Glossary

MOST VALUABLE TRADING DEFINITIONS

Fintradix has prepared top terms often encountered by both beginners and experienced investors so that each Client can refresh their knowledge and understand the ongoing processes in simple and accessible language. Use the alphabetical navigation for a quick search.

  • 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

The yearly rate of return of an investment, expressed as a percentage, taking into account the compounding effect over time. It allows comparisons of returns over different timeframes.

Resources owned or controlled by an individual or entity, with economic value and the potential to generate income or provide benefits.

The price a seller is willing to accept for a security, also referred to as the "offer price."

An individual or organization authorized by the client to act on their behalf in trading or managing financial transactions.

B

The total funds in a trading account, including deposits and realized profits, but excluding floating (unrealized) profits and losses.

The price a buyer is willing to pay for a security.

A fixed-income instrument that represents a loan made by an investor to a borrower, typically used by corporations or governments to raise capital.

C

A financial contract that gives the buyer the right, but not the obligation, to buy a specific asset at a predetermined price within a set timeframe.

A derivative instrument that allows traders to speculate on the price movements of an asset without owning the underlying asset.

An account maintained by a trader with a broker or financial institution, used for trading and holding assets.

The software or application interface used by a trader to place orders and manage their trading account.

A transaction that involves both the opening and closing of a position, realizing a profit or loss.

Funds or purchasing power extended by a broker or lender to a client, often used in margin trading.

The quotation of two different currencies, where the value of one currency is expressed relative to the other.

D

The practice of buying and selling financial instruments within the same trading day, with no positions held overnight.

A financial contract whose value is derived from the performance of an underlying asset, such as stocks, commodities, or currencies.

The strategy of spreading investments across various assets to reduce overall risk.

E

The price level at which a trader enters a market by opening a position.

The value of an investor's account, calculated as account balance plus floating profits and minus floating losses.

F

Unrealized gains or losses on open positions based on current market prices.

Unforeseen events beyond human control, such as natural disasters or political unrest, that impact markets or trading conditions.

The funds available in a trading account to open new positions, calculated as equity minus the margin used for open positions.

An investment method that evaluates financial, economic, and qualitative factors to determine the intrinsic value of an asset.

The total capital available in a trading account.

G

The rate of change in an option’s delta for a one-point change in the price of the underlying asset.

A significant price difference between two trading sessions, often due to news or market events.

H

The margin required to maintain offsetting positions in the same asset.

A price level where selling pressure prevents further upward movement of an asset.

I

Information used to verify the identity of a client, such as name, address, and legal documentation.

The amount of funds required to open a leveraged position.

A tradable asset, such as stocks, currencies, commodities, or derivatives.

J

A small or insignificant trade made to tidy up a portfolio or adjust its balance.

A graphical representation showing an initial decline followed by a sharp increase, often used in economics and investment analysis.

K

An option contract that becomes active only if the underlying asset reaches a specified price.

A compliance process to verify the identity and financial background of clients.

L

The use of borrowed capital to increase the potential return of an investment.

The ease with which an asset can be bought or sold without significantly affecting its price.

A situation where opposing buy and sell positions exist in the same asset for the same amount.

A position that benefits from a price increase in the underlying asset.

A standardized trading unit or quantity of an asset.

M

A broker’s demand for additional funds or securities to maintain a trading position.

Trading with borrowed funds, allowing traders to control larger positions with less capital.

The rate at which the price of an asset moves over time, indicating its strength or weakness.

A technical indicator that smooths price data over a set period to identify trends.

N

An unhedged position without an offsetting trade.

The minimum amount of funds required to open or maintain a trading position.

O

The total number of outstanding contracts in a derivatives market.

An active trade that has not yet been closed or settled.

A trading day during which financial markets are open for business.

Financial derivatives that provide the right, but not the obligation, to buy or sell an asset at a specified price.

An instruction to execute a trade at a specified price or under certain conditions.

P

The smallest price movement in a currency pair.

A collection of financial assets held by an individual or institution.

Determining the appropriate size of a trade based on risk management and account size.

Q

The use of mathematical models and statistical methods to analyse financial markets and securities.

The most recent bid and ask prices for a security.

R

The price of one currency or financial instrument relative to another.

A request sent to a broker or dealer for the current bid and ask prices of an asset.

The process of extending the settlement date of an open position in the market.

S

A financial instrument that represents stocks, bonds, or derivatives.

The platform or system that processes trading transactions and stores data.

Selling a borrowed asset with the expectation of buying it back at a lower price.

A position that profits from a decline in the price of an asset.

An overnight interest payment or charge for holding a position open.

T

An order to close a position at a predefined profit level.

The study of price charts and patterns to predict future market movements.

A mathematical calculation based on price and volume data, used to forecast market trends.

The smallest possible price movement of a financial instrument.

The software used to execute trades and analyse market data.

The general direction of an asset's price over time.

U

The asset upon which a derivative contract is based.

Shares of companies providing essential services, such as electricity and water.

V

A measure of the rate and magnitude of price changes in a market or asset.

The total number of shares, contracts, or units traded during a specific period.

W

A day when financial markets are open for trading.

An order that is active but not yet executed.

X

The date on which a stock begins trading without the value of its next dividend payment.

Y

The period beginning from the start of the calendar year to the current date.

The income return on an investment, expressed as a percentage of its cost or market value.

Z

A bond sold at a discount that does not pay periodic interest but pays the full face value at maturity.

A statistical measurement of a value's relationship to the mean of a group of values, expressed in standard deviations.