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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 - 

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