GlossaryThe Most Used Words In The Trading’s World


  • In the following list you will find the terms with the most relevant meaning used in trading:

     

    • A

    ASSET: Instrument use to determine a contract. That is currencies, indices, stocks and commodities
    ASK PRICE: It is the sell price of an asset
    AT THE MONEY: It’s the outcome of a trade. That is when the value of an asset, at expiry time, is the same as it was at the beginning

     

    • B

    BID PRICE: It is the buy price of an asset
    AT BEST: It’s used to indicate to the broker to buy or sell the asset at the best market price
    BASE CURRENCY: It’s the first currency in a pair of currencies
    BEAR MARKET: It’s a market with falling prices
    BULL MARKET: It’s a market with rising prices
    BREAK EVEN POINT: Amount of money needed to cover losses
    BROKER: It’s an intermediary between traders and the financial market

     

    • C

    CABLE: It’s another name for the currencies couple of GBPUSD
    CALL: The value of an asset will be higher at expiry time than it was at the beginning
    CANDLESTICK CHART: It’s a type of display data in a chart, which provides more information as the opening price and closing price and also the maximum price and minimum price too
    COMMODITY: Raw materials such as oil, gold, corn, wheat, etc
    COUNTER CURRENCY: It’s the second currency in a pair of currencies
    CURRENT PRICE: The price of something in real time
    CYSEC: Cyprus Securities and Exchange Commission

     

    • D

    DEPRECIATION: It’s a fall of currency value
    DRAWDOWN: Continues maximum loss in a period, between maximum and minimum relatives

     

    • E

    ECONOMIC CALENDAR: It contains macroeconomic daily news
    EXPIRED POSITION: Deadline of a position
    EXPIRY TIME: The time when a position expires

     

    • F

    FOREX: Foreign Exchange Market, it’s the currency market
    FUNDAMENTAL ANALYSIS: It’s used to analysis macroeconomic data for a trading strategy

     

    • G

    GAIN: The real payout
    GROSS DOMESTIC PRODUCT: The total value production and income of a country

     

    • H

    HIGH/LOW: The asset will expire at a price higher than the target price or will expire at a lower price than the target price

     

    • I

    INDEX: Represents a basket of stocks
    INFLATION: Rising of consumer goods price
    INSIDE/OUTSIDE: The position chosen by a trader for a Boundary Option Binary
    IN THE MONEY: A trade that ends in the way chosen by a trader
    INVESTMENT AMOUNT: The money invested for a position

     

    • K

    KIWI: It’s another name for the New Zealand dollar

     

    • M

    MARGIN: Starting deposit used to open an account
    MARKET PRICE: A quoted price of an asset

     

    • N

    NO TOUCH: An option doesn’t get over of the target level

     

    • O

    ONE TOUCH: An option get over of the target level
    OUT OF THE MONEY: A trade that doesn’t end in the way chosen by a trader
    OVER THE COUNTER: Markets in which trading takes place outside the official stock exchange circuits

     

    • P

    PAYOUT: It’s the gain obtain from a trade
    PIP: The minimum change of a price that a given exchange rate can make
    PIVOT POINT: It’s support or resistance, calculate through mathematical calculations. The necessary data are the maximum price, the minimum price, the closing price
    PUT: The value of an asset will be lower at the expiry time than it was at the beginning

     

    • Q

    QUOTE: An indicative market price

     

    • R

    RANGE: Difference between the higher price and the lower price
    RATE: The price of a currency relative to another
    RESISTANCE: Pricing zone that stops uptrend movement
    RETURN: That is the amount gains by trader if the option expires “in the money”
    REVALUATION: An increase of the cross rate of a currency
    ROLL OVER: It’s to extend the expiration of an investment

     

    • S

    SUPPORT: Pricing zone that stops downtrend movement
    SPREAD: The different between the ask price and the bid price
    STOCK: Shares of a specific company
    STRIKE PRICE/ TARGET PRICE: The price of an asset at the time of buying and selling it
    STRIKE RATE: The same thing of strike price
    SWAP: Simultaneous buy and sell of the same amount of a currency

     

    • T

    TECHNICAL ANALYSIS: It’s used to examine historical data to predict a trend
    TICK: Minimum change in price
    TURNOVER: The total value of money of all transactions in a period of time

     

    • V

    VOLATILITY: It’s the percentage change in the price of a financial asset over time
    WITHDRAWAL: Means to take out money from the account

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