The language of markets
Trading terms,
made useful.
From ask price to zero-sum mechanics: concise explanations, practical examples and the detail that usually gets lost in the fine print.
199 definitions8 collectionsA–Z navigation
Showing all 199 terms
Nothing under that spelling.
Try a shorter word or switch back to all collections.
1 term
10 terms
Risk & accountsAccount balanceAccount balance is the cash-based value recorded in a trading account after deposits, withdrawals, and closed transaction results, subject to the broker’s...
→
Risk & accountsAccount equityAccount equity is the current net value of a trading account after adding or subtracting the marked-to-market profit or loss of open positions from its balance...
→
Trading stylesAlgorithmic tradingAlgorithmic trading is trading in which a computer algorithm automatically determines one or more order parameters, such as whether to place an order, its...
→
CryptoAltcoinAltcoin is an informal market term for a crypto asset other than Bitcoin; depending on the speaker, it may include or exclude Ether and may refer to either...
→
Regulation & safetyAnti-money launderingAnti-money laundering (AML) is the set of laws, controls, and supervisory measures designed to prevent, detect, and report the use of financial systems to...
→
Regulation & safetyAppropriateness testAn appropriateness test is an assessment in which an investment firm asks about a client’s knowledge and experience to judge whether a proposed non-advised...
→
Forex basicsAsian sessionThe Asian session is the portion of the global forex trading day associated with activity in Asia-Pacific financial centers, especially Tokyo, alongside centers...
→
Forex basicsAsk priceThe ask price is the lowest price at which a market participant is currently willing to sell a currency pair. A trader buying at market will ordinarily transact...
→
CryptoAutomated market makerAn automated market maker is a smart-contract-based trading mechanism that prices and executes trades against asset reserves using a defined mathematical rule...
→
Market analysisAverage true rangeAverage true range, or ATR, is a technical volatility indicator that averages each period’s true range over a chosen lookback. True range captures the largest...
→
14 terms
Trading stylesBacktestingBacktesting is the evaluation of a trading strategy by applying its rules to historical market data to estimate how it would have performed during an earlier...
→
Forex basicsBase currencyThe base currency is the first currency listed in a currency pair and the unit being priced. In EUR/USD, EUR is the base currency, so a quote of 1.08435 means...
→
Orders & executionBest executionBest execution is a broker’s duty to use reasonable diligence to seek the most favorable terms reasonably available for a customer order, considering factors...
→
Forex basicsBid priceThe bid price is the highest price at which a market participant is currently willing to buy a currency pair. A trader selling at market will ordinarily...
→
Forex basicsBid–ask spreadThe bid–ask spread is the difference between the best available bid price and ask price for an instrument. In forex, it is commonly expressed in pips or...
→
CryptoBitcoin halvingBitcoin halving is the protocol-scheduled reduction by 50% of the new bitcoin subsidy available in each newly mined block. It occurs every 210,000 blocks...
→
CryptoBlockchainA blockchain is a distributed digital ledger in which cryptographically signed records are grouped into blocks, validated under network rules, and linked to...
→
CryptoBlockchain bridgeA blockchain bridge is a protocol or system that enables tokens, messages, or other data to move between separate blockchain networks. For token transfers, a...
→
CryptoBlockchain oracleA blockchain oracle is a mechanism that supplies a smart contract with data or events from outside its native blockchain, or communicates blockchain information...
→
Regulation & safetyBoiler room scamA boiler room scam is a large-scale investment fraud that uses persistent, high-pressure sales tactics to persuade people to send money for investments that are...
→
Market analysisBollinger BandsBollinger Bands are adaptive price bands consisting of a middle moving average and upper and lower bands set a chosen number of standard deviations from that...
→
Market analysisBreakoutA breakout is a price move beyond a previously identified support, resistance, trend line, or chart-pattern boundary. Analysts use the term to describe the move...
→
Regulation & safetyBroker complaintA broker complaint is a formal statement to a brokerage firm alleging a problem with its service, conduct, account administration, disclosures, execution...
→
Regulation & safetyBroker licenceA broker licence is the authorization, registration, or combination of regulatory approvals that permits a broker to conduct specified regulated activities...
→
27 terms
Market analysisCandlestickA candlestick is a chart marker that summarizes an instrument’s open, high, low, and close for one selected period. Its body shows the distance between open and...
→
Forex basicsCarry tradeA carry trade is a cross-currency strategy that seeks to benefit from an interest-rate differential by funding exposure in a lower-yielding currency and...
→
CFDsCash CFDA Cash CFD is a contract for difference that references a current, or near-current, cash-market price rather than a specified futures contract with a fixed...
→
Market analysisCentral bankA central bank is a public institution responsible for monetary policy and, depending on its legal mandate, functions such as issuing currency, operating or...
→
CryptoCentralized exchangeA centralized exchange is a crypto trading platform operated by a company or other central intermediary that typically maintains customer accounts, matches...
→
CryptoCirculating supplyCirculating supply is the estimated number of a cryptocurrency’s coins or tokens considered publicly available and able to trade, excluding assets that are...
→
Regulation & safetyClient money segregationClient money segregation is an arrangement under which a regulated firm holds eligible customer funds separately from its own operating money, usually in...
→
Regulation & safetyClone firmA clone firm is an unauthorized scam operation that impersonates a real authorized financial firm by copying its name, registration number, address, website...
→
CryptoCoinA coin is a crypto asset native to its own blockchain, meaning the network records and transfers it under the blockchain’s core protocol rules. A coin may pay...
→
CryptoCold walletA cold wallet is a crypto wallet arrangement in which private keys are kept offline or otherwise isolated from internet-connected systems when not signing...
→
CFDsCommodity CFDA Commodity CFD is a contract for difference whose value is linked to the quoted price of a commodity, such as crude oil, gold, natural gas or wheat, without...
→
Market analysisConsumer price indexThe consumer price index (CPI) measures the average change over time in prices consumers pay for a representative basket of goods and services. Its monthly and...
→
CFDsContract for differenceA contract for difference (CFD) is an over-the-counter derivative in which the parties exchange the gain or loss from the change in an underlying asset’s price...
→
CFDsContract sizeContract size is the quantity of an underlying asset, or the stated monetary exposure per price unit, represented by one CFD contract. It converts a movement in...
→
Trading stylesCopy tradingCopy trading is an arrangement in which a customer’s account automatically or manually replicates transactions, or trading signals, from another trader or...
→
Forex basicsCross currency pairA cross currency pair is an FX pair quoted between two currencies without the U.S. dollar on either side, such as EUR/JPY, GBP/CHF, or AUD/NZD. Its exchange...
→
CFDsCrypto CFDA Crypto CFD is a contract for difference linked to the price of a cryptocurrency or cryptoasset, enabling speculation on price movements without buying...
→
CryptoCrypto custodyCrypto custody is the safeguarding and control arrangement for the private keys or other authorization mechanisms needed to transfer crypto assets. It may be...
→
CryptoCrypto market capitalizationCrypto market capitalization is an estimate of a crypto asset’s aggregate market value, usually calculated as its current unit price multiplied by its...
→
CryptoCrypto miningCrypto mining is the process used by proof-of-work blockchains in which specialized computers repeatedly calculate hashes in an attempt to produce a block that...
→
CryptoCrypto walletA crypto wallet is software, hardware, or a service that manages the cryptographic credentials used to view blockchain addresses and authorize transactions. It...
→
CryptoCryptocurrencyCryptocurrency is a crypto asset designed to be transferred on a blockchain or similar distributed-ledger network, typically using cryptographic keys and...
→
Forex basicsCurrency correlationCurrency correlation is the statistical tendency for the returns of two currency pairs, or of two currencies against a common reference, to move in the same...
→
Forex basicsCurrency interventionCurrency intervention is an official-sector transaction, usually by a central bank or acting for it, that buys or sells foreign currency or related instruments...
→
Forex basicsCurrency pairA currency pair is a quotation that expresses the value of one currency in terms of another, such as EUR/USD. The first currency is the base currency, the...
→
Forex basicsCurrency pegA currency peg is an exchange-rate policy in which a monetary authority commits to keep its currency at a fixed rate, or within a narrow range, against another...
→
CryptoCustodial walletA custodial wallet is a crypto wallet arrangement in which an exchange or other third-party provider controls the private keys and processes transactions for...
→
10 terms
Trading stylesDay tradingDay trading is a trading style in which positions are opened and closed within the same trading day to seek to benefit from intraday price changes. It generally...
→
CryptoDecentralized applicationA decentralized application, or dApp, is software whose core functions use smart contracts or other code on a decentralized network rather than relying entirely...
→
CryptoDecentralized exchangeA decentralized exchange is a crypto trading arrangement in which users interact with blockchain-based smart contracts or protocols to exchange assets, rather...
→
CryptoDecentralized financeDecentralized finance, or DeFi, is a set of blockchain-based financial services that use smart contracts to provide functions such as trading, lending...
→
Risk & accountsDemo accountA demo account is a broker or platform account that simulates trading with virtual funds and records hypothetical profits and losses instead of placing trades...
→
CryptoDepegA depeg is a sustained or material departure of an asset’s market price from its intended reference value, most often when a stablecoin trades above or below...
→
Orders & executionDirect market accessDirect market access is an arrangement that enables a customer or intermediary to submit orders electronically to a trading venue using a broker-dealer’s market...
→
CFDsDividend adjustmentA dividend adjustment is a cash credit or debit applied to an equity or index CFD position to reflect the expected price effect of a dividend on its underlying...
→
Market analysisDovishDovish describes a central bank’s policy stance or communication as comparatively more concerned with supporting economic activity or employment and more open...
→
Risk & accountsDrawdownDrawdown is the decline in an account’s value from a previous high point to a later lower point, expressed as money or as a percentage of that prior peak. It...
→
5 terms
Orders & executionECN brokerAn ECN broker is a broker that provides access to an electronic communication network, where participating buyers and sellers can submit or match orders...
→
Market analysisEconomic calendarAn economic calendar is a schedule of upcoming economic data releases, central-bank decisions, speeches, and other planned events, typically showing the issuing...
→
Forex basicsExchange rateAn exchange rate is the price of one currency expressed in units of another currency. In a forex quote such as EUR/USD 1.0800, the exchange rate means one euro...
→
Orders & executionExecution priceExecution price is the actual price at which an order, or a portion of an order, is filled. It can differ from the price displayed when the trader submitted the...
→
Forex basicsExotic currency pairAn exotic currency pair is a market label for an FX pair that includes a less widely traded or emerging-market currency, often paired with a major currency such...
→
12 terms
Market analysisFalse breakoutA false breakout is a price move beyond an identified support, resistance, or chart-pattern boundary that quickly fails and returns inside the prior range...
→
Orders & executionFill or killFill or kill is an order instruction requiring the entire stated quantity to be executed immediately; if a full immediate execution is unavailable, the order is...
→
Regulation & safetyFinancial ombudsmanA financial ombudsman is an independent dispute-resolution body that can review eligible complaints between consumers and financial firms after the firm has had...
→
Regulation & safetyFinancial regulatorA financial regulator is a public authority, or sometimes a legally empowered supervisory body, that authorizes, supervises, makes rules for, and may enforce...
→
Forex basicsFloating exchange rateA floating exchange rate is an exchange-rate arrangement in which a currency’s value is mainly determined by supply and demand in the foreign-exchange market...
→
Forex basicsForex rolloverForex rollover is the process of carrying an open spot forex position past a broker’s daily cutoff by extending its settlement date, usually with a debit or...
→
Forex basicsForward contractA forward contract is an over-the-counter agreement between two parties to buy and sell a specified asset or financial instrument on a future date at a price...
→
Risk & accountsFree marginFree margin is the amount of account equity remaining after subtracting used margin. It is the platform’s measure of funds available to support additional...
→
Market analysisFundamental analysisFundamental analysis evaluates economic, financial, and asset-specific information to estimate value or assess forces that may affect supply, demand, income...
→
CryptoFunding rateA funding rate is the periodic percentage used to calculate payments between long and short holders of a perpetual futures contract. It is designed to encourage...
→
CFDsFutures CFDA Futures CFD is a contract for difference whose quoted price references a particular futures contract, including that contract’s delivery or settlement month...
→
Forex basicsFX forwardAn FX forward is a bilateral contract to exchange a specified amount of one currency for another on a future settlement date at a forward exchange rate fixed...
→
3 terms
CryptoGas feeA gas fee is the amount paid to process a transaction or execute operations on a blockchain that prices computation as gas. On Ethereum, the fee equals the gas...
→
Orders & executionGood till cancelledGood till cancelled is a time-in-force instruction that keeps an unfilled order active until it is executed, canceled, or reaches the broker’s or venue’s...
→
Orders & executionGuaranteed stop-lossA guaranteed stop-loss is a broker-provided stop-loss feature that contractually closes an eligible position at the selected stop level if triggered, rather...
→
4 terms
CryptoHash rateHash rate is the number of cryptographic hash calculations performed per unit of time, usually expressed as hashes per second. In proof-of-work mining, it...
→
Market analysisHawkishHawkish describes a central bank’s policy stance or communication as comparatively focused on controlling inflation, implying a greater willingness to tighten...
→
Trading stylesHedgingHedging is the use of an offsetting or partially offsetting position to reduce exposure to an unfavorable change in the value of an asset, liability, cash flow...
→
CryptoHot walletA hot wallet is a crypto wallet whose signing credentials can be accessed through a device or service connected to the internet. That connectivity makes routine...
→
4 terms
CryptoImpermanent lossImpermanent loss is the difference between the value of assets held in an automated-market-maker liquidity pool and the value those same assets would have had...
→
CFDsIndex CFDAn Index CFD is a contract for difference whose price tracks a stock-market index, such as an index of large-company shares, rather than giving the trader...
→
Market analysisInterest rateAn interest rate is the price of borrowing money or the return paid for lending or depositing it, expressed as a percentage of the principal over a stated...
→
Regulation & safetyInvestor compensation schemeAn investor compensation scheme is a statutory or industry-backed arrangement that may compensate eligible clients when a covered investment firm cannot meet...
→
1 term
1 term
12 terms
CryptoLayer 1Layer 1 is a blockchain’s primary network and settlement layer, including its own transaction history, consensus rules, and block-production process. Bitcoin...
→
CryptoLayer 2Layer 2 is a blockchain scaling system that processes transactions separately from a base blockchain, or layer 1, and connects its results back to that base...
→
Regulation & safetyLegal entityA legal entity is an organization recognized by law as able to hold property, enter contracts, incur obligations, and sue or be sued separately from the...
→
Risk & accountsLeverageLeverage is the use of a relatively small amount of account funds, called margin, to control a larger position value. It magnifies the financial effect of price...
→
Orders & executionLimit orderA limit order instructs a broker or trading platform to buy only at a stated price or lower, or sell only at a stated price or higher. It provides price control...
→
Risk & accountsLiquidationLiquidation is the closing or sale of some or all open positions or assets to convert them into cash, reduce exposure, or satisfy an obligation; in a margin...
→
Orders & executionLiquidityLiquidity is the ability to buy or sell an asset promptly in meaningful size with limited effect on its market price. It reflects available counterparties and...
→
CryptoLiquidity poolA liquidity pool is a smart-contract-controlled reserve of two or more cryptoassets available for trading, lending, or another decentralized-finance function...
→
Risk & accountsLive trading accountA live trading account is an account in which orders are submitted for actual execution and gains, losses, fees, margin requirements, and other account effects...
→
Forex basicsLondon sessionThe London session is the portion of the global forex trading day associated with business hours in London and other European financial centers. It is a...
→
Forex basicsLong positionA long position is a trade that gains value if the price of the asset or currency pair rises and loses value if it falls. In a forex pair, going long means...
→
Forex basicsLotA lot is a standardized unit used to state the size of a forex position. In retail spot forex, platforms commonly express a position as a number of lots or...
→
16 terms
Market analysisMACDMACD is a technical indicator that measures the gap between two exponential moving averages of price, commonly a faster 12-period average and a slower 26-period...
→
Forex basicsMajor currency pairA major currency pair is a commonly used market label for a highly traded FX pair that includes the U.S. dollar and another widely traded currency, such as...
→
CryptoMaker feeA maker fee is the trading fee charged when an order adds liquidity by resting in an exchange order book before another participant executes against it...
→
Risk & accountsMarginMargin is the money or eligible collateral required to open and maintain a leveraged position. In retail forex and CFDs, it is generally a security deposit...
→
Risk & accountsMargin callA margin call is a broker’s request or account-status notice that additional funds or collateral are required because account equity no longer meets the...
→
Regulation & safetyMargin close-out ruleA margin close-out rule requires a provider to close one or more leveraged positions when account funds fall to a specified margin threshold. For retail CFDs...
→
Risk & accountsMargin levelMargin level is a percentage showing account equity relative to used margin, commonly calculated as equity divided by margin multiplied by 100. Trading...
→
Orders & executionMarket depthMarket depth is the quantity of displayed buy and sell interest available at successive price levels around the current market price. Greater depth can help...
→
Orders & executionMarket makerA market maker is a firm that stands ready to buy or sell an instrument at quoted prices, typically by acting as principal and taking the other side of a trade...
→
Orders & executionMarket orderA market order instructs a broker or trading platform to buy or sell immediately at the best available price when the order reaches the market. It prioritizes...
→
Risk & accountsMaximum drawdownMaximum drawdown is the largest peak-to-trough decline in an account, fund, or trading strategy over a specified measurement period. It records the worst...
→
CryptoMaximum supplyMaximum supply is the estimated greatest number of units of a cryptocurrency that can exist over its lifetime, normally adjusted for tokens that have been...
→
Forex basicsMicro lotA micro lot is a forex trade size equal to 1,000 units of the base currency, conventionally one-hundredth of a standard lot and one-tenth of a mini lot. Its...
→
Forex basicsMini lotA mini lot is a forex trade size equal to 10,000 units of the base currency, conventionally one-tenth of a standard lot. It sets the position’s notional...
→
Forex basicsMinor currency pairA minor currency pair is a market-convention label generally applied to a pair of widely traded currencies that does not include the U.S. dollar, such as...
→
Market analysisMoving averageA moving average is a technical indicator that calculates an average of an instrument’s prices over a rolling number of periods, smoothing short-term price...
→
6 terms
Risk & accountsNegative balance protectionNegative balance protection is a policy or regulatory requirement that limits a client’s liability for trading losses to a defined amount, commonly the funds...
→
Forex basicsNew York sessionThe New York session is the portion of the global forex trading day associated with business hours in New York and North American financial markets. It is a...
→
Orders & executionNo dealing deskNo dealing desk describes a forex broker model in which client orders are presented as being routed for execution to external liquidity providers or trading...
→
CryptoNon-custodial walletA non-custodial wallet is a crypto wallet arrangement in which the user, rather than an exchange or other third party, controls the private key or signing...
→
Market analysisNonfarm payrollsNonfarm payrolls, often called NFP, are the monthly U.S. estimate of employment on nonfarm business and government payrolls, produced from the Bureau of Labor...
→
Risk & accountsNotional valueNotional value is the total face value of the underlying exposure represented by a position or contract, usually calculated by multiplying the quantity or...
→
5 terms
Market analysisOHLCOHLC stands for open, high, low, and close: the four prices used to summarize an instrument’s activity during a defined chart period. An OHLC bar displays the...
→
Orders & executionOne cancels the otherOne cancels the other is an order-linking instruction that connects two or more orders so that execution of one triggers cancellation, or sometimes holding, of...
→
Orders & executionOrder bookAn order book is an electronic record of unmatched orders to buy and sell an instrument, organized by price and typically by time priority. It shows or supports...
→
Orders & executionOver-the-counter marketAn over-the-counter market is a decentralized market in which parties trade directly with dealers or other counterparties rather than matching orders on one...
→
CFDsOvernight financingOvernight financing is a periodic charge or credit applied to an open CFD position held past the provider’s daily financing cutoff. It is generally calculated...
→
14 terms
Trading stylesPaper tradingPaper trading is the simulated placement and tracking of trades without committing real money, whether recorded manually or through a platform’s virtual...
→
Orders & executionPartial fillA partial fill occurs when only part of an order is executed because the full requested quantity is not immediately available at an acceptable price or under...
→
CryptoPerpetual futuresPerpetual futures are derivative contracts that provide long or short price exposure to an underlying asset without a preset expiration date. They use margin...
→
Forex basicsPipA pip is a conventional unit used to describe small changes in a forex exchange rate. For many currency pairs it equals 0.0001 of the quoted rate, while pairs...
→
Forex basicsPipetteA pipette is one-tenth of a standard forex pip, used when a platform quotes prices with an extra decimal place. For EUR/USD, one pipette is typically 0.00001...
→
Risk & accountsPosition sizingPosition sizing is the process of determining how large a trade to open, usually by linking the position’s potential loss at a chosen exit price to a predefined...
→
Trading stylesPosition tradingPosition trading is a longer-term trading style in which a trader holds a market position for weeks, months, or occasionally longer, seeking to benefit from a...
→
Market analysisPrice gapA price gap is an area on a chart in which no trading is recorded between one price range and the next, commonly because the next period opens materially above...
→
CryptoPrivate keyA private key is a secret cryptographic value that can authorize transactions or create digital signatures for a corresponding blockchain address or account...
→
Regulation & safetyProfessional clientA professional client is a client that meets regulatory criteria for professional treatment, meaning an investment firm may assume a greater level of investment...
→
CryptoProof of stakeProof of stake is a blockchain consensus approach in which validators lock, or stake, the network’s native cryptoasset and are selected under protocol rules to...
→
CryptoProof of workProof of work is a blockchain consensus component in which miners demonstrate that they expended computational effort to find a valid hash for a block, making...
→
CryptoPublic keyA public key is the non-secret member of an asymmetric cryptographic key pair. In blockchain systems, it can be used to verify a transaction signature made with...
→
Market analysisPullbackA pullback is a temporary price move against the direction of an existing trend, usually measured from a recent high in an uptrend or a recent low in a...
→
1 term
13 terms
Risk & accountsRealized profit and lossRealized profit and loss is the gain or loss recorded after a position, or part of a position, is closed or otherwise settled. It is based on the actual...
→
Market analysisRelative strength indexThe relative strength index, or RSI, is a bounded momentum oscillator that compares the average magnitude of recent upward price changes with recent downward...
→
Orders & executionRequoteA requote is a replacement price offered after a broker or dealer does not accept an order at the price first requested. The customer must usually accept the...
→
Forex basicsReserve currencyA reserve currency is a foreign currency that monetary authorities hold as part of official foreign-exchange reserves for liquidity, international payments...
→
Market analysisResistanceResistance is a price area above the current market price where selling interest may slow or halt an advance. It is commonly identified from prior highs, trend...
→
Regulation & safetyRetail clientA retail client is a customer classified as not being a professional client under the applicable financial-services rules, and therefore generally receives the...
→
Market analysisRetracementA retracement is a partial reversal of a prior price move, expressed as a decline after an advance or an advance after a decline, before it is known whether the...
→
Market analysisReversalA reversal is a sustained change in the direction of a market’s prevailing trend, such as an uptrend transitioning into a downtrend or a downtrend transitioning...
→
Regulation & safetyRisk disclosureA risk disclosure is a statement a broker or other financial firm gives a customer to explain material risks, costs, and limits of a product or service before...
→
Market analysisRisk-offRisk-off describes a market environment in which investors reduce exposure to assets perceived as risky and seek liquidity or relative safety, often accompanied...
→
Market analysisRisk-onRisk-on describes a market environment in which investors show greater willingness to hold assets perceived as riskier, often alongside lower risk premia and...
→
Risk & accountsRisk–reward ratioRisk–reward ratio compares a trade’s estimated loss if its risk limit is reached with its estimated profit if its target is reached. A ratio stated as 1:2...
→
CryptoRug pullA rug pull is a crypto-asset fraud or abusive scheme in which project insiders abruptly remove liquidity, sell holdings, misuse investor funds, or otherwise...
→
22 terms
Trading stylesScalpingScalping is a very short-term trading style that seeks to capture small price movements through repeated entries and exits, often within seconds or minutes. A...
→
CryptoSeed phraseA seed phrase is a sequence of words that encodes information used to generate or restore a crypto wallet’s private keys. Under common wallet standards, anyone...
→
Forex basicsSession overlapA session overlap is a period when two regional forex trading sessions are active at the same time. The best-known example is the London–New York overlap, when...
→
CFDsShare CFDA Share CFD is a contract for difference linked to the price of one company’s shares, allowing long or short exposure to price movements without transferring...
→
Forex basicsShort positionA short position is a trade that gains value if the price of the asset or currency pair falls and loses value if it rises. In a forex pair, going short means...
→
CryptoSlashingSlashing is a proof-of-stake protocol penalty that forcibly removes some or all of a validator’s staked assets when the validator commits specified serious...
→
Orders & executionSlippageSlippage is the difference between the price expected when an order is submitted and the price at which it is actually executed. It can be unfavorable or...
→
CryptoSmart contractA smart contract is code and stored data deployed at an address on a blockchain that runs according to its programmed functions when called by a transaction or...
→
Forex basicsSpot forexSpot forex is a foreign-exchange transaction in which two currencies are bought and sold at an agreed rate for settlement under the market’s standard near-term...
→
CryptoSpot marketA spot market is a market for buying or selling an asset for immediate delivery and payment at the current market price, rather than through a contract whose...
→
CFDsSpread bettingSpread betting is a derivative transaction in which profit or loss equals the movement in a quoted market multiplied by the monetary stake per point; UK...
→
CryptoStablecoinA stablecoin is a crypto asset designed to maintain a stable value relative to a specified reference asset, such as one U.S. dollar, another currency, or a...
→
CryptoStakingStaking is the act of committing crypto assets under a proof-of-stake network’s rules to help secure or operate the network, or of delegating assets to a...
→
Forex basicsStandard lotA standard lot is a commonly used retail-forex position size equal to 100,000 units of the base currency. Thus, one standard lot of EUR/USD commonly represents...
→
Orders & executionStop orderA stop order is an order that becomes active when a market reaches a specified stop price. Depending on its design, activation creates a market order or a limit...
→
Orders & executionStop-loss orderA stop-loss order is an instruction intended to close an open position if the market reaches a preselected adverse price level. A standard stop-loss normally...
→
Risk & accountsStop-out levelA stop-out level is the broker-defined threshold at which it begins automatically closing leveraged positions because account equity or margin level has fallen...
→
Orders & executionSTP brokerAn STP broker is a broker that uses straight-through processing to transmit client orders electronically through a defined workflow, commonly to one or more...
→
Regulation & safetySuitability assessmentA suitability assessment is an investment firm’s evaluation of whether a personal recommendation or portfolio-management decision fits a client’s knowledge and...
→
Market analysisSupportSupport is a price area below the current market price where buying interest may slow or halt a decline. It is commonly identified from prior lows, trend lines...
→
Forex basicsSwap rateA swap rate, in retail forex, is the broker’s stated overnight financing rate or amount used to credit or debit an open position when it is rolled to the next...
→
Trading stylesSwing tradingSwing trading is a trading style that holds positions for several days to several weeks, aiming to capture a price movement or “swing” within a broader market...
→
12 terms
Orders & executionTake-profit orderA take-profit order is an instruction to close an open position at a specified favorable price, usually through a limit order. It seeks to realize a gain if the...
→
CryptoTaker feeA taker fee is the trading fee charged when an order immediately executes against liquidity already resting in an exchange order book, thereby removing...
→
Market analysisTechnical analysisTechnical analysis examines market-generated data, principally price and sometimes volume or open interest, to describe trends, momentum, volatility, and...
→
CFDsTickA tick is the smallest permitted price movement for a quoted contract or market under its specification. In trading-platform usage, “tick” can also mean an...
→
CFDsTick sizeTick size is the numerical size of one minimum permitted price movement in an instrument’s quotation. It defines the smallest increment by which the quoted...
→
Market analysisTimeframeA timeframe is the length of activity represented by each price-chart bar, candle, or point, such as one minute, one hour, one day, or one week. It determines...
→
CryptoTokenA token is a crypto asset created, issued, or represented on a blockchain or similar distributed-ledger network, commonly through a smart contract rather than...
→
CryptoTokenomicsTokenomics is the design and analysis of a crypto token’s supply, issuance, allocation, distribution, incentives, governance rights, and uses within a network...
→
Forex basicsTrading sessionA trading session is a period during which a market center, exchange, dealer network, or trading platform is active. In forex, session labels commonly group...
→
Trading stylesTrading signalA trading signal is a prompt to consider buying, selling, closing, or adjusting a position, usually based on predefined market, technical, fundamental, or...
→
Orders & executionTrailing stopA trailing stop is a stop-loss instruction whose trigger level moves automatically with favorable price movement by a chosen distance or percentage, but does...
→
Market analysisTrendA trend is a sustained directional tendency in an instrument’s price over a chosen timeframe. An uptrend is commonly described by successive higher highs and...
→
3 terms
CFDsUnderlying assetAn underlying asset is the financial instrument, market, index, commodity, currency pair, or other reference on which a CFD’s price and value are based. The CFD...
→
Risk & accountsUnrealized profit and lossUnrealized profit and loss is the current gain or loss on an open position, calculated from its entry price and the price used to value it now, but not yet...
→
Risk & accountsUsed marginUsed margin is the portion of account funds currently allocated to satisfy margin requirements for open positions and, depending on platform rules, pending...
→
2 terms
CryptoValidatorA validator is a network participant or protocol-defined entity that helps a proof-of-stake blockchain reach consensus by checking proposed blocks, submitting...
→
Orders & executionVolatilityVolatility is the degree and speed of price variation over a specified period. Higher volatility means prices have tended to move more widely or less...
→
1 term