
TRADING & INVESTING DICTIONARY.
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 -