Skip to main content
300+ terms defined Expert reviewed Updated regularly

Forex & Trading Glossary

From pip and spread to DeFi, Smart Money Concepts, and central bank policy — every definition includes real-world context so you can apply it immediately.

Find the best broker for you

300+

Terms defined

24

Letters covered

7

Topic categories

Plain

English explanations

A(12)

ADX

TA

The Average Directional Index (ADX) is a technical analysis indicator used to quantify the strength of a trend, whether…

AML

Regulation

AML, or Anti-Money Laundering, refers to the set of laws, regulations, and procedures intended to prevent criminals from…

AMM

Crypto

Automated Market Maker (AMM) refers to a type of decentralised exchange protocol that relies on a mathematical formula t…

ASIC

Regulation

ASIC stands for the Australian Securities and Investments Commission, the financial regulatory body in Australia respons…

ATR

TA

The Average True Range (ATR) is a technical analysis indicator that measures market volatility by decomposing the entire…

Airdrop

Crypto

An airdrop in the context of finance and trading refers to the distribution of a cryptocurrency token or coin, usually f…

Algorithmic Trading

Forex

Algorithmic trading refers to the use of computer programs and algorithms to execute trades in the financial markets. Th…

Alpha

Forex

Alpha is a financial metric used to measure an investment's performance relative to a market index or benchmark. It repr…

Altcoin

Crypto

An altcoin is any cryptocurrency other than Bitcoin. Derived from "alternative" and "coin," altcoins provide alternative…

Analysis Paralysis

Risk

Analysis Paralysis refers to a state of overthinking a situation to the point where no decision or action is taken. This…

Arbitrage

Forex

Arbitrage is a financial strategy that involves the simultaneous purchase and sale of an asset in different markets to e…

Ask Price

Forex

The Ask Price is the minimum price a seller is willing to accept for a security or asset in the financial markets. This…

B(19)

Backtesting

Risk

Backtesting is a method used in finance and trading to evaluate the viability of a trading strategy by applying it to hi…

Balance of Payments

Fundamental

The Balance of Payments (BoP) is a comprehensive financial statement that summarises a country's transactions with the r…

Base Currency

Forex

The term base currency refers to the first currency listed in a currency pair in forex trading. It serves as the referen…

Bear Market

Forex

A bear market refers to a prolonged period of declining asset prices, typically characterised by a fall of 20% or more f…

Bear Trap

TA

A Bear Trap is a market scenario that tricks traders into believing that a downward trend in a stock or market index is…

Beta

Forex

Beta is a financial metric that measures the volatility of an asset or portfolio in relation to the overall market, ofte…

Bid Price

Forex

The bid price is the highest price a buyer is willing to pay for a financial asset, such as a stock, bond, or commodity,…

Bitcoin Dominance

Crypto

Bitcoin Dominance refers to the ratio of Bitcoin's market capitalisation compared to the total market capitalisation of…

Bitcoin ETF

Crypto

A Bitcoin Exchange Traded Fund (ETF) is a financial product that tracks the price of Bitcoin, allowing investors to gain…

Bitcoin Halving

Crypto

A Bitcoin halving is a predefined event that reduces the reward miners receive for validating transactions by 50%, occur…

Black Swan

Fundamental

A "Black Swan" refers to an unpredictable event with significant impact, often beyond the realm of normal expectations.…

Blockchain

Crypto

Blockchain is a decentralised digital ledger technology that records transactions across multiple computers in a way tha…

Blue Chip

Forex

A "Blue Chip" stock refers to shares of a well-established company with a history of reliable performance, stability, an…

Bollinger Bands

TA

Bollinger Bands are a technical analysis tool used in financial markets to measure market volatility and identify potent…

Breakout

Forex

A breakout in trading refers to a price movement through a predefined level of support or resistance, often accompanied…

Breakout Trading

TA

Breakout trading is a strategy used in financial markets where traders seek to enter a position when the price of an ass…

Broker Regulation

Forex

Broker Regulation refers to the legal framework and guidelines that oversee the operations of brokerage firms, ensuring…

Bull Market

Forex

A Bull Market refers to a financial market condition where prices are rising or are expected to rise. Typically associat…

Bull Trap

TA

A bull trap is a false market signal indicating that a declining trend in a stock or other asset has reversed and is hea…

C(25)

CCI

TA

The Commodity Channel Index (CCI) is a versatile technical analysis indicator used to identify cyclical trends in the fi…

CEX

Crypto

A Centralised Exchange (CEX) is a platform where financial assets, such as cryptocurrencies, are traded. These exchanges…

CFTC

Regulation

The Commodity Futures Trading Commission (CFTC) is an independent agency of the United States government established to…

COT Report

Fundamental

The Commitment of Traders (COT) Report is a weekly publication by the Commodity Futures Trading Commission (CFTC) in the…

CPI

Fundamental

The Consumer Price Index (CPI) is a vital economic indicator that measures the average change in prices paid by consumer…

Candlestick Pattern

TA

A candlestick pattern is a method used in technical analysis to visually represent price movements in financial markets…

Carry Trade

Forex

The term Carry Trade refers to a trading strategy that involves borrowing funds in a currency with a low interest rate a…

Cent Account

Brokers

A Cent Account is a type of trading account offered by some brokers that allows traders to operate in cents rather than…

Central Bank

Forex

A central bank is a national financial institution responsible for overseeing monetary policy, regulating banks, issuing…

Cold Wallet

Crypto

A cold wallet is a type of cryptocurrency storage method that keeps digital assets offline, thereby reducing exposure to…

Commodities

Forex

Commodities are basic goods used in commerce that are interchangeable with other goods of the same type. They are often…

Commodity Currency

Forex

A commodity currency refers to a national currency that is heavily influenced by the export prices of certain commoditie…

Compounding

Risk

Compounding refers to the process where the value of an investment increases because the earnings on an asset, both capi…

Confirmation Bias

Risk

Confirmation Bias is a cognitive bias that leads individuals to favour information that confirms their pre-existing beli…

Confluence

TA

Confluence in trading refers to the alignment of multiple technical indicators, chart patterns, or price levels that col…

Consolidation

TA

Consolidation refers to a period in trading where an asset's price remains within a well-defined range, displaying littl…

Copy Trading

Brokers

Copy Trading is a form of trading that allows individuals to replicate the trading strategies of experienced traders. Th…

Correlation

Forex

Correlation is a statistical measure that indicates the extent to which two or more variables move in relation to each o…

Currency Correlation

Forex

Currency Correlation refers to the statistical measure of how two currency pairs move in relation to each other. Correla…

Currency Intervention

Forex

Currency intervention, also known as foreign exchange intervention, is a monetary policy tool employed by central banks…

Currency Pair

Forex

A currency pair is a quotation of two different currencies, with the value of one currency being quoted against the othe…

Currency Peg

Forex

A currency peg is a policy by which a country maintains its currency's exchange rate at a fixed level against another cu…

Current Account

Fundamental

The term Current Account refers to a crucial component of a country's balance of payments, representing all transactions…

CySEC

Regulation

The Cyprus Securities and Exchange Commission (CySEC) is the financial regulatory authority of Cyprus. Established in 20…

cTrader

Brokers

cTrader is a sophisticated trading platform designed for Forex and CFD trading, offering advanced charting tools, a rang…

D(21)

DAO

Crypto

A Decentralised Autonomous Organisation (DAO) is a blockchain-based entity governed by smart contracts and community con…

DEX

Crypto

A Decentralised Exchange (DEX) is a type of cryptocurrency exchange that operates without a central authority or interme…

DMA Broker

Forex

A DMA (Direct Market Access) broker enables traders to place orders directly on the exchange's order book. This type of…

DXY

Forex

The DXY, or U.S. Dollar Index, is a financial instrument that measures the value of the United States dollar relative to…

DYOR

Crypto

DYOR stands for "Do Your Own Research." It is a crucial principle in the trading and investment community, encouraging i…

Dark Pool

Forex

A dark pool is a private financial forum or exchange for trading securities, primarily equities, that allows investors t…

Day Trading

Forex

Day Trading refers to the buying and selling of financial instruments within a single trading day. Traders aim to profit…

DeFi

Crypto

DeFi, short for decentralised finance, refers to a financial ecosystem built on blockchain technology that aims to repli…

Dead Cat Bounce

TA

A "Dead Cat Bounce" is a temporary recovery in the price of a declining security or market, followed by a continuation o…

Dealing Desk

Forex

A Dealing Desk is a type of brokerage model where the broker acts as an intermediary between traders and the market. Als…

Deflation

Fundamental

Deflation is the economic phenomenon characterised by a persistent decrease in the general price level of goods and serv…

Demo Account

Forex

A demo account is a simulated trading platform provided by brokers that allows users to practise trading without risking…

Derivatives

Forex

Derivatives are financial instruments whose value is derived from the price of an underlying asset, such as stocks, bond…

Divergence

TA

Divergence is a term used in technical analysis to describe a situation where the price of an asset is moving in the opp…

Dividend

Forex

A dividend is a distribution of a portion of a company's earnings to its shareholders, typically paid out in cash or add…

Doji

TA

A Doji is a type of candlestick pattern used in technical analysis of financial markets, indicating indecision among tra…

Dollar Cost Averaging

Crypto

Dollar Cost Averaging (DCA) is an investment strategy where a fixed amount of money is invested at regular intervals int…

Donchian Channel

TA

The Donchian Channel is a technical analysis tool used in trading to identify potential breakouts and trend reversals. I…

Double Top

TA

A Double Top is a bearish technical analysis pattern that signals a potential reversal in the price movement of an asset…

Dovish

Fundamental

The term "dovish" is used in finance to describe a monetary policy stance that favours lower interest rates and other me…

Drawdown

Risk

A drawdown refers to the reduction in equity from a peak to a trough in the value of an investment portfolio. It is expr…

E(11)

ECN Broker

Brokers

An ECN Broker, or Electronic Communication Network Broker, is a type of financial intermediary that facilitates direct t…

EPS

Forex

Earnings Per Share (EPS) is a financial metric that indicates the profitability of a company by measuring the amount of…

ESMA

Regulation

ESMA, the European Securities and Markets Authority, is an independent European Union (EU) authority that contributes to…

ETF

Forex

An Exchange-Traded Fund (ETF) is a type of investment fund traded on stock exchanges, much like stocks. ETFs hold assets…

Economic Calendar

Fundamental

An Economic Calendar is a tool used by traders and investors to track key economic events that could impact financial ma…

Elliott Wave Theory

Forex

The Elliott Wave Theory is a form of technical analysis used to predict financial market trends by identifying recurring…

Engulfing Pattern

TA

An Engulfing Pattern is a candlestick chart pattern used in technical analysis to signal a potential reversal in market…

Equity

Forex

Equity in the context of finance refers to the ownership value held by shareholders in a company, represented by their s…

Execution Speed

Brokers

Execution speed refers to the time it takes for a broker to complete a trade order once it has been placed by a trader.…

Exotic Pair

Forex

In the world of forex trading, an Exotic Pair refers to a currency pair consisting of one major currency and a currency…

Expected Value

Risk

Expected Value is a statistical concept used to determine the average outcome of a financial decision based on all possi…

F(19)

FCA

Regulation

The Financial Conduct Authority (FCA) is the regulatory body responsible for overseeing financial markets and firms in t…

FOMC

Fundamental

The Federal Open Market Committee (FOMC) is a branch of the Federal Reserve System responsible for overseeing the United…

FOMO

Forex

FOMO, or "Fear of Missing Out," is a psychological phenomenon often observed in trading and investing. It refers to the…

FSA

Regulation

The Financial Services Authority (FSA) was the regulator of the financial services industry in the United Kingdom. Estab…

FUD

Forex

FUD stands for "Fear, Uncertainty, and Doubt." It is a strategy used in finance and trading to influence perception by d…

Fair Value Gap

TA

A Fair Value Gap refers to the price difference between the perceived fair market value of an asset and its actual marke…

Fear and Greed Index

Crypto

The Fear and Greed Index is a tool used to gauge investor sentiment in the stock market. Developed by CNNMoney, it measu…

Fibonacci Retracement

TA

The Fibonacci Retracement is a technical analysis tool used by traders to identify potential support and resistance leve…

Fiscal Policy

Fundamental

Fiscal Policy refers to the use of government spending and taxation to influence the economy. It is a critical tool used…

Flag Pattern

TA

A flag pattern is a technical analysis tool used in financial markets to identify potential continuation of a current tr…

Flash Crash

Forex

A "Flash Crash" refers to a rapid and severe drop in security prices within a short period, often followed by a swift re…

Floating Exchange Rate

Forex

A floating exchange rate is a currency valuation system where the currency's value is determined by market forces, such…

Forward Guidance

Fundamental

Forward guidance is a monetary policy tool used by central banks to communicate anticipated future changes in interest r…

Forward Testing

Risk

Forward testing is the process of evaluating a trading strategy using live market conditions, after a strategy has been…

Free Cash Flow

Forex

Free Cash Flow (FCF) is a financial metric that measures the cash a company generates after accounting for capital expen…

Free Margin

Forex

Free Margin refers to the amount of equity in a trading account that is available to open new positions or maintain exis…

Fundamental Analysis

Forex

Fundamental Analysis is a method used by investors and traders to evaluate the intrinsic value of a security by examinin…

Funding Rate

Crypto

The Funding Rate is a periodic payment made between traders in a futures market, typically used in cryptocurrency exchan…

Futures

Forex

Futures are financial contracts obligating the buyer to purchase, or the seller to sell, a specific quantity of an asset…

G(6)

H(13)

HODL

Crypto

HODL is a term originating from the cryptocurrency community, signifying a long-term investment strategy where investors…

Hammer

TA

A "Hammer" is a candlestick pattern in technical analysis that indicates a potential reversal from a downtrend to an upt…

Hard Fork

Crypto

A hard fork is a significant and backward-incompatible change to a blockchain protocol, resulting in a permanent diverge…

Harmonic Patterns

TA

Harmonic patterns are advanced technical analysis tools that traders use to predict potential price movements in financi…

Hash Rate

Forex

The term hash rate refers to the computational power utilised in verifying and processing transactions on a blockchain n…

Hawkish

Fundamental

The term "hawkish" refers to a monetary policy stance that favours higher interest rates to curb inflation. Policymakers…

Head and Shoulders

TA

The "Head and Shoulders" pattern is a technical analysis chart formation that signifies a potential reversal in a market…

Hedge Fund

Forex

A hedge fund is a pooled investment vehicle that employs diverse strategies to generate high returns for its investors.…

Hedging

Forex

Hedging is a financial strategy used to reduce or eliminate the risk of adverse price movements in an asset. It involves…

Heikin Ashi

TA

Heikin Ashi is a type of candlestick chart used in technical analysis to filter out market noise and identify trends mor…

High-Frequency Trading

Forex

High-Frequency Trading (HFT) is a type of algorithmic trading characterised by extremely high speeds and very short-term…

Hot Wallet

Crypto

A hot wallet is a digital tool that stores cryptocurrencies and remains connected to the internet. It allows users to se…

Hyperinflation

Fundamental

Hyperinflation refers to an extremely rapid and out-of-control rate of inflation, where prices increase at an exorbitant…

I(14)

IPO

Forex

An Initial Public Offering (IPO) is the process by which a privately held company offers its shares to the public for th…

Ichimoku Cloud

TA

The Ichimoku Cloud, also known as Ichimoku Kinko Hyo, is a comprehensive technical analysis indicator that provides insi…

Impermanent Loss

Forex

Impermanent Loss refers to the temporary loss of funds experienced by liquidity providers in automated market makers (AM…

Implied Volatility

Forex

Implied Volatility (IV) refers to the market's forecast of a likely movement in a security's price and is often used to…

Index Fund

Forex

An Index Fund is a type of mutual fund or exchange-traded fund (ETF) designed to replicate the performance of a specific…

Inflation

Fundamental

Inflation is the rate at which the general level of prices for goods and services rises, leading to a decrease in purcha…

Inside Bar

TA

An Inside Bar is a candlestick pattern on a price chart where the current bar is completely contained within the high an…

Interbank Market

Forex

The interbank market is a global network where banks trade currencies and other financial instruments directly with one…

Interest Rate

Fundamental

Interest Rate refers to the proportion of a loan charged as interest to the borrower, typically expressed as an annual p…

Interest Rate Differential

Forex

The term Interest Rate Differential (IRD) refers to the difference in interest rates between two distinct currencies in…

Intermarket Analysis

Fundamental

Intermarket Analysis is a method of analysing the financial markets by examining the relationships between different ass…

Introducing Broker

Brokers

An Introducing Broker (IB) is an individual or company that refers clients to a brokerage firm and earns a commission or…

Inverted Yield Curve

Fundamental

An Inverted Yield Curve occurs when short-term interest rates surpass long-term rates, resulting in a downward slope in…

Islamic Account

Brokers

An Islamic Account is a type of trading account designed to comply with Sharia law, which prohibits earning interest (Ri…

J(1)

K(2)

L(11)

Layer 1

Crypto

Layer 1 refers to the foundational level of a blockchain architecture. It is the underlying infrastructure upon which va…

Layer 2

Crypto

Layer 2 refers to secondary frameworks or protocols that are built on top of an existing blockchain, primarily to enhanc…

Leverage

Forex

Leverage in trading refers to the use of borrowed funds to increase the potential return of an investment. It allows tra…

Limit Order

Forex

A limit order is a type of trading order used to buy or sell a security at a specified price or better. It ensures that…

Liquidation

Crypto

Liquidation in finance refers to the process of converting assets into cash, typically to settle debts or close down a b…

Liquidity

Forex

Liquidity refers to the ability of an asset to be quickly bought or sold in the market without causing a significant cha…

Liquidity Pool

Forex

In finance, a liquidity pool is a collection of funds locked in a smart contract on a decentralised exchange platform. T…

Liquidity Provider

Brokers

A Liquidity Provider is a financial institution or individual that supplies liquidity to the market by offering buy and…

Loss Aversion

Risk

Loss aversion is a behavioural finance concept describing investors' tendency to prefer avoiding losses rather than acqu…

Lot

Forex

A "Lot" in trading and finance refers to a standardised quantity of an asset that is bought or sold in a single transact…

Lot Size

Forex

A "Lot Size" in trading refers to the number of units of a financial instrument that a trader buys or sells in a single…

M(28)

MACD

TA

The Moving Average Convergence Divergence (MACD) is a popular technical analysis tool used in trading to identify change…

MAM Account

Brokers

A Multi-Account Manager (MAM) account is a sophisticated trading platform feature enabling professional traders to manag…

MAS

Regulation

The term "MAS" refers to the Monetary Authority of Singapore, the country’s central bank and financial regulatory author…

Major Pair

Forex

A "Major Pair" in the context of foreign exchange (forex) trading refers to a currency pair that involves the US dollar…

Margin

Forex

Margin refers to the funds an investor must deposit with a broker to cover potential losses in leveraged trading positio…

Margin Call

Forex

A Margin Call occurs when the value of an investor's margin account falls below the broker's required minimum. This typi…

Market Capitalisation

Forex

Market Capitalisation, often referred to as "market cap", is a measure of a company's total value as determined by the s…

Market Depth

Forex

Market Depth refers to the market's ability to sustain relatively large market orders without impacting the price of the…

Market Maker

Forex

A market maker is a financial intermediary that provides liquidity to financial markets by being ready to buy and sell s…

Market Order

Forex

A market order is a type of trading order used to buy or sell a security immediately at the current market price. This i…

Market Sentiment

Fundamental

Market Sentiment refers to the overall attitude or feeling of investors towards a particular financial market or asset.…

Market Session

Forex

A "Market Session" refers to a specific period during which a financial market is open for trading. It involves defined…

Market Structure

TA

Market structure refers to the organisation and characteristics of a financial market that determine the interactions be…

Maximum Drawdown

Risk

Maximum Drawdown refers to the largest peak-to-trough decline in the value of an investment portfolio, trading account,…

Mean Reversion

Forex

Mean Reversion is a financial theory suggesting that asset prices and historical returns eventually revert to their long…

Meme Coin

Crypto

A "Meme Coin" is a type of cryptocurrency that gains popularity and value primarily through social media influence and o…

MetaTrader 4

Forex

MetaTrader 4 (MT4) is a widely used electronic trading platform developed by MetaQuotes Software, primarily for forex tr…

MetaTrader 5

Forex

MetaTrader 5 (MT5) is an advanced multi-asset trading platform developed by MetaQuotes Software, offering comprehensive…

MiFID II

Regulation

MiFID II, or the Markets in Financial Instruments Directive II, is a comprehensive piece of legislation created by the E…

Micro Lot

Forex

A Micro Lot is a unit of measurement in forex trading that represents 1,000 units of the base currency in a currency pai…

Minor Pair

Forex

In the foreign exchange market, a "Minor Pair" refers to a currency pair that does not involve the United States Dollar…

Momentum

Forex

Momentum in finance refers to the tendency of an asset's price to continue moving in its current direction. This concept…

Money Management

Risk

Money Management refers to the strategic process of budgeting, saving, investing, spending, or otherwise overseeing the…

Money Supply

Fundamental

The term Money Supply refers to the total amount of monetary assets available in an economy at a specific time. It inclu…

Morning Star

TA

The "Morning Star" is a bullish candlestick pattern used in technical analysis to signal a potential reversal from a dow…

Moving Average

Forex

A moving average is a widely used statistical indicator in trading and finance that smooths out price data by creating a…

Multiple Timeframe Analysis

TA

Multiple Timeframe Analysis (MTA) is a trading strategy that involves examining the same asset across different timefram…

Mutual Fund

Forex

A mutual fund is an investment vehicle that pools money from multiple investors to purchase a diversified portfolio of s…

N(5)

O(9)

P(24)

P/B Ratio

Forex

The Price-to-Book (P/B) Ratio is a financial metric used to compare a company's current market price to its book value.…

P/E Ratio

Forex

The Price-to-Earnings (P/E) Ratio is a financial metric used to evaluate the relative value of a company's shares. It is…

PAMM Account

Brokers

A Percentage Allocation Management Module (PAMM) account is a type of investment account that allows traders to allocate…

PMI

Forex

The Purchasing Managers' Index (PMI) is a vital economic indicator that reflects the prevailing direction of economic tr…

PPI

Fundamental

PPI, or Producer Price Index, is a financial metric that measures the average change over time in the selling prices rec…

Parabolic SAR

TA

The Parabolic SAR (Stop and Reverse) is a technical analysis tool used to determine the direction of an asset's momentum…

Pending Order

Forex

A Pending Order in trading refers to an instruction given to a broker to buy or sell a financial instrument at a predete…

Perpetual Contract

Crypto

A perpetual contract is a type of financial derivative that allows traders to speculate on the price of an underlying as…

Pin Bar

TA

A Pin Bar is a candlestick pattern used in technical analysis to indicate potential reversals in market price trends. Ch…

Pip

Forex

A "pip" is a standardised unit of measurement in forex trading that denotes the smallest price movement an exchange rate…

Pip Value

Forex

The term Pip Value refers to the monetary worth of a one-pip movement in a forex trade. It is a crucial metric for trade…

Pivot Points

TA

Pivot Points are a technical analysis indicator used by traders to determine potential support and resistance levels in…

Portfolio Diversification

Forex

Portfolio Diversification refers to the investment strategy of spreading investments across various financial instrument…

Position Sizing

Forex

Position Sizing refers to the process of determining the appropriate amount of capital to allocate to a particular trade…

Position Trading

Forex

Position Trading is a long-term investment strategy where traders hold positions in financial instruments such as stocks…

Price Action

Forex

Price Action refers to the movement of a security's price plotted over time. It serves as the foundation for all technic…

Price Gap

Forex

A Price Gap refers to a discontinuity on a financial instrument's price chart where the asset's price moves sharply up o…

Prime Broker

Forex

A Prime Broker is a specialised financial institution or a division within a larger financial entity that provides a sui…

Profit Factor

Risk

The Profit Factor is a key performance metric used in trading to evaluate the efficiency of a trading strategy. It is ca…

Proof of Stake

Crypto

Proof of Stake (PoS) is a consensus mechanism used in blockchain networks to validate transactions and create new blocks…

Proof of Work

Crypto

Proof of Work (PoW) is a consensus mechanism used in blockchain networks to validate transactions and secure the network…

Prop Firm

Forex

A "Prop Firm," or Proprietary Trading Firm, is a financial institution that deploys its own capital to trade financial i…

Pump and Dump

Crypto

A "Pump and Dump" is a fraudulent scheme that involves artificially inflating the price of a stock through misleading, e…

Purchasing Power Parity

Forex

Purchasing Power Parity (PPP) is an economic theory that compares different countries' currencies through a "basket of g…

Q(3)

R(16)

R-Multiple

Risk

The term R-Multiple refers to a metric used in trading and finance to assess the potential risk-reward ratio of a trade.…

ROE

Forex

Return on Equity (ROE) is a financial metric that measures a company's profitability relative to shareholders' equity. I…

RSI

TA

The Relative Strength Index (RSI) is a momentum oscillator used in technical analysis to measure the speed and change of…

Realised P&L

Forex

Realised P&L refers to the profit or loss that a trader has actually incurred from closed positions within a given p…

Recession

Fundamental

A recession is a significant decline in economic activity across the economy that lasts for an extended period, typicall…

Requote

Brokers

A requote occurs in financial trading when a broker offers a different price for a trade than originally quoted due to m…

Reserve Currency

Forex

A reserve currency is a foreign currency held in significant quantities by governments and institutions as part of their…

Retail Sales

Fundamental

Retail Sales is a key economic indicator that measures the total receipts of retail stores from the sale of goods and se…

Retracement

TA

A retracement in trading and finance refers to a temporary reversal in the direction of a financial asset's price, inter…

Revenge Trading

Risk

Revenge trading is a behavioural pattern in financial markets where a trader attempts to recover losses by making impuls…

Risk Management

Forex

Risk Management refers to the identification, assessment, and prioritisation of risks followed by coordinated efforts to…

Risk-On / Risk-Off

Fundamental

The term Risk-On/Risk-Off refers to investment behaviours that reflect investors' risk tolerance in response to market c…

Risk/Reward Ratio

Forex

The Risk/Reward Ratio is a financial metric used by traders and investors to assess the potential profit of a trade rela…

Rollover

Forex

Rollover is a financial term used primarily in the context of foreign exchange (forex) trading to describe the process o…

Rollover / Swap

Forex

A "Rollover" or "Swap" in trading refers to the process of extending the settlement date of an open position in the fore…

Rug Pull

Crypto

A "Rug Pull" is a type of scam prevalent in the cryptocurrency and decentralised finance (DeFi) markets, where developer…

S(31)

STP Broker

Brokers

An STP (Straight Through Processing) broker is a type of financial intermediary that processes transactions electronical…

Safe Haven

Fundamental

A "Safe Haven" refers to an investment that is expected to retain or increase in value during times of market turbulence…

Scalping

Forex

Scalping is a trading strategy that involves making numerous trades over short time frames, typically seconds to minutes…

Sector Rotation

Forex

Sector Rotation is an investment strategy that involves moving investments from one industry sector to another in antici…

Seed Phrase

Crypto

A seed phrase, also known as a recovery phrase or mnemonic phrase, is a sequence of words generated by a cryptocurrency…

Segregated Funds

Forex

Segregated funds refer to a financial arrangement where a broker or financial institution keeps client funds in separate…

Sentiment Analysis

Forex

Sentiment Analysis refers to the method of using data analytics to gauge public opinion or emotion towards a particular…

Share Buyback

Forex

A share buyback, also known as a share repurchase, is a corporate action where a company buys back its own shares from t…

Sharpe Ratio

Risk

The Sharpe Ratio is a financial metric used to evaluate the risk-adjusted return of an investment or portfolio. It measu…

Short Selling

Forex

Short selling is a trading strategy that involves selling a security that the trader does not currently own, with the in…

Slippage

Forex

Slippage refers to the difference between the expected price of a trade and the actual price at which the trade is execu…

Smart Contract

Forex

A smart contract is a self-executing contract with the terms of the agreement directly written into lines of code. These…

Smart Money Concepts

TA

Smart Money Concepts refer to a trading strategy that focuses on monitoring and emulating the trading actions of institu…

Social Trading

Forex

Social Trading is an innovative investment practice that involves the sharing of trading strategies and insights among a…

Sortino Ratio

Risk

The Sortino Ratio is a financial metric used to evaluate the risk-adjusted return of an investment portfolio, focusing s…

Spot Market

Forex

The spot market is a financial marketplace where financial instruments such as commodities, currencies, and securities a…

Spread

Forex

The term spread in trading and finance refers to the difference between the bid price and the ask price of a security or…

Spread Betting

Brokers

Spread betting is a type of derivative trading that allows investors to speculate on the price movements of financial ma…

Stablecoin

Crypto

A stablecoin is a type of cryptocurrency designed to maintain a stable value by being pegged to a reserve asset, such as…

Stagflation

Fundamental

Stagflation refers to an economic condition characterised by the simultaneous occurrence of stagnant economic growth, hi…

Staking

Crypto

Staking refers to the process of actively participating in the validation of transactions on a blockchain network by hol…

Stochastic Oscillator

TA

The Stochastic Oscillator is a momentum indicator used in technical analysis to compare a particular closing price of an…

Stock Market Index

Forex

A Stock Market Index is a statistical measure that reflects the composite value of a selected group of stocks. It provid…

Stock Split

Forex

A stock split is a corporate action where a company divides its existing shares into multiple new shares to boost the st…

Stop Out Level

Forex

The "Stop Out Level" is a predetermined point set by a broker at which a trader's open positions are automatically close…

Stop-Limit Order

Forex

A stop-limit order is a conditional trade order used in the trading of securities, combining the features of a stop orde…

Stop-Loss Order

Risk

A stop-loss order is a directive given by an investor to a broker to sell a security when it reaches a predetermined pri…

Supply and Demand Zones

TA

Supply and demand zones are critical areas on a financial chart where the price action demonstrates a strong supply or d…

Support and Resistance

Forex

Support and Resistance are fundamental concepts in technical analysis used by traders to identify potential price levels…

Swap

Forex

A swap is a financial derivative contract where two parties exchange cash flows or liabilities from two different financ…

Swing Trading

Forex

Swing Trading is a short to medium-term trading strategy that involves holding financial instruments for a period rangin…

T(13)

TVL

Crypto

Total Value Locked (TVL) is a metric used to assess the overall value of assets deposited in a decentralised finance (De…

Take-Profit Order

Forex

A take-profit order is a type of trading instruction given to a broker to automatically sell a security once it reaches…

Technical Analysis

Forex

Technical Analysis refers to the method of evaluating and forecasting the future price movements of financial assets bas…

Tier 1 Regulator

Regulation

A Tier 1 regulator is a top-level financial regulatory authority that oversees financial markets and institutions within…

Tokenomics

Crypto

Tokenomics, a portmanteau of "token" and "economics," refers to the economic framework and incentivisation mechanisms un…

Trade Balance

Fundamental

The trade balance is a measure of the difference in value between a country's exports and imports over a specified perio…

Trading Journal

Risk

A Trading Journal is a detailed record maintained by traders to document all aspects of their trading activity. The prim…

Trading Plan

Risk

A trading plan is a systematic approach designed to guide traders in their buying and selling decisions within the finan…

Trailing Stop

Forex

A Trailing Stop is a dynamic stop-loss order that adjusts itself as the price of a security moves in a favourable direct…

Treasury Bonds

Fundamental

Treasury bonds are long-term debt securities issued by a government to support government spending. Typically considered…

Trend Following

Forex

Trend Following is an investment strategy that aims to capitalise on the momentum of market trends by buying assets when…

Trend Line

TA

A trend line is a straight line drawn on a chart to indicate the direction of a market trend. This technical analysis to…

Triangle Pattern

TA

A Triangle Pattern is a technical analysis chart pattern used in trading and finance to predict the future direction of…

U(1)

V(7)

W(7)

Y(2)

Find a broker

Ready to start trading?

Now that you know the terminology, compare top-rated brokers on fees, platforms, regulation and more — all in one place.

Compare Best Forex Brokers

Glossary definitions are for educational purposes only — not personalised financial advice. Trading involves significant risk of loss. Full risk disclosure.

Frequently Asked Questions

What is a pip in forex?

A pip (percentage in point) is the smallest standard price movement in a currency pair. For most pairs it equals 0.0001 — so a move from 1.1050 to 1.1051 is one pip. For JPY pairs it equals 0.01. On a standard lot (100,000 units) one pip is worth approximately $10.

What is leverage in trading?

Leverage lets traders control a position much larger than their deposited capital. With 100:1 leverage, $1,000 controls a $100,000 position — amplifying both profits and losses proportionally. High leverage increases risk significantly and should be used with strict stop-losses.

What is the difference between technical and fundamental analysis?

Technical analysis studies price charts, patterns, and indicators to forecast future price movements based on historical data. Fundamental analysis evaluates economic releases, central bank policy, and financial metrics to determine intrinsic value. Most professional traders combine both approaches.

What is a spread in forex?

The spread is the difference between the bid price (what buyers pay) and the ask price (what sellers receive). It represents the broker's transaction cost and is measured in pips. ECN brokers offer raw interbank spreads plus commission; market makers build their fee into a wider spread.

What is a stop-loss order?

A stop-loss is an instruction to automatically close a position when price reaches a specified level, capping the maximum loss on a trade. It is the primary risk management tool in trading — placing a stop-loss before entering any position is considered non-negotiable by professional traders.

What is DeFi?

DeFi (Decentralised Finance) refers to financial services built on blockchain networks that operate without banks or brokers. Smart contracts automate lending, borrowing, trading, and yield generation. Major DeFi protocols include Uniswap (trading), Aave (lending), and Lido (staking).

Trading Guides

In-depth guides for beginners and pros

Trading Calculators

25 free tools for pip, margin, position sizing

Compare Brokers

Side-by-side broker comparisons

Find My Broker Quiz

Get matched in 2 minutes