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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 - 

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SMT Capital Limited provides educational services and products only - no investment advice or services are offered. All investment services are through third parties (Darwinex and eToro), which are FCA regulated. 

 

SMT Capital is not registered or regulated by the FCA and does not need to. All client funds are kept with the FCA regulated brokers and are segregated as per FCA standards. SMT Capital does not handle client funds and does not trade on behalf of clients. All services are offered through copy trading systems offered by FCA regulated brokers. 

*There is a very high degree of risk involved in trading. Past results are not indicative of future returns. SMT Capital Limited and all individuals affiliated with this site assume no responsibilities for your trading and investment results. The indicators, strategies, columns, articles and all other features are for educational purposes only and should not be construed as investment advice. Information for Forex trading observations are obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. Your use of the trading observations is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness of the information. You must assess the risk of any trade with your broker and make your own independent decisions regarding any securities mentioned herein. Affiliates of SMT Capital Limited may have a position or effect transactions in the securities described herein (or options thereon) and/or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies. Trading Forex, Options on Forex, and any retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time. SMT Capital Limited is not an investment advisory service, is not an investment adviser, and does not provide personalised financial advice or act as a financial adviser. 

*All trading products and services are non-refundable.  It is hardly fair to process refunds just because you change your mind after receiving materials and the education. We do not offer refunds for digital products, there are NO refunds on any digital products offered on this site. Past results are not a reflection of future gains.  

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