A

Trading terms glossary A - B - C - D - E - F - G - H - I - J - K - L - M - N - O - P - Q - R - S - T - U - V - W - X - Y - Z - A Acquisition (mergers and acquisitions) When one company purchases or 'takes over' either the majority or the entirety of the ownership stake of another company. American Depositary Receipt (ADR) The ADR rep...

September 16, 2021
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B

Trading terms glossary A - B - C - D - E - F - G - H - I - J - K - L - M - N - O - P - Q - R - S - T - U - V - W - X - Y - Z - B Backwardation This is a state when the price of a futures contract is trading lower than the expected spot price. Learn more about backwardation Base rate The interest rate a central bank will charge fo...

September 16, 2021
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C

Trading terms glossary A - B - C - D - E - F - G - H - I - J - K - L - M - N - O - P - Q - R - S - T - U - V - W - X - Y - Z - C Cable Cable in forex is the nickname of the GBP/USD currency pair, which is one of the most popular currency pairs on the market.  Calendar Spread A calendar spread is a trading technique, which involves b...

September 16, 2021
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D

Trading terms glossary A - B - C - D - E - F - G - H - I - J - K - L - M - N - O - P - Q - R - S - T - U - V - W - X - Y - Z - D Dark pools Dark pools is a privately organized financial forum or exchange for trading securities. They allow institutional investors to trade without exposure until after the trade has been executed and report...

September 16, 2021
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E

Trading terms glossary A - B - C - D - E - F - G - H - I - J - K - L - M - N - O - P - Q - R - S - T - U - V - W - X - Y - Z - E Earnings per share Earnings per share (EPS) is the net profit of a company, divided by the number of outstanding shares. A tool commonly used to measure a company's profitability.  EBITDA EBITDA (earnings ...

September 16, 2021
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F

Trading terms glossary A - B - C - D - E - F - G - H - I - J - K - L - M - N - O - P - Q - R - S - T - U - V - W - X - Y - Z - F Face Value Face value represents the amount that must be paid out at a bond or stock's maturity. It may also mean the dollar value of a security, set by the issuer.  Fair value Fair value is the present va...

September 16, 2021
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G

Trading terms glossary A - B - C - D - E - F - G - H - I - J - K - L - M - N - O - P - Q - R - S - T - U - V - W - X - Y - Z - G Gapping Learn more about Gapping. GDP Also known as Gross Domestic Product (GDP), it is the total value of goods and services manufactured in a country over a period of time. It can also be used as the si...

September 16, 2021
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H

Trading terms glossary A - B - C - D - E - F - G - H - I - J - K - L - M - N - O - P - Q - R - S - T - U - V - W - X - Y - Z - H Handle In trading, the term ‘handle’ has two meanings, depending on which market you are referring to. In most markets, handle is the the part of a price quote that exists to the left of the decimal point i...

September 16, 2021
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I

Trading terms glossary A - B - C - D - E - F - G - H - I - J - K - L - M - N - O - P - Q - R - S - T - U - V - W - X - Y - Z - I Iceberg order An Iceberg order divides large orders into smaller segments. They are often used by traders for the purpose of hiding the full order quantity in order to minimise market disruption.  Ichimoku ...

September 16, 2021
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J

Trading terms glossary A - B - C - D - E - F - G - H - I - J - K - L - M - N - O - P - Q - R - S - T - U - V - W - X - Y - Z - J...

September 16, 2021
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K

Trading terms glossary A - B - C - D - E - F - G - H - I - J - K - L - M - N - O - P - Q - R - S - T - U - V - W - X - Y - Z - Kiwi "The Kiwi" is a slang name for New Zealand's Dollar. Key currency Key currencies are stable currencies that don't vary too much, which can be globally used to set exchange rates and support international tr...

September 16, 2021
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L

Trading terms glossary A - B - C - D - E - F - G - H - I - J - K - L - M - N - O - P - Q - R - S - T - U - V - W - X - Y - Z - L Leverage Leverage lets traders multiply their investment without the need to invest additional capital. e.g. If a broker offers 20:1 leverage, with an investment of $1,000 a trader could open a position of $20,...

September 16, 2021
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M

Trading terms glossary A - B - C - D - E - F - G - H - I - J - K - L - M - N - O - P - Q - R - S - T - U - V - W - X - Y - Z - M Macro-based A trading strategy driven by macroeconomic factors. Maintenance margin Also known as the "variation margin", the maintenance margin is the amount of funds that must be available to keep a marg...

September 16, 2021
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N

Trading terms glossary A - B - C - D - E - F - G - H - I - J - K - L - M - N - O - P - Q - R - S - T - U - V - W - X - Y - Z - N Net change Net change refers to the difference between the closing price of the current trading session and the closing price of the previous trading session. This can be positive or negative, and simply repres...

September 16, 2021
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O

Trading terms glossary A - B - C - D - E - F - G - H - I - J - K - L - M - N - O - P - Q - R - S - T - U - V - W - X - Y - Z - O OCO (one cancels the other) OCO allows many orders to be placed at once. Whichever order is filled first will cancel the other automatically. OCO can be used to close an existing position or take advantage of m...

September 16, 2021
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