Trading Terms Glossary: The Most Comprehensive Trading Terms Glossary on the Web. Quantitative easing (or QE, for short) is an economic monetary policy intended to lower interest rates and increase money supply. The asset will usually be sold in a different market, different form or with a different financial product, depending on how the discrepancy in the price occurs. Find out more, A - B - C - D - E - F - G - H - I - L - M - N - O - P - Q - R - S - T - U - V - W - Y. A company’s liabilities are the debts and obligations represented on its balance sheet. OBV is mostly used in shares trading, because the volume has an especially large influence on the way share prices move. The contract represents an asset to one party (the buyer) and a financial liability to the other party (the seller). It can refer to a single project or the entire business. The website is owned by Financika (Sharp Trading) Ltd.

A digital option is a type of option that offers the opportunity of a fixed payout if the underlying market price exceeds a pre-determined limit, called the strike price. 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. It is one of the three major oil benchmarks used in trading, the others being Brent crude and Dubai/Oman. 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. Downtrend – Stocks are in a downtrend when they’re making lower highs and lower lows. You will have a rate of return on any investment you make. Support – A price level at which buyers repeatedly overwhelm sellers, making it difficult for the stock to drop lower in price. Equity options are a form of derivative used exclusively to trade shares as the underlying asset. Tom-next is short for ‘tomorrow-next day’, which is the process of rolling a FX position from one spot day to the next. For instance, the foreign exchange quote for U.S. Dollar and Japanese Yen (JPY) will look like this: The first currency is the base currency and the second is the quote currency.

Entry is given for stock after the resistance breakout.

A working order is a general term for either a stop or limit order to open. When two or more companies decide to combine and become one entity, it is called a merger. The term is sometimes used interchangeably with ‘retracement’ or ‘consolidation’. Copyright © Ltd All rights resderved. The most successful investors know stock trading terms like the back of their hand, while those who don’t can have no … CPI stands for consumer price index, an average of several consumer goods and services that are used to give an indication of inflation. Arbitrage in trading is the practice of simultaneously buying and selling an asset to take advantage of a difference in price.

An exchange is an open, organised marketplace for commodities, stocks, securities, derivatives and other financial instruments. A commodity is a basic physical asset, often used as a raw material in the production of goods or services.

They can be compared to previous closing prices, or the opening price to measure an asset’s movement over a single day. Sunday trading is a service that enables you to speculate on several markets over the weekend.

At the money (ATM) is a term used to describe an options contract with a strike price that is identical to the underlying market price. Customers who want to use their accounts for day trading must obtain the broker-dealer's prior approval. Day Trading Can Be Extremely Risky.

They are also often referred to simply as ‘futures’. Share buyback, or share repurchase, is when a company buys back its own shares from investors. If you were to sell the quoted currency, you would receive 1.5034 U.S. dollars per 1 Euro. Forex traders often talk about one currency ‘strengthening’ in relation to another, meaning that it would cost more to buy, or that it can buy more of another currency when sold.

A covered call is a call option trading strategy. Market capitalisation is the total market value of a company’s shares on the market. Earnings per share (EPS) is an important metric in a company’s earnings figures. In financial trading, the term asset relates to what is being exchanged on markets, such as stocks, bonds, currencies or commodities. In finance, interest can have more than one definition.

This can come in the form of overnight funding charges, interest payments on margin accounts and forex transactions, or the costs of storing any commodities on the delivery of a futures contract. All information regarding the likelihood of potential future investment outcomes are hypothetical. Their opinions or experiences may not be representative of the opinions or experiences of other traders. Multilateral trading facilities (MTFs) offer traders and investment firms an alternative to traditional exchanges. It is often abbreviated to market cap. From beginners getting acquainted with the world of investing to experts with decades of experience, all traders need to learn – or review – the meanings behind a huge number of terms on an almost daily basis. A stock can be in an uptrend or downtrend. The trend can be either upwards or downwards. This could mean that variable costs either increase or decrease depending on a company’s current output. The group of Financika consists of Cubbon Services Limited a European entity duly registered in Arch. If your position moves favourably but then reverses, a trailing stop can lock in your profits and close the position.

It is also referred to as a helicopter drop, in reference to a helicopter scattering supplies from the sky. Amortisation will often incur interest payments, set at the discretion of the lender.