfway above the middle of the bear candle’s body.

This is a warning sign for sellers since a reversal to the upside might soon occur.

PIIGS

It is an acronym of the five most economically weak eurozone countries during the european debt crisis in 2008-2009 - portugal, spain, greece, italy, and ireland. the term became popular during the financial crisis, as these economies had high government deficits compared to other eurozone nations.

Pip

Or point in percentage is the smallest price movement that a given exchange rate makes based on changing market conditions. for instance, in major currency pairs, a pip would represent the fourth decimal place: 0.0001.

Pivot points

A fundamental term used in technical analysis. the pivot point itself is the average of the high, low and closing prices from the previous trading day. this technical analysis indicator is used to determine the overall market trend in a different period of time. the pivot point analysis is often used together with calculating the support and resistance levels, which is similar to trend line analysis. combining pivot points with other trend indicators is a common practice with traders.

Political Risk

The risk created by any type of government events, which may contribute to a negative effect or outcome on a trader’s position.

Position

Is any form of investment in a particular financial instrument. positions can be a few types: short, long, flat, profitable and unprofitable positions (depending on the market movements)

Premining

Is the process of creation of crypto coins’ prior the currency to be launched to the public. premining shouldn`t be confused with premine, which is an alternative cryptocurrency with a sign pmc.

Premium

In trading the term represents the amount in which the forward price has exceeded the current market price.

Presale

The presale might be used for ico and ipo cases. it is when a portion of an ico or an ipo is placed with private investors right before it is scheduled to be publicly announced.

Price Action

It refers to a security's price movement. it can be represented in terms of charts, graphs, and tables. many of the short-term traders rely heavily on price action to draw trading decisions. technical analysis is a derivative of price action since it relies on past price movements to deliver informative trading decisions.

Principal Value

Or also known as the nominal value is the original amount invested by an individual in a financial instrument.

Private Key

In the cryptoworld, the term refers to an encrypted series of letters and numbers that allows someone to access their cryptocurrency and spend or withdraw it in a transaction. in other words, it can be compared as your bank account’s iban.

Producer Price Index

Or ppi, is a monthly report released by the bureau of labor and statistics detailing the purchasing price of various consumer goods. the report is released in the second week of every month and includes data on the previous month. one of the important reports followed by investors indicating the state of one country’s economic health.

Profit/Loss

The actual gain or loss due to transactions and market activities.

Proof of Stake (PoS)

A concept stating that a person can mine or validate block transactions based on the current number of coins he/she holds. in other words, the more coins the miner holds, the higher the mining power he/he has. pos is a successor of pow (proof of work). one of the key advantages that pos has over pow is lower energy consumption.

Proof of Work (PoW)

Is an algorithm that rewards the first person that solves a computational problem (mining) to achieve distributed consensus. miners compete to solve difficult cryptographic puzzles in order to add the next block on the blockchain. it prevents spam and cyber attacks such as ddos as it requires work (i.e. processing time).

Protocol

A set of rules governing the exchange or transmission of data between devices, agreed upon by the network participants.

Pseudonymous

Refers to when your individual personal details are not revealed for a given cryptocurrency transaction. however, the transactions are traceable and auditable. in other words, transactions can be traced, but not the identity of the parties involved.

Public key

A cryptographic key which is used to encrypt a message i.e. a code allowing the user to receive cryptocurrency into their account.

Pump & Dump

When a person or group buy or sell a significant amount of a particular financial instrument at market value, driving the price of the same instrument up or down.

Purchasing Power Parity (PPP)

It is a macroeconomic theory that compares different countries’ currencies through the “basket of goods” approach. for example, two currencies are at par when the basket of goods (or exchange rates) are priced the same in both countries.

Q
Quantitative Analysis

A technique seeking to understand behavior within the different financial markets by the application of mathematical or statistical methods, along with measuring the market values and research.

Quantitative Easing

A monetary policy for money disbursement as a method for the stimulation of the economy. the main purpose of the policy is to increase the money supply in order to lower the interest rates.

Quote

It is the latest price at which a financial instrument has been traded. it is also known as the asset’s “quoted price”.

Quote Currency

The second currency in a currency pair. also known as the counter currency.

R
Rally

A period of sustained increase in the prices of the financial instruments and it can happen during a bull market or during a bear market. the rally normally is visible after flat or declining prices.

Range

The difference of the highest and lowest price in a given trading period.

Rate

In forex trading, is the price of one currency in terms of another currency.

Rate of Change (ROC)

It is an indicator used in technical analysis which measures the percentage change in price between the current price and the past price n periods. roc is classified as a momentum or velocity indicator because it's measuring the strength of price momentum by the rate of change. the calculation formula is:

Roc=((most recent closing price-closing price n periods ago)/(closing price n periods ago )) x100

Recession

Is a state of an economy where we can see negative economic growth measured by the country's gross domestic product (gdp) within a period of two consecutive quarters. economists say that other factors like industrial production, consumer confidence, and capacity utilization should be taken into account when stating whether a recession is in place. declines in these macroeconomic factors help give a stronger signal that a recession in place. one country's economic state is of major importance of the country's future development.

Rectangles

It is a specific pattern that a financial instrument forms on a chart. the pattern signals that the price movement, which has slowed down during the pattern, will trend in the direction of the price break of the limited range. the rectangle pattern generally reflects a consolidation period, usually of four to six weeks' duration. this pattern regularly features well-defined support and resistance levels, which are to be distinguished by horizontal lines.

Relative Strength Index (RSI)

It is an indicator measuring the changes in the strength of prices. it is considered a popular technical tool because it is relatively easy to interpret. rsi is taken as a basic graph and it ranges from 0 to 100.

Relative Vigor Index (RVI)

It is a technical indicator used to measure the strength of a trend by comparing a financial instrument's closing price to its price range and smoothing the results by using ema. the indicator is calculated by the formula:

Rvi=(close-open)/(high-low)

Reserve Requirement Ratio (RRR)

Or cash reserve ratio (crr) is the percentage of deposits and other liquid assets that commercial banks must have in reserve, in order to have enough assets to pay its depositors in case of unusually high withdrawals. some central banks use rrrs for monetary policy. decreasing the rrr tends to stimulate economic activity as banks have more assets to loan out to borrowers. alternatively, increasing the rrr decreases the money available to potential borrowers, which could lead to a decline in economic activity and higher purchasing power of the money circulating in markets.

Resistance

Or resistance level, represents the price point at which the rise in the price of a financial instrument is stopped due to the emergence of a growing number of sellers wishing to sell that financial instrument at that price.

Retail Sales Report

It is an important report issued on a monthly basis by the u.s. census bureau. the report tracks the dollar value of merchandise sold within the retail trade. companies such a fixed point-of-sale and non-store retailers are used as a data sample. the data is heavily used by various major institutions, businesses, and investors. it is a key component of the calculation of the country's gdp. the retail sales report is one of the reports which after releasing can cause above the average volatility in the stock market.

Revaluation

The term is connected to the upward adjustment on a country’s official exchange rate relative to a chosen benchmark. revaluation can occur on a regular basis due to central bank activity.

Reverse Repo

Repo or repurchase agreement is a form of collateral lending, while reverse repo is a form of collateral borrowing. the most commonly used collateral is u.s. treasury securities, however, there might be other instruments bond to it. the reversal repurchase agreement is actually the repurchase agreement from the dealer's perspective i.e. the repo is the dealer, is he/she borrows money. however, if the dealer lends money, then he/she is a reverse repo. the reverse repos are generally seeking cash, which includes hedge funds and other leveraged accounts.

Reward-to-Risk Ratio

Measures a trade’s expected returns against its predetermined risk of loss.

The ratio can be calculated by the following formula:

Reward-to-risk ratio=(expeted profit from a trade)/(expected loss from the trade)

Ripple

It refers to the conceptualization of the day-to-day fluctuations in financial prices. ripples, tides, and waves are technical analysis concepts which have popularly associated with the dow theory ( a basic framework for technical analysis investing).

Ripple (XRP)

Refers to the cryptocurrency and the name of an open source payment platform where the cryptocurrency (xrp) can be transferred. the vision for the platform is to enable real-time global payments anywhere around the world. the ripple payment protocol was built by opencoin which was founded in 2012.

Rising Wedge

Wedges are arrow-shaped trendlines used in the technical analysis of short to intermediate term reversal or major price trends. there are rising and falling wedge types. rising wedge - is a bearish pattern beginning wide at the bottom and contracts as prices move higher and the trading range narrows. regardless of the type: reversal or continuation - rising wedges are bearish.

Risk

A chance in which an effect will occur. mostly applies when a negative effect is expected to be as one of the outcomes.

Risk appetite

A gauge of how “risk-hungry” traders are.

Risk-averse

It describes the low level of risk which an investor is willing to accept for a particular investment. pretty much every investor is risk averse i.e. they are willing to take lower risk investments with a lower return.

Risk Capital

Amount of money a person is willing to expose to risk.

Risk Management

The process and ability to limit and eliminate various types of risk.

Rollover

The interest paid or earned by a trader for holding a position overnight. in trading, interest rollover fees are part of it. interest paid on the financial instrument that is borrowed and earned on the one that is bought.

Round Trip

The process of buying and selling of a particular financial instrument.

S
Safe Haven

An investment in an asset which during times of market turbulence are expected to retain or increase in value. safe haven investments are sought by traders to limit the risk exposure of their investments in case of market downturns.

Same Day Transaction

Funds which can be transferred or withdrawn the same trading day as deposited.

Satoshi

The smallest unit of bitcoin used in the blockchain.

Scalping

It is a common trading strategy used by short-term traders or day traders to generate large profits on small price changes. the main goal is to buy or sell a number of shares at a current price and then sell them quickly at a price which is a few cents higher or lower for a profit.

Special Drawing Right (SDR)

It is an international type of monetary reserve currency created by the international monetary fund (imf). sdr is essentially an artificial currency instrument used by the imf, it represents a basket of important national currencies u.s. dollar, euro, chinese yuan, japanese yen, british pound.

Segregated Witness (SegWit)

Is a process by which a block size limit is increased by removing signature data from coin transactions. transactions are essentially split (or “segregated”), into two segments: the original data segment and the signature (or “witness”) segment.

Selling pressure

Occurs when the majority of the traders are selling, indicating that the majority think the market price will decrease.

Sentiment Analysis

Are used by sentiment - oriented traders which make decisions based on predictable price patterns. they act as order anticipators because they try to trade before other traders do. the result, these initial trades tend to make prices more erratic.

Settlement

Actual physical exchange of one currency for another.

Settlement Period

The period formed between the settlement date and the transaction date to satisfy the transaction’s obligation.

Settlement Risk

The possibility that one party will fail to deliver the terms of a contract with another party at the time of settlement.

Secure Hash Algorithm (SHA)

A cryptographic hash function programmed by the national security agency of united states.

Shadow

Or a wick, is a line which may be seen in a candle within a candlestick chart and its use is to indicate where the price of a stock fluctuates relative to the opening and closing prices.

Sharpe Ratio

Derived by william sharpe in 1966. its purpose is to help investors to understand the return of an investment compared to its risk. with time the ratio has become the most widely used method for calculating the risk-adjusted return. the formula for calculating the ratio is:

Sharpe ratio=(rρ-rf)/σρ

Where:

Rp = return of portfolio

Rf = risk-free rate

Σp = standard deviation of the portfolio's excess return

The sharpe ratio describes how much excess return you receive for the added volatility that you tolerate for holding on to a risky asset.

Shooting Star

It is a single candle bearish pattern with a long upper shadow, little or no lower shadow, and a small real body near the day’s low. normally comes after an upper trend. it looks like an inverted hammer except it is bearish.

Short Position

Is the act of selling first and then buying later.

Short squeeze

It’s a situation which occurs when a financial instrument is heavily sold or its price moves quite high, which forces more short sellers to close their short positions by adding to the upward pressure on the financial instrument.

Slippage

The difference between the expected fill price and the actual fill price. high probably of slippage may occur in highly volatile markets (i.e. during news or economic releases.)

Soft Cap

Refers to the minimum amount that an initial coin offering (ico) needs to raise.

Soft Fork

A technical term of the process of changing protocols to invalidate previously valid blocks or transactions.

Sovereign debt

A financial liability on a national level. sovereign debt usually refers to bonds which are denominated in foreign currencies. national governments are usually forced to take on sovereign debt when inflation is high or when exchange rates are unstable.

Speculation

When a financial transaction is conducted and the transaction simultaneously is exposed to a substantial risk of losing all its value but expected to deliver a significant profit represents speculation. in other words, with speculation, the risk of loss is more than compensated by the possibility of a huge gain. otherwise, traders would be very little motivated to speculate.

Spinning Top

They are signs of indecisions in the market. the spinning top is a candlestick pattern with a short real body, which is centered vertically between long upper and lower shadows. a very good reversal signal and can be any color. the smaller the body, the less direction the market has.

Spot Price

Also known as the current market price, it is the price at which a financial instrument can be bought or sold.

Spot Market

The place where financial instruments are traded for an immediate delivery i.e. the exchange of cash for a financial instrument for a spot price.

Spread

It represents the difference between the buy and the sale price of a financial instrument and it is measured in pips.

Spread betting

A type of speculation where there is an act of betting on the possible outcome of an event which might cause a price fluctuation in a particular asset.

Stagflation

A condition of slow economic growth and high unemployment, with a simultaneous rise in prices of goods and services (inflation).

Sterling

Slang for the british pound. currency code (gbp)

Stick Sandwich

It is a candlestick bullish reversal pattern used in technical trading. it is represented by three candlesticks, where the closing prices of the two downtrend bodies (black, red in color) must equal. a support price is apparent and the opportunity for prices to reverse is quite good.

Stochastic oscillator

It is an indicator used in technical analysis to compare the closing price of a financial instrument to the range of its prices over a period of time.

Stocks

Or equities refer to shares in the ownership of a company. it represents a claim on the company’s assets and earnings. companies which are publicly listed i.e. their stocks are traded in stock markets, such as new york stock exchange (nyse), london stock exchange (lse), etc.

Stop Order

To activate or cancel the previously set market or limit order once a specified price level of the financial instrument has been reached.

Stop-Loss Order

A limit order in which a trade is closed when a specified price is reached causing a loss. used to limit the number of losses in trades.

Strike price

The price at which a derivative can be exercised, referring to the price of the derivative’s underlying asset.

Support Level

A price level at which buying is expected to take place.

Surplus

Excess in the balance of trade, the balance of payments, or government budgets.

Swap

It represents a derivative contract based on which two parties exchange the cash flows or the liabilities of two different financial instruments.

Swing Trading

This is a type of trading where investors use technical analysis to look for movements in a financial instrument with short-term price momentums. it attempts to capture gains from an overnight hold to several weeks.

Symmetrical Triangle

A chart pattern represented by two converging trendlines connecting a series of sequential peaks and troughs. a symmetrical triangle is most often known as a bullish continuation pattern whose technical targets are derived by adding the largest vertical height of the triangle to the ultimate breakout level, however symmetrical triangles can also be regarded as neutral. the symmetrical triangle in reverse (or downtrend) would be classed as bearish.

T
Take Profit Order (T/P)

It is a type of limit order specifying the exact price at which to close an open position so a profit can be generated. most investors use stop-loss orders in conjunction with t/p orders for better management on the positions.

Technical Analysis

It is an attempt to understand the market sentiment behind price trends instead of analyzing the financial instrument’s fundamental characteristics. technical analysis involves the uses of charts as a tool to identify patterns or trends in a currency market.

Although technical analysis is akin to fundamental analysis, it focuses on the effects of market movements, rather than the causes. investors who use this strategy will look at a currency’s past price to determine what might happen in the future.

Three Black Crows

A bearish reversal candlestick pattern consisting of three consecutive black bodies where each candle closes near below the previous low and opens within the body of the previous candle.

Three White Soldiers

A bullish reversal candlestick pattern consisting of three consecutive white bodies, each with a higher close. each should open within the previous body and the close should be near the high of the candle. it suggests a strong change in market sentiment.

TIBOR

Tokyo interbank offered rate.

Trading Styles

There is a wide range of trading styles which may be applied as a trading strategy for your investments. the best people to consult with regards to the different trading styles of forex is your forex mentor or other foreign exchange(fx) traders you may be in contact with.

Types of trading styles

  • Day Trading
  • Discretionary Trading
  • Mechanical Trading
  • Position Trading
  • Scalping
  • Swing Trading
Trailing Stop

It is a type of a stop-loss order which is used by traders to protect gains by enabling a trade to remain open and continue to profit as long as the price is moving in the investor’s favor, and the trade is closed as soon as the price trend changes its direction by a specified percentage.

Transaction Cost

The costs associated with the buy and sell of a financial instrument.

Transaction Date

The date a transaction is executed.

Transaction Risk

It is associated with the exchange rate fluctuation which may cause a negative effect due to the time delays which may occur when entering into a contract and settling it.

Trend

Relates to the general movement or direction of a market or of the price of an asset.

Trend Channels

Are very useful tools in the forex world as correct analysis can help you to correctly determine where your entry point or exit point of a trade should be.

Trendline

It is one of the basic components of most technical analysis patterns. the construction of a trendline is simple - connect either the high prices or low prices on an asset’s chart. the resulting line is the trendline.

TRIN

Or traders index. a technical analysis indicator calculated by taking the advances-to-declines spread and dividing that by the volume of advances to declines.

Triple Bottom

It is a technical analysis tool used by traders. its main feature is that it is a bullish chart pattern characterized by three equal lows followed by a breakout above the resistance level. the appearance of the triple bottom indicates the existence of a downtrend, which is currently in the process of transforming into an upper trend.

Triple witching

It is a situation occurring on a regular basis and more specifically on the third friday of every third month. it is described by the simultaneous expiration or rollover of various futures and options contracts. the effect - the expiration forces traders to act by a certain date, causing trading volumes in the affected markets to rise.

Triple Exponential Average (TRIX)

It is a technical analysis tool used by traders to show the change in a triple exponentially smoothed moving average in percentages. the momentum indicator is applied to produce signals similar in nature to the macd.

True Strength Index (TSI)

Another momentum indicator supporting traders to identify short-term price swings while trading the direction of the trend. it is useful for the determination of the market state - if it is overbought or oversold.

Turtle Channel

A trading indicator similar to donchian channel with the difference that the turtle channel is using a different period for the highest high band and lowest low band. for trading an uptrend, investors are using an upper band of a longer time period than the lower band.

Two-way Price

Occurs when a buying and selling price is quoted for a transaction.

U
Ulcer Index (UI)

An indicator developed by peter g. martin and byron b. mccann that is used to measure the downside risk, in terms of both the depth and duration of price declines. the greater the value of the ui, the longer it takes for a stock to get back to the former high.

Ultimate Oscillator

A technical indicator which is used to measure momentum across multiple timeframes.

Unemployment rate

It is a macroeconomic indicator that represents the percentage of jobless people which are part of the workforce, which are actually able and willing to work. this indicator is considered as lagging because it only changes after the underlying economic conditions of a nation have already changed.

Uptick

A transaction of a financial instrument that occurs at a higher price than its previous transaction.

Uptick Rule

Also known as a “plus tick rule” represents a former regulation established by the securities exchange commission (sec) requiring every short-sale transaction to be executed at a price which is higher than its previous trade price.

USDX

Or the u.s. dollar index, is a measure of the u.s. dollar relative to a basket of currencies of the majority of the u.s. most significant trading partners.

V
Value Date

The date on which both sides to a transaction agree to exchange payments.

Volatility

A measure of the amount by which an asset price is expected to fluctuate over a given period. normally measured by the annual standard deviation of daily price changes (historic).

Volatility Index

It is usually dubbed the “fear index” since it gauges the expectations for asset price fluctuations for the next 30 days. more specifically, the vix tracks the implied volatility of maturing s&p500 options.

Volcker Rule

Is a federal regulation that generally prohibits banks from conducting certain investment activities with their own accounts and limits their dealings with hedge funds and private equity funds, also called covered funds. the volcker rule aims to protect bank customers by preventing banks from making certain types of speculative investments that contributed to the 2008 financial crisis.

W
Wash Trading

Buying or selling a good, asset, or stock from oneself. in other words, it is a series of transactions resulting in a zero sum gain.

Weak Shorts

Refers to the group of investors who hold a short position and are quick to exit their positions at the first sign of strength in the underlying asset.

Whipsaw

Slang for a condition of a highly volatile market where a sharp price movement is quickly followed by a sharp reversal. a trader is considered to be “whipsawed” when the price of the recently purchased security has abruptly moved in a direction opposite from the expected.

Whitelist

Is a list of registered and approved participants that are given exclusive access to contribute to an initial coin offering (ico) or a presale.

Y
Yard

Slang for one billion dollars.

Z
Zero Coupon Bond

A bond or debt security that pays no interest. the bond is initially offered at a discount to its redemption value.

Risk Warning:

Trading Contracts for Difference and Foreign Exchange is highly speculative and carries a level of risk that may not be suitable for all investors. You may lose some or all of your invested capital; therefore, you should not speculate with the capital you cannot afford to lose. You should be aware of the risks associated with trading CFD’s and Foreign Exchange. In addition, please take into account your current knowledge level of trading experience and seek independent advice if necessary. We kindly advise all our clients to make sure that you carefully have read all the available. Terms & Conditions and the included Risk Disclosure statement prior to undertaking any operations on our trading platform. We do reserve our rights to cancel all or a single client deal which is connected to any suspicious activity without preliminary notice.

Under no circumstances shall we have any liability to any person or entity for (a) any loss or damage in whole or part caused by, resulting from, or relating to any transactions related to CFDs or (b) any direct, indirect, special, consequential or incidental damages whatsoever. We strictly do not provide investment advice.

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