Trading Glossary

In Educational, Glossary


The Trading Glossary provided by Educational Trades is born to help all beginners traders to find what a word means.

A

AGM – The Annual General Meeting of shareholders is an annual meeting between the shareholders of a company and the board of directors. It usually represents the only moment of meeting between board members and shareholders over the course of a year, and this is an opportunity for the council to present the company’s annual report.

Alpha – Jensen’s alpha measures the return of an investment portfolio relative to a given benchmark index, usually a stock index. In other words, it indicates a higher return than would be expected from the market over a given period of time. Jensen’s alpha can be positive or negative, depending on its proximity or distance from market levels.

Arbitrage – Arbitrage refers to the practice of buying an asset and selling it immediately on another market to take advantage of the price difference.

Ask – The Ask refers to the price at which an asset can be purchased from a seller. It can be defined as the demand or the asking price.

Asset – Conditional activity binary option (currency crosses, raw material, stock index etc. etc.)

At the money – This term is used for operations that are closed just as they opened. In simpler terms means a draw option, where there is no profit, no loss.

Auction – In trading, auction means the process during which stock prices are determined before, after or during the auction to stabilize the book.

Automated Trading – Automated trading is the use of algorithms to open orders.

Averaging Down – When a trader buys an asset, the price of the resource decreases and, if the trader buys more, it is called an average reduction.

B

Base Currency – In trading the term basic currency has two main definitions: the first currency listed in a currency pair, or the accounting currency used by banks and other companies.

Base Rate – A base rate is the interest rate that a central bank, like the Bank of England or the Federal Reserve, will charge commercial banks for loans. The base rate is also known as the bank rate or the base interest rate.

Basis Point – A basis point is a unit of measurement used to quantify the change between two percentages: it can also be referred to as “bp”, which is pronounced “beep” or “beep”. A base point is one hundredth of one percent or 0.01%.

Bear – the term “bear” refers to those traders who expect downward trends for a market or any other financial instrument.

Bear Market – When the market is on a descending and sustained trajectory, with some optimism on the part of the traders to carry out a rally, we talk about the bear market.

Beta – The beta of a financial instrument is a measure of its risk or its volatility compared to the market.

Bid – In trading, the bid (offer) is the amount a buyer is willing to pay for the purchase of a financial instrument. It is the opposite of ask.

Blue Chip Stock – The blue chip shares are shares of reliable, financially stable and consolidated companies: they are at the top in their sector or listed on a known index.

BoE – The BoE is the central bank of the United Kingdom, founded in 1694. It has great importance in monetary policy decisions.

Bollinger Bands – Bollinger bands are a well-known indicator of technical analysis, developed by pioneering trader John Bollinger in the 1980s.

Book – The book value, or book value of the net assets, defines the net quotation of a company or an asset according to the financial status.

Bond Trading – Bond trading is a way to profit from fluctuations in the value of corporate or government bonds. Many consider it an essential part of a diversified trading portfolio, alongside stocks and liquidity.

Bonds – Bonds are a form of financial investment that involves lending money to an institution for a specific period of time. They are usually available in two varieties: corporate bonds and government bonds, depending on the type of institution to which it is suitable.

Bottom Line – A company’s bottom line is an important factor in stock trading. Otherwise, it can be used to refer to a company’s earnings or earnings per share (EPS).

Brent Oil – Brent Crude is one of the three oil benchmarks used by traders operating on futures and other oil derivatives. The other two benchmarks are West Texas Intermediate (better known as WTI) and Dubai / Oman.

Brexit – Brexit is a shorthand term used to describe the withdrawal of the United Kingdom (UK) from the European Union (EU) – it is a combination of ‘British’ and ‘exit’.

Broker – intermediary who takes positions on behalf of third parties, so all the online websites where you can invest in binary options.

Bull – Bulls are speculators who believe that a market, an instrument or a sector is moving upwards. This conviction puts them at odds with the bears, who have a pessimistic view on the direction of the market.

Bull Market – When a market, instrument or sector is on an upward trend, it is generally referred to as a bull market.

Buy – Buying a financial instrument means acquiring ownership. Often in trading the purchase of an asset does not involve the possession of the physical good.

Buyback – The buyback, or repurchase of treasury shares, is the purchase of own shares by a company.

C

Cable – Cable is a term in forex and indicates the exchange rate between the British pound and the US dollar. It can also be referred to GBP / USD or GBPUSD.

Call – the technical term for the purchase an option on the upside.

CAPEX – The capital expenditure (“CAPEX”) are capital investments, or the expenses that companies incur to purchase tangible assets.

Capital Gain – The capital gain is the profit realized on the sale of assets. It occurs when traders sell a financial instrument, such as shares or commodities, at a higher price than the one paid to buy it.

Cash Flow – Cash flow is the amount of money that enters and leaves a company’s accounts, as reported in earnings announcements. It can refer to a single project or to the entire business.

Chargeable Gain – Chargeable gain refers to a profitable change in the price of an asset, measured between the time the assets were purchased and the time they were sold. When applied to financial markets, most profits – whether it is going long or going short – are subject to capital gains tax (CGT).

Closing time – hours, or timeframe chosen for the option closing.

Closing Price – The closing price of an asset is the last level at which it was traded on a given day. This price is often determined by an auction.

Commission – Commission is the charge levied by an investment broker for making trades on a trader’s behalf.

Commodity – A commodity is a basic physical good, often used as a raw material in the production of goods or services.

Contract For Difference – Contracts for difference, or CFDs, are a type of financial derivative used in CFD trading. They can be used to exchange a variety of financial markets such as stocks, forex, commodities, indices or bonds.

Convexity – The convexity of bonds is a measure of the relationship between the price of a bond and interest rates. It is used to assess the impact that an increase or decrease in interest rates may have on the price of a bond – which highlights the risk exposure of a bond holder.

Cost Of Carry – The cost of maintaining an investment position is often referred to as the cost of the carry or load. It can come in many forms, including interest on margins or loans used to trade, or the cost of storage and insurance associated with holding a commodity.

CPI – CPI stands for consumer price index, an average of several consumer goods and services that are used to give an indication of inflation.

Crystallization – Crystallization means selling an asset to make capital gains or losses. When an investor buys an asset, any increase or decrease in the market price will not automatically result in profits or losses – this will be realized only after the position has been closed.

Currency Future – A currency future is a contract that specifies the price at which a currency can be bought or sold and sets a specific date for the exchange.

D

Day Trading – Day trading is a strategy of short-term investment that involves closing out all trades before the market closes.

Delta – The delta of a derivative is defined as its price movement in relation to the change in the price of its underlying asset. Sometimes it can also be referred to as a hedging relationship, and is most often used when it comes to options.

Derivatives – Derivatives are financial products that derive their value from the price of an underlying asset. Derivatives are often used by traders as a device to speculate on future price movements of an asset, both increasing and decreasing, without having to buy the asset itself.

DFB – DFB is the abbreviation of daily funded bet, a term used in spread betting to describe a position that remains open until you decide to close it. For each day that your bet remains open, an interest adjustment is made to your account to reflect the cost of funding your position – hence the term daily funded bet.

Digital Option – A digital option is a type of option that offers the opportunity for a fixed payment if the underlying market price exceeds a predetermined limit, called the strike price.

Dividend – A dividend is the portion of profit that a company chooses to return to its shareholders, usually expressed as a percentage.

DMA – During trading, DMA is synonymous with direct market access. It is a way of negotiating that offers more flexibility and transparency than traditional negotiations (which is usually called OTC or over-the-counter). It is suitable for advanced traders.

Downward – Situation in which an asset after a phase of ascent takes a downward direction.

Drawdown – Percentage to risk, or risk in making online trading.

E

Earnings Per Share – Earnings per share, or EPS, is an important metric in a company’s earnings figures. It derives from the total amount of profit generated in a period, divided by the number of shares of the listed company.

ECB – Acronym of European Central Bank, the central bank for the Euro Zone, which has the task of defining the monetary policy of the area of competence.

Economic Calendar – Tool for consultation where they are publish market news which can affect, more or less incisively, on the performance of a particular asset.

Entry point – the exact moment in which you (or your auto trading software) open an order.

Exchange – An exchange is an open and organized market for commodities, stocks, securities, derivatives and other financial instruments. The terms exchange and market are often used interchangeably, since both describe an environment in which the listed products can be exchanged.

Exchange Delivery Settlement Price – EDSP stands for exchange delivery settlement price, and refers to the price at which exchange-traded derivative contracts are settled. Stock exchanges use EDSP to calculate the amount that each party to an options or futures contract owes at the time of that contract’s expiry.

Execution – In trading, execution is the completion of a purchase or sale order by an operator. It is carried out by a broker.

Expiration – Expiration timeframe chosen for the closure of a position (1 minute, 15 minutes, 1 Day etc., etc.)

Exposure – In trading, exposure is a generic term that can mean three things: the total market value of your open trades, the total amount of risk possible at a particular point or the portion of a fund invested in a particular market or asset

F

Fair Value – Fair value has two meanings for investors. Generally, the value attributed to a security by a single investor or intermediary is meant, but in term trading, it may refer to the expected price of a market that is reflected in the cost to open a position.

FCA – The FCA, or Financial Conduct Authority, is the United Kingdom’s financial regulatory body. It is the successor to the FSA, or Financial Services Authority.

Federal Reserve – The Federal Reserve bank, or the ‘Fed’ for short, is the central bank in charge of monetary and financial stability in the United States. It is part of a wider system – known as the Federal Reserve system – with 12 regional central banks located in major cities across the US.

Fibonacci Retracement – A Fibonacci retracement is a key technical analysis tool that uses percentages and horizontal lines, drawn on price charts, to identify possible areas of support and resistance. Identifying these areas is useful for traders as it can help them decide when to open and close a position, or when to apply arrests and limits to their operations.

Fill – Fill is the term used to refer to the satisfying of an order to trade a financial asset. It is the basic act of any market transaction – when an order has been completed, it is often referred to as ‘filled’ or as the order having been executed. However, it is worth noting that there is no guarantee that every trade will become filled.

Financial Instrument – A financial instrument is a monetary contract between two parties, which can be traded and settled. The contract represents an asset to one party (the buyer) and a financial liability to the other party (the seller).

Financial Market – The market can have different meanings in investments. It is generally defined as a means by which activities are exchanged, with their value determined by supply and demand.

Fixed Cost – Fixed costs are the costs incurred by a company that do not vary with the scale of production. They are one of two main types of cost associated with companies’ balance sheets: the others are variable costs.

Floating Exchange Rate – A floating exchange rate refers to a currency in which the price is determined by supply and demand factors relating to other currencies. A floating exchange rate is different from a fixed or anchored exchange rate, which is entirely determined by the government of the currency in question.

FOMC – The FOMC, or Federal Open Market Committee, is the branch of the Federal Reserve bank that is in charge of short and long-term monetary policy decisions.

Forex – Forex is how market participants convert one currency to another. It can variously be referred to as foreign exchange, FX, or currencies.

Forward Contract – A forward contract is a contract that has a defined expiration date. The contract can vary between different instances, making it a non-standardized entity that can be customized based on the resource being exchanged, the expiration date and the amount of the negotiation.

Fundamental Analysis – Fundamental analysis is a method of valuing assets, based on external influences and financial communications. Measure economic, financial and market conditions.

Funding Charges – Funding charges, or interest charges, are the fees levied on leveraged positions that are held open overnight.

Futures Contract – Futures contracts represent an agreement between two parties to trade an asset at a defined price on a specified date in the future. They are also often referred to simply as ‘futures’.

G

Gamma – The Gamma is a derivative of the delta: the relationship between the price of a derivative and the price of its underlying asset. In particular, gamma is the movement of the delta in relation to the price of the underlying assets.

GDP – The GDP corresponds to the gross domestic product or the total value of the goods and services produced in a country in a given period. It is used as an indicator of the size and health of a country’s economy.

Gearing Ratio – A gearing ratio is a measure used by investors to establish a company’s financial leverage. In this context, leverage is the amount of funds acquired through creditor loans – or debt – compared to the funds acquired through equity capital.

Grey Market -By taking a position on a grey market, you’re taking a position on a company’s potential market cap ahead of its initial public offering (IPO). The price of a grey market is a prediction of what the company’s total market capitalisation will be at the end of its first trading day.

Gross Margin – Gross margin is a way to measure the amount of profit a company can make from its revenue.

Guaranteed Stop – A guaranteed stop is a form of stop loss that offers an absolute guarantee of executing your trade at the level you specify.

H

Handle – In trading, the handle has two meanings. In most markets, it means that whole numbers are included in a price quotation, without the decimals included. In forex, the handle refers to that of the price that appears in both numbers of the spread.

Hawks And Doves – Hawks and doves are terms used by analysts and traders to categorise members of Central Bank committee ahead of their votes on monetary policy.

Hedge – A Hedge is an investment or trade designed to reduce existing risk exposure. The process of risk reduction through investments is called “hedging”.

Heikin Ashi – Heikin Ashi is a type of chart pattern used in technical analysis. Heikin Ashi charts are similar to a candlestick charts, but the main difference is that a Heikin Ashi chart uses the daily price averages to show the median price movement of an asset.

Helicopter Money – Helicopter money is the term used for a large sum of money that is printed and distributed among the public, to stimulate the economy during a recession or the interest rate to zero. It’s a helicopter crash, referring to the helicopter that shoots supplies from the sky.

High Frequency Trading – High frequency trading (or HFT) is a form of advanced trading platform that processes a high numbers of trades very quickly using powerful computing technology. It can be used to either find the best price for a single large order, or to find opportunities for profit in the market in real time.

I

Ichimoku Cloud – The Ichimoku cloud is a technical analysis indicator that defines support and resistance levels, stimulates momentum and provides trading signals. In Japanese, it is called ‘Ichimoku Kinko Hyo’ which roughly means ‘balance diagram of a single look’ – because with a single glance, traders can receive a series of information.

Index – In trading, an index is a grouping of financial assets that are used to give a performance indicator of a particular sector. The plural term is indices.

Indicator – A graphic tool used for technical analysis, usually in the window’s price. See the Indicators chapter.

Indices Trading – Indices trading is the means by which traders attempt to make a profit from the price movements of indices.

Inflation – Inflation is the increase in the cost of goods and services in an economy. As that in turn means that each unit of the currency’s economy is worth less of any good or service, inflation can also be viewed as a devaluing of currency.

Interest – In finance, interest can have more than one definition. Firstly it refers to the charge levied against a party for borrowing money, which can be either a cost or a means of making profit for a trader. Secondly, it can mean the portion of a company’s stocks held by a particular shareholder.

Interest Rate – The amount that a lender charges to a borrower for the loan of an asset, usually expressed as a percentage of the amount borrowed. That percentage usually refers to the amount being paid each year (known as annual percentage rate, or APR) but can be used to express payments on a more or less regular basis.

In the money – the technical term for an operation closed in profit.

Intrinsic Value – Intrinsic value is a way of describing the perceived or true value of an asset. This is not always the same as the current market price because assets can be overvalued or undervalued. Intrinsic value is a common part of fundamental analysis, which investors use to evaluate stocks, as well as being used in option pricing.

IPO – Initial Public Offering

L

Lateral Phase or lateralization – Stage at which the price has not ascending or descending trend.

Leverage – Leverage is a concept that can allow you to multiply your exposure to a financial market without committing extra capital.

Leveraged Products – Leveraged products are financial instruments that enable traders to gain greater exposure to the market without increasing their capital investment. They do so by using leverage.

Liabilities – A company’s liabilities are the debts and obligations represented on its balance sheet. They are the opposite of assets.

Limit Order – A limit order is an instruction to your broker to execute a trade at a particular level that is more favourable than the current market price.

Limit Up/Down – Limits Up and limits down are the maximum amounts that future commodities can increase (limit to the maximum) or decrease (limit to the downside) on each individual trading day.

Liquidity – Liquidity is used in finance to describe how easily an asset can be bought or sold in the market without affecting its price – it can also be known as market liquidity. When there is a high demand for an asset, there is high liquidity, as it will be easier to find a buyer (or seller) for that asset.

Long – When used in trading, long refers to a position that makes profit if an asset’s market price increases. Usually used in context as ‘taking a long position’, or ‘going long’.

Lot – A lot is a standardised group of assets that is traded instead of a single asset

J

Japanese candle – or more commonly candle. Graphic index used to view the price trend.

M

Maintenance Margin -The maintenance margin is the amount that must be available in funds in order to keep a trading margin open. It is also known as a variation margin.

Margin Call – A margin call is the term for when a broker requests an increase maintenance margin from a trader, in order to keep a leveraged trade open.

Margin – In trading, margin is the funds required to open and maintain a leveraged position.

Market Capitalization – Market capitalization is the total market value of a company’s shares on the market. It is often shortened to market capitalization. Market capitalization is a simple way for investors to determine the size of a company, which can help assess the risk of investing in its shares.

Market Maker – A market maker is an individual or institution that buys and sells large amounts of a particular asset in order to facilitate liquidity.

Market Order – A market order is an instruction from a trader to a broker to execute a trade immediately at the best available price.

Market Value – While the market value reflects what a business is for market participants, the book value reflects what a business is worth according to its financials (its books). The calculation of the book value of a company is the total of tangible assets minus its liabilities.

Metatrader – Trading Platform used all around the world

Moving Average Convergence/Divergence – The moving average convergence/divergence (MACD) is a technical analysis indicator that aims to identify changes in a share price’s momentum. The MACD collects data from different moving averages to help traders identify possible opportunities around support and resistance levels.

Moving Average – A moving average (often abbreviated as MA) is a common indicator in technical analysis, used to examine asset price movements while reducing the impact of random price peaks.

Multiplier Effect – The multiplier effect is the term used to describe the impact that changes in monetary supply can have on economic activity. When an individual, government or company spends money it has a trickle-down effect to businesses and individuals. The resulting impact can be much wider than the initial action.

N

Net Change – The net change is the difference between the closing price of an asset from one day to the next. It is a method commonly used to price stock and fund price movements.

Net Income – Net income is the total amount of profit (often known as earnings) made by a company, listed in its earnings report.

Non Farm Payrolls – Non-farm payrolls are a monthly statistic representing how many people are employed in the US, in manufacturing, construction and goods companies. They can also be known as non-farms, or NFP.

O

Off Book – An ‘off-book’ trade refers to the process of trading shares away from an exchange or regulated body. They are usually executed via the over-the-counter (OTC) market. Off-book transactions are made directly between two parties, outside or ‘off’ of the order books.

Offer – Offer is the term used when a trader expresses an intention to buy an asset or a financial instrument from another operator or institution.

OPEC – OPEC is the Organisation of the Petroleum Exporting Countries. It was founded in 1960 by Saudi Arabia, Venezuela, Iraq, Iran and Kuwait. The other countries that have joined OPEC since are Libya, the United Arab Emirates, Algeria, Nigeria, Ecuador, Gabon, Angola, Equatorial Guinea and the Republic of the Congo – bringing OPEC’s membership to 14, as of January 2019.

Opening – The term Opening has different meanings in finance. It may refer to the opening of daily exchanges on the stock exchange or to an order or position not yet executed.

Option – An option is a financial instrument that offers you the right – but not the obligation – to buy or sell an asset when its price moves beyond a certain price with a set time period.

Option Spread – An option spread is a strategy used in option trading. It involves the purchase and sale of multiple options on the same underlying asset that are almost identical to each other but with a different strike price or maturity.

Oscillator – Graphic tool used for technical analysis, generally outside the window’s price. See theIndicators chapter.

OTC – OTC stands for over-the-counter, and refers to a trade that is not made on a formal exchange. It is often also referred to as off-exchange trading.

Out of the money – the technical term for a transaction closed at loss.

Over-bought – Situation in which a particular asset is in high purchase.

Overexposure – Overexposure in trading is the term used to describe the mistake of taking too many risks. Typically, it is when a trader makes the technical mistake of investing too much capital in a single position or market.

Over-sold – Situation in which a particular asset is in strong sales.

P

Payout – Profit percent of a given asset.

Pip – A pip is a measure of movement in forex trading, defined as the smallest move a currency can make.

PMI – PMI is an economic indicator, used to measure the health of a particular sector within an economy. In the UK, for instance, Markit produce a PMI for the manufacturing, services and construction industries.

Position – A position is the expression of a market commitment, or exposure, held by a trader. It is the financial term for an exchange that is currently able to sustain a profit or a loss – known as an open position – or an exchange that has recently been canceled, known as a closed position. Profit or loss on a position can only be realized after it has been closed.

Pullback – A pullback is a temporary pause or dip in an asset’s overall trend. The term is sometimes used interchangeably with ‘retracement’ or ‘consolidation’. However, a pullback should not be confused with a reversal, which is a more permanent move against the prevailing trend.

Put – the technical term for the purchase of a downward option.

Q

Quote Currency – The quote currency is the second currency listed in a currency pair. It is also known as the counter currency.

R

Rally – A rally is a period in which the price of an asset, a market or an index sees a constant upward momentum. Typically, a rally will come after a period of low or falling prices.

Range – The range is the difference between the highest and the lowest price of a market in a given period. It is mainly used as an indicator of volatility: if a market has a wide range, it is a sign that it was volatile in the period analyzed.

Rate Of Return – Rate of return (RoR) is the loss or gain of an investment over a certain period, expressed as a percentage of the initial cost of the investment. A positive RoR means the position has made a profit, while a negative RoR means a loss. You will have a rate of return on any investment you make.

Ratio Spread – A ratio spread is a strategy used in option trading, in which a trader will hold an unequal number of buying and selling positions on a single underlying asset simultaneously.

Resistance – The point at which the peak of the price could rebound and reverse its direction.

Reversal – A reversal is a turnaround in the price movement of an asset: when an upward trend (or a rally) becomes a fall (a correction), or vice versa. They can also be referred to as trend reversals.

Rollover – In trading, a rollover is the process of keeping a position open beyond its expiry.

RSI – RSI stands for relative strength index. It is a key tool used in technical analysis, which assesses the amount of resources to assess whether they are in overbought or oversold territory.

S

Scalping – A scalp in trading is the act of opening and then closing a position very quickly, in the hope of profiting from small price movements.

Shadow (Candle) – Part of Japanese candle indicated by a vertical line. It represents the highest or lowest point reached by the candle, however, different from the closing point.

Share Buyback – Share buyback, or share repurchase, is when a company buys back its own shares from investors. It can be seen as an alternative, tax-efficient way to return money to shareholders. Once shares are repurchased they are considered cancelled, but they can be kept for redistribution in the future.

Shares – The shares are the units of a company’s property, usually traded on a stock exchange. They are also known as actions or actions.

Short – In trading, short describes a trade that will incur a profit if the asset being traded falls in price. It is also often referred to as going short, shorting or sometimes selling.

Short Selling – Short selling is the act of selling an asset that you do not currently own, in the hope that it will decrease in value and you can close the trade for a profit. It is also known as shorting.

Slippage – When the price at which an order is executed does not match the price at which it was made, it is referred to as slippage.

Spot – In trading, spot refers to the price of an asset for immediate delivery, or the value of an asset at any exact given time. It differs from an asset’s futures price, which is the price for delivery at some date in the future, or its expected price.

Spread Betting – Spread bets are a leveraged financial derivative. When you bet on spreads, you are making a bet on the direction in which a market will move. The accuracy of your bet determines the profit or loss when the position is closed.

Spread – In finance, the spread is the difference in price between the buy (bid) and sell (offer) prices quoted for an asset.

Stock Analysis – The stock analysis is the study and valuation of the stock market. It can take the form of analysis on a single security, a sector or a larger area.

Stock Exchange – A stock exchange is a market in which financial instruments are traded (such as commodities, shares or derivatives). They can be either physical or purely digital.

Stock Index – A stock index is a group of shares that are used to give an indication of a sector, exchange or economy. Usually, a stock index is made up of a set number of the top shares from a given exchange.

Stop Order – Stop orders are types of orders that instruct the broker to execute a transaction when it reaches a certain level: one that is less favorable than the current market price. They can also be known as stop-loss orders.

Straddle – A straddle is a type of option trading strategy that allows traders to speculate on whether a market is going to become volatile or not, without having to predict a specific price movement. The stages involve the purchase or sale of simultaneous calls and sales options with corresponding strike prices and deadlines.

Support – The point at which a minimum price spike could bounce and reverse its direction.

T

Technical Analysis – Technical analysis is a kind of examining and forecasting price movements in financial markets, based on the study of price graphs.

Trailing Stop – A trailing stop is a type of stop loss that automatically follows the positive market movements of an asset you are trading. If your position moves favorably but then reverses, a trailing stop can block your profits and close the position.

Treasury Stocks – Own shares are part of the stocks held in the treasury of a company. They are not included in the total number of listed shares, do not pay dividends and do not give voting rights.

Trend – Trend, this is the direction that takes a particular asset. It may be rising (bullish), downward (bearish) or horizontal, also if this is not exactly a trend.

Trend Line – Drew or imagined line on the chart points the direction of the trend.

V

Volatility – A market’s volatility is its likelihood of making major, unforeseen short-term price movements at any given time.

Volume – In trading, volume is the amount of a particular asset that is traded over a certain period of time. It is often presented along with price information, as it offers an additional dimension when looking at the price history of an asset.

VWAP – VWAP is the abbreviation for volume-weighted average price, which is a technical analysis tool that shows the ratio of an asset’s price to its total trade volume. It provides traders and investors with a measure of the average price at which a stock is traded over a given period of time.

Y

Yeld – The yeld is the income earned from an investment, most often in the form of interest or dividend payments. Yield is one of the ways in which investments can earn trader money, while the other is the eventual closing of a position for profit.

If you wish to suggest some definitions that are still not available in our Trading Glossary, feel free to contact us.

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