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Trading, Investing & Financial Market Terms Explained

Algorithmic Trading (Algo) - 

Ask - 

Assets - 

Bank of America - an American investment bank - not the central bank of the United States, which is the Federal Reserve

Bank of Canada (BOC) - the central bank of Canada

Bank of England (BOE) - the central bank of the United Kingdom

Bank of Japan (BOJ) - the central bank of Japan

Bid - 

Bearish - meaning that prices are falling/an asset is depreciating/price is down-trending

Broker - a company that provides access to financial markets for a fee. Traders and investors need to use a broker in order to trade financial markets

Bullish - meaning that prices are rising/an asset is appreciating/price is up-trending

Carry Trade - the payment received or paid for holding a position/trade overnight. Equity carry trading usually refers to the dividend pay out. Forex carry trading usually refers to the interest received or paid for holding particular currency pairs

Central Bank - 

CPI - 

Currency Trading - trading on the foreign exchange market or a derivative of the market. Currency trading is also called Forex trading and FX trading

Depreciate - 

Dividend - share (pay out) of profits to shareholders. Dividends are usually received once a year for holding shares in profitable companies

Downtrend - see bearish

Earnings - 

Economics - the process of making choices about how to use scarce resources

Equity - 

Equities - 

Equity Markets - the stock markets

European Central Bank (ECB) - the central bank of the Euro Area

Federal Reserve (The FED) - the central bank of the United States of America

Fiscal Policy - 

Forex / Foreign Exchange - 

Fundamental Analysis - 

GDP - 

Geopolitics - politics influenced by geographical factors, including - but not limited to - international trade and trade agreements, immigration, diplomacy, war treaties, territorial agreements, climate agreements and international law


Hedge -  

Hedge Fund - 

High Frequency Trading - 

Indicators - 

Inflation - 

Interest Rates - 

Japanese Candlesticks - 

Leverage - 

Liabilities - 

Lot - 

Lot Size - 

Macro Economics - 

Margin - 

Margin call - 

Micro Economics - 

Micro Lot - see lot

Mini Lot - see lot

Monetary Policy - 

Moving Averages - 

Non Farm Payrolls (NFP) - 

Position Sizing - 

PPI - 

Price Action - 

Price Action Analysis - see price action. The method of studying price action to determine where future price may be. 

Proprietary Trading Fund - 

Retail Sales - 

Retail Trading - 

Revenue - cash received or owed, usually through sales, commissions or royalties

Scare Resources - any resource that has a limit i.e. It is not renewable or unlimited, such as oil, corn and cash

Slippage - 

Spread - 

Stop Loss - 

Swap Rate - 

Swiss National Bank (SNB) - the central bank of Switzerland

Range - when price is moving within two price areas of a market

Reserve Bank of Australia (RBA) - the central bank of Australia

Reserve Bank of New Zealand (RBNZ) - the central bank of New Zealand 

Take Profit - 

Technical Analysis - 

Technical Indicators - 

Trade Off - generally means that having one thing requires us to relinquish another

Trend - the direction price has been moving i.e. Up-trending or down-trending 

Uptrend - see bullish

Volatility - 

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