TRADING & INVESTING DICTIONARY.
Trading, Investing & Financial Market Terms Explained
Algorithmic Trading (Algo) -
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Ask -
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Assets -
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Bank of America - an American investment bank - not the central bank of the United States, which is the Federal Reserve
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Bank of Canada (BOC) - the central bank of Canada
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Bank of England (BOE) - the central bank of the United Kingdom
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Bank of Japan (BOJ) - the central bank of Japan
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Bid -
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Bearish - meaning that prices are falling/an asset is depreciating/price is down-trending
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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
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Bullish - meaning that prices are rising/an asset is appreciating/price is up-trending
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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
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Central Bank -
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CPI -
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Currency Trading - trading on the foreign exchange market or a derivative of the market. Currency trading is also called Forex trading and FX trading
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Depreciate -
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Dividend - share (pay out) of profits to shareholders. Dividends are usually received once a year for holding shares in profitable companies
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Downtrend - see bearish
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Earnings -
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Economics - the process of making choices about how to use scarce resources
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Equity -
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Equities -
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Equity Markets - the stock markets
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European Central Bank (ECB) - the central bank of the Euro Area
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Federal Reserve (The FED) - the central bank of the United States of America
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Fiscal Policy -
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Forex / Foreign Exchange -
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Fundamental Analysis -
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GDP -
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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 -
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Hedge Fund -
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High Frequency Trading -
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Indicators -
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Inflation -
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Interest Rates -
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Japanese Candlesticks -
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Leverage -
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Liabilities -
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Lot -
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Lot Size -
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Macro Economics -
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Margin -
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Margin call -
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Micro Economics -
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Micro Lot - see lot
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Mini Lot - see lot
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Monetary Policy -
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Moving Averages -
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Non Farm Payrolls (NFP) -
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Position Sizing -
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PPI -
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Price Action -
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Price Action Analysis - see price action. The method of studying price action to determine where future price may be.
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Proprietary Trading Fund -
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Retail Sales -
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Retail Trading -
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Revenue - cash received or owed, usually through sales, commissions or royalties
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Scare Resources - any resource that has a limit i.e. It is not renewable or unlimited, such as oil, corn and cash
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Slippage -
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Spread -
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Stop Loss -
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Swap Rate -
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Swiss National Bank (SNB) - the central bank of Switzerland
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Range - when price is moving within two price areas of a market
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Reserve Bank of Australia (RBA) - the central bank of Australia
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Reserve Bank of New Zealand (RBNZ) - the central bank of New Zealand
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Take Profit -
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Technical Analysis -
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Technical Indicators -
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Trade Off - generally means that having one thing requires us to relinquish another
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Trend - the direction price has been moving i.e. Up-trending or down-trending
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Uptrend - see bullish
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Volatility -