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.
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Terms defined
24
Letters covered
7
Topic categories
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English explanations
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Dealing Desk
ForexA Dealing Desk is a type of brokerage model where the broker acts as an intermediary between traders and the market. Als…
DMA Broker
ForexA DMA (Direct Market Access) broker enables traders to place orders directly on the exchange's order book. This type of…
Market Maker
ForexA market maker is a financial intermediary that provides liquidity to financial markets by being ready to buy and sell s…
ECN Broker
BrokersAn ECN Broker, or Electronic Communication Network Broker, is a type of financial intermediary that facilitates direct t…
STP Broker
BrokersAn STP (Straight Through Processing) broker is a type of financial intermediary that processes transactions electronical…
Yield Farming
CryptoYield Farming refers to the practice of staking or lending crypto assets within decentralised finance (DeFi) platforms t…
Essential Terms
Pip
ForexA "pip" is a standardised unit of measurement in forex trading that denotes the smallest price movement an exchange rate…
Leverage
ForexLeverage in trading refers to the use of borrowed funds to increase the potential return of an investment. It allows tra…
Margin
ForexMargin refers to the funds an investor must deposit with a broker to cover potential losses in leveraged trading positio…
Stop-Loss Order
RiskA stop-loss order is a directive given by an investor to a broker to sell a security when it reaches a predetermined pri…
RSI
TAThe Relative Strength Index (RSI) is a momentum oscillator used in technical analysis to measure the speed and change of…
MACD
TAThe Moving Average Convergence Divergence (MACD) is a popular technical analysis tool used in trading to identify change…
Fibonacci Retracement
TAThe Fibonacci Retracement is a technical analysis tool used by traders to identify potential support and resistance leve…
Bollinger Bands
TABollinger Bands are a technical analysis tool used in financial markets to measure market volatility and identify potent…
Candlestick Pattern
TAA candlestick pattern is a method used in technical analysis to visually represent price movements in financial markets…
A(12)
ADX
TAThe Average Directional Index (ADX) is a technical analysis indicator used to quantify the strength of a trend, whether…
AML
RegulationAML, or Anti-Money Laundering, refers to the set of laws, regulations, and procedures intended to prevent criminals from…
AMM
CryptoAutomated Market Maker (AMM) refers to a type of decentralised exchange protocol that relies on a mathematical formula t…
ASIC
RegulationASIC stands for the Australian Securities and Investments Commission, the financial regulatory body in Australia respons…
ATR
TAThe Average True Range (ATR) is a technical analysis indicator that measures market volatility by decomposing the entire…
Airdrop
CryptoAn airdrop in the context of finance and trading refers to the distribution of a cryptocurrency token or coin, usually f…
Algorithmic Trading
ForexAlgorithmic trading refers to the use of computer programs and algorithms to execute trades in the financial markets. Th…
Alpha
ForexAlpha is a financial metric used to measure an investment's performance relative to a market index or benchmark. It repr…
Altcoin
CryptoAn altcoin is any cryptocurrency other than Bitcoin. Derived from "alternative" and "coin," altcoins provide alternative…
Analysis Paralysis
RiskAnalysis Paralysis refers to a state of overthinking a situation to the point where no decision or action is taken. This…
Arbitrage
ForexArbitrage is a financial strategy that involves the simultaneous purchase and sale of an asset in different markets to e…
Ask Price
ForexThe 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
RiskBacktesting is a method used in finance and trading to evaluate the viability of a trading strategy by applying it to hi…
Balance of Payments
FundamentalThe Balance of Payments (BoP) is a comprehensive financial statement that summarises a country's transactions with the r…
Base Currency
ForexThe term base currency refers to the first currency listed in a currency pair in forex trading. It serves as the referen…
Bear Market
ForexA bear market refers to a prolonged period of declining asset prices, typically characterised by a fall of 20% or more f…
Bear Trap
TAA Bear Trap is a market scenario that tricks traders into believing that a downward trend in a stock or market index is…
Beta
ForexBeta is a financial metric that measures the volatility of an asset or portfolio in relation to the overall market, ofte…
Bid Price
ForexThe 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
CryptoBitcoin Dominance refers to the ratio of Bitcoin's market capitalisation compared to the total market capitalisation of…
Bitcoin ETF
CryptoA Bitcoin Exchange Traded Fund (ETF) is a financial product that tracks the price of Bitcoin, allowing investors to gain…
Bitcoin Halving
CryptoA Bitcoin halving is a predefined event that reduces the reward miners receive for validating transactions by 50%, occur…
Black Swan
FundamentalA "Black Swan" refers to an unpredictable event with significant impact, often beyond the realm of normal expectations.…
Blockchain
CryptoBlockchain is a decentralised digital ledger technology that records transactions across multiple computers in a way tha…
Blue Chip
ForexA "Blue Chip" stock refers to shares of a well-established company with a history of reliable performance, stability, an…
Bollinger Bands
TABollinger Bands are a technical analysis tool used in financial markets to measure market volatility and identify potent…
Breakout
ForexA breakout in trading refers to a price movement through a predefined level of support or resistance, often accompanied…
Breakout Trading
TABreakout trading is a strategy used in financial markets where traders seek to enter a position when the price of an ass…
Broker Regulation
ForexBroker Regulation refers to the legal framework and guidelines that oversee the operations of brokerage firms, ensuring…
Bull Market
ForexA Bull Market refers to a financial market condition where prices are rising or are expected to rise. Typically associat…
Bull Trap
TAA 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
TAThe Commodity Channel Index (CCI) is a versatile technical analysis indicator used to identify cyclical trends in the fi…
CEX
CryptoA Centralised Exchange (CEX) is a platform where financial assets, such as cryptocurrencies, are traded. These exchanges…
CFTC
RegulationThe Commodity Futures Trading Commission (CFTC) is an independent agency of the United States government established to…
COT Report
FundamentalThe Commitment of Traders (COT) Report is a weekly publication by the Commodity Futures Trading Commission (CFTC) in the…
CPI
FundamentalThe Consumer Price Index (CPI) is a vital economic indicator that measures the average change in prices paid by consumer…
Candlestick Pattern
TAA candlestick pattern is a method used in technical analysis to visually represent price movements in financial markets…
Carry Trade
ForexThe term Carry Trade refers to a trading strategy that involves borrowing funds in a currency with a low interest rate a…
Cent Account
BrokersA Cent Account is a type of trading account offered by some brokers that allows traders to operate in cents rather than…
Central Bank
ForexA central bank is a national financial institution responsible for overseeing monetary policy, regulating banks, issuing…
Cold Wallet
CryptoA cold wallet is a type of cryptocurrency storage method that keeps digital assets offline, thereby reducing exposure to…
Commodities
ForexCommodities are basic goods used in commerce that are interchangeable with other goods of the same type. They are often…
Commodity Currency
ForexA commodity currency refers to a national currency that is heavily influenced by the export prices of certain commoditie…
Compounding
RiskCompounding refers to the process where the value of an investment increases because the earnings on an asset, both capi…
Confirmation Bias
RiskConfirmation Bias is a cognitive bias that leads individuals to favour information that confirms their pre-existing beli…
Confluence
TAConfluence in trading refers to the alignment of multiple technical indicators, chart patterns, or price levels that col…
Consolidation
TAConsolidation refers to a period in trading where an asset's price remains within a well-defined range, displaying littl…
Copy Trading
BrokersCopy Trading is a form of trading that allows individuals to replicate the trading strategies of experienced traders. Th…
Correlation
ForexCorrelation is a statistical measure that indicates the extent to which two or more variables move in relation to each o…
Currency Correlation
ForexCurrency Correlation refers to the statistical measure of how two currency pairs move in relation to each other. Correla…
Currency Intervention
ForexCurrency intervention, also known as foreign exchange intervention, is a monetary policy tool employed by central banks…
Currency Pair
ForexA currency pair is a quotation of two different currencies, with the value of one currency being quoted against the othe…
Currency Peg
ForexA currency peg is a policy by which a country maintains its currency's exchange rate at a fixed level against another cu…
Current Account
FundamentalThe term Current Account refers to a crucial component of a country's balance of payments, representing all transactions…
CySEC
RegulationThe Cyprus Securities and Exchange Commission (CySEC) is the financial regulatory authority of Cyprus. Established in 20…
cTrader
BrokerscTrader is a sophisticated trading platform designed for Forex and CFD trading, offering advanced charting tools, a rang…
D(21)
DAO
CryptoA Decentralised Autonomous Organisation (DAO) is a blockchain-based entity governed by smart contracts and community con…
DEX
CryptoA Decentralised Exchange (DEX) is a type of cryptocurrency exchange that operates without a central authority or interme…
DMA Broker
ForexA DMA (Direct Market Access) broker enables traders to place orders directly on the exchange's order book. This type of…
DXY
ForexThe DXY, or U.S. Dollar Index, is a financial instrument that measures the value of the United States dollar relative to…
DYOR
CryptoDYOR stands for "Do Your Own Research." It is a crucial principle in the trading and investment community, encouraging i…
Dark Pool
ForexA dark pool is a private financial forum or exchange for trading securities, primarily equities, that allows investors t…
Day Trading
ForexDay Trading refers to the buying and selling of financial instruments within a single trading day. Traders aim to profit…
DeFi
CryptoDeFi, short for decentralised finance, refers to a financial ecosystem built on blockchain technology that aims to repli…
Dead Cat Bounce
TAA "Dead Cat Bounce" is a temporary recovery in the price of a declining security or market, followed by a continuation o…
Dealing Desk
ForexA Dealing Desk is a type of brokerage model where the broker acts as an intermediary between traders and the market. Als…
Deflation
FundamentalDeflation is the economic phenomenon characterised by a persistent decrease in the general price level of goods and serv…
Demo Account
ForexA demo account is a simulated trading platform provided by brokers that allows users to practise trading without risking…
Derivatives
ForexDerivatives are financial instruments whose value is derived from the price of an underlying asset, such as stocks, bond…
Divergence
TADivergence is a term used in technical analysis to describe a situation where the price of an asset is moving in the opp…
Dividend
ForexA dividend is a distribution of a portion of a company's earnings to its shareholders, typically paid out in cash or add…
Doji
TAA Doji is a type of candlestick pattern used in technical analysis of financial markets, indicating indecision among tra…
Dollar Cost Averaging
CryptoDollar Cost Averaging (DCA) is an investment strategy where a fixed amount of money is invested at regular intervals int…
Donchian Channel
TAThe Donchian Channel is a technical analysis tool used in trading to identify potential breakouts and trend reversals. I…
Double Top
TAA Double Top is a bearish technical analysis pattern that signals a potential reversal in the price movement of an asset…
Dovish
FundamentalThe term "dovish" is used in finance to describe a monetary policy stance that favours lower interest rates and other me…
Drawdown
RiskA 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
BrokersAn ECN Broker, or Electronic Communication Network Broker, is a type of financial intermediary that facilitates direct t…
EPS
ForexEarnings Per Share (EPS) is a financial metric that indicates the profitability of a company by measuring the amount of…
ESMA
RegulationESMA, the European Securities and Markets Authority, is an independent European Union (EU) authority that contributes to…
ETF
ForexAn Exchange-Traded Fund (ETF) is a type of investment fund traded on stock exchanges, much like stocks. ETFs hold assets…
Economic Calendar
FundamentalAn Economic Calendar is a tool used by traders and investors to track key economic events that could impact financial ma…
Elliott Wave Theory
ForexThe Elliott Wave Theory is a form of technical analysis used to predict financial market trends by identifying recurring…
Engulfing Pattern
TAAn Engulfing Pattern is a candlestick chart pattern used in technical analysis to signal a potential reversal in market…
Equity
ForexEquity in the context of finance refers to the ownership value held by shareholders in a company, represented by their s…
Execution Speed
BrokersExecution 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
ForexIn the world of forex trading, an Exotic Pair refers to a currency pair consisting of one major currency and a currency…
Expected Value
RiskExpected Value is a statistical concept used to determine the average outcome of a financial decision based on all possi…
F(19)
FCA
RegulationThe Financial Conduct Authority (FCA) is the regulatory body responsible for overseeing financial markets and firms in t…
FOMC
FundamentalThe Federal Open Market Committee (FOMC) is a branch of the Federal Reserve System responsible for overseeing the United…
FOMO
ForexFOMO, or "Fear of Missing Out," is a psychological phenomenon often observed in trading and investing. It refers to the…
FSA
RegulationThe Financial Services Authority (FSA) was the regulator of the financial services industry in the United Kingdom. Estab…
FUD
ForexFUD stands for "Fear, Uncertainty, and Doubt." It is a strategy used in finance and trading to influence perception by d…
Fair Value Gap
TAA 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
CryptoThe Fear and Greed Index is a tool used to gauge investor sentiment in the stock market. Developed by CNNMoney, it measu…
Fibonacci Retracement
TAThe Fibonacci Retracement is a technical analysis tool used by traders to identify potential support and resistance leve…
Fiscal Policy
FundamentalFiscal Policy refers to the use of government spending and taxation to influence the economy. It is a critical tool used…
Flag Pattern
TAA flag pattern is a technical analysis tool used in financial markets to identify potential continuation of a current tr…
Flash Crash
ForexA "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
ForexA floating exchange rate is a currency valuation system where the currency's value is determined by market forces, such…
Forward Guidance
FundamentalForward guidance is a monetary policy tool used by central banks to communicate anticipated future changes in interest r…
Forward Testing
RiskForward testing is the process of evaluating a trading strategy using live market conditions, after a strategy has been…
Free Cash Flow
ForexFree Cash Flow (FCF) is a financial metric that measures the cash a company generates after accounting for capital expen…
Free Margin
ForexFree Margin refers to the amount of equity in a trading account that is available to open new positions or maintain exis…
Fundamental Analysis
ForexFundamental Analysis is a method used by investors and traders to evaluate the intrinsic value of a security by examinin…
Funding Rate
CryptoThe Funding Rate is a periodic payment made between traders in a futures market, typically used in cryptocurrency exchan…
Futures
ForexFutures are financial contracts obligating the buyer to purchase, or the seller to sell, a specific quantity of an asset…
G(6)
GDP
FundamentalGross Domestic Product (GDP) is a comprehensive measure representing the total monetary value of all goods and services…
Gas Fee
CryptoA "Gas Fee" is a charge incurred when executing transactions on a blockchain network, particularly those involving smart…
Going Long
ForexGoing long refers to the practice of buying a financial instrument with the expectation that its price will rise over ti…
Going Short
ForexGoing Short is a trading strategy where an investor sells a financial instrument, such as a stock, with the intention of…
Golden Cross
TAThe "Golden Cross" is a bullish technical analysis pattern that occurs when a short-term moving average crosses above a…
Good Till Cancelled
ForexA "Good Till Cancelled" (GTC) order is a type of trading instruction used in financial markets that remains active until…
H(13)
HODL
CryptoHODL is a term originating from the cryptocurrency community, signifying a long-term investment strategy where investors…
Hammer
TAA "Hammer" is a candlestick pattern in technical analysis that indicates a potential reversal from a downtrend to an upt…
Hard Fork
CryptoA hard fork is a significant and backward-incompatible change to a blockchain protocol, resulting in a permanent diverge…
Harmonic Patterns
TAHarmonic patterns are advanced technical analysis tools that traders use to predict potential price movements in financi…
Hash Rate
ForexThe term hash rate refers to the computational power utilised in verifying and processing transactions on a blockchain n…
Hawkish
FundamentalThe term "hawkish" refers to a monetary policy stance that favours higher interest rates to curb inflation. Policymakers…
Head and Shoulders
TAThe "Head and Shoulders" pattern is a technical analysis chart formation that signifies a potential reversal in a market…
Hedge Fund
ForexA hedge fund is a pooled investment vehicle that employs diverse strategies to generate high returns for its investors.…
Hedging
ForexHedging is a financial strategy used to reduce or eliminate the risk of adverse price movements in an asset. It involves…
Heikin Ashi
TAHeikin Ashi is a type of candlestick chart used in technical analysis to filter out market noise and identify trends mor…
High-Frequency Trading
ForexHigh-Frequency Trading (HFT) is a type of algorithmic trading characterised by extremely high speeds and very short-term…
Hot Wallet
CryptoA hot wallet is a digital tool that stores cryptocurrencies and remains connected to the internet. It allows users to se…
Hyperinflation
FundamentalHyperinflation refers to an extremely rapid and out-of-control rate of inflation, where prices increase at an exorbitant…
I(14)
IPO
ForexAn Initial Public Offering (IPO) is the process by which a privately held company offers its shares to the public for th…
Ichimoku Cloud
TAThe Ichimoku Cloud, also known as Ichimoku Kinko Hyo, is a comprehensive technical analysis indicator that provides insi…
Impermanent Loss
ForexImpermanent Loss refers to the temporary loss of funds experienced by liquidity providers in automated market makers (AM…
Implied Volatility
ForexImplied Volatility (IV) refers to the market's forecast of a likely movement in a security's price and is often used to…
Index Fund
ForexAn Index Fund is a type of mutual fund or exchange-traded fund (ETF) designed to replicate the performance of a specific…
Inflation
FundamentalInflation is the rate at which the general level of prices for goods and services rises, leading to a decrease in purcha…
Inside Bar
TAAn Inside Bar is a candlestick pattern on a price chart where the current bar is completely contained within the high an…
Interbank Market
ForexThe interbank market is a global network where banks trade currencies and other financial instruments directly with one…
Interest Rate
FundamentalInterest Rate refers to the proportion of a loan charged as interest to the borrower, typically expressed as an annual p…
Interest Rate Differential
ForexThe term Interest Rate Differential (IRD) refers to the difference in interest rates between two distinct currencies in…
Intermarket Analysis
FundamentalIntermarket Analysis is a method of analysing the financial markets by examining the relationships between different ass…
Introducing Broker
BrokersAn Introducing Broker (IB) is an individual or company that refers clients to a brokerage firm and earns a commission or…
Inverted Yield Curve
FundamentalAn Inverted Yield Curve occurs when short-term interest rates surpass long-term rates, resulting in a downward slope in…
Islamic Account
BrokersAn 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
CryptoLayer 1 refers to the foundational level of a blockchain architecture. It is the underlying infrastructure upon which va…
Layer 2
CryptoLayer 2 refers to secondary frameworks or protocols that are built on top of an existing blockchain, primarily to enhanc…
Leverage
ForexLeverage in trading refers to the use of borrowed funds to increase the potential return of an investment. It allows tra…
Limit Order
ForexA 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
CryptoLiquidation in finance refers to the process of converting assets into cash, typically to settle debts or close down a b…
Liquidity
ForexLiquidity refers to the ability of an asset to be quickly bought or sold in the market without causing a significant cha…
Liquidity Pool
ForexIn finance, a liquidity pool is a collection of funds locked in a smart contract on a decentralised exchange platform. T…
Liquidity Provider
BrokersA Liquidity Provider is a financial institution or individual that supplies liquidity to the market by offering buy and…
Loss Aversion
RiskLoss aversion is a behavioural finance concept describing investors' tendency to prefer avoiding losses rather than acqu…
Lot
ForexA "Lot" in trading and finance refers to a standardised quantity of an asset that is bought or sold in a single transact…
Lot Size
ForexA "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
TAThe Moving Average Convergence Divergence (MACD) is a popular technical analysis tool used in trading to identify change…
MAM Account
BrokersA Multi-Account Manager (MAM) account is a sophisticated trading platform feature enabling professional traders to manag…
MAS
RegulationThe term "MAS" refers to the Monetary Authority of Singapore, the country’s central bank and financial regulatory author…
Major Pair
ForexA "Major Pair" in the context of foreign exchange (forex) trading refers to a currency pair that involves the US dollar…
Margin
ForexMargin refers to the funds an investor must deposit with a broker to cover potential losses in leveraged trading positio…
Margin Call
ForexA Margin Call occurs when the value of an investor's margin account falls below the broker's required minimum. This typi…
Market Capitalisation
ForexMarket Capitalisation, often referred to as "market cap", is a measure of a company's total value as determined by the s…
Market Depth
ForexMarket Depth refers to the market's ability to sustain relatively large market orders without impacting the price of the…
Market Maker
ForexA market maker is a financial intermediary that provides liquidity to financial markets by being ready to buy and sell s…
Market Order
ForexA 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
FundamentalMarket Sentiment refers to the overall attitude or feeling of investors towards a particular financial market or asset.…
Market Session
ForexA "Market Session" refers to a specific period during which a financial market is open for trading. It involves defined…
Market Structure
TAMarket structure refers to the organisation and characteristics of a financial market that determine the interactions be…
Maximum Drawdown
RiskMaximum Drawdown refers to the largest peak-to-trough decline in the value of an investment portfolio, trading account,…
Mean Reversion
ForexMean Reversion is a financial theory suggesting that asset prices and historical returns eventually revert to their long…
Meme Coin
CryptoA "Meme Coin" is a type of cryptocurrency that gains popularity and value primarily through social media influence and o…
MetaTrader 4
ForexMetaTrader 4 (MT4) is a widely used electronic trading platform developed by MetaQuotes Software, primarily for forex tr…
MetaTrader 5
ForexMetaTrader 5 (MT5) is an advanced multi-asset trading platform developed by MetaQuotes Software, offering comprehensive…
MiFID II
RegulationMiFID II, or the Markets in Financial Instruments Directive II, is a comprehensive piece of legislation created by the E…
Micro Lot
ForexA 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
ForexIn the foreign exchange market, a "Minor Pair" refers to a currency pair that does not involve the United States Dollar…
Momentum
ForexMomentum in finance refers to the tendency of an asset's price to continue moving in its current direction. This concept…
Money Management
RiskMoney Management refers to the strategic process of budgeting, saving, investing, spending, or otherwise overseeing the…
Money Supply
FundamentalThe term Money Supply refers to the total amount of monetary assets available in an economy at a specific time. It inclu…
Morning Star
TAThe "Morning Star" is a bullish candlestick pattern used in technical analysis to signal a potential reversal from a dow…
Moving Average
ForexA moving average is a widely used statistical indicator in trading and finance that smooths out price data by creating a…
Multiple Timeframe Analysis
TAMultiple Timeframe Analysis (MTA) is a trading strategy that involves examining the same asset across different timefram…
Mutual Fund
ForexA mutual fund is an investment vehicle that pools money from multiple investors to purchase a diversified portfolio of s…
N(5)
NFA
RegulationThe National Futures Association (NFA) is a self-regulatory organisation in the United States, responsible for overseein…
NFT
CryptoA Non-Fungible Token (NFT) is a unique digital asset representing ownership of a specific item or piece of content, stor…
Negative Balance Protection
ForexNegative Balance Protection is a safety feature offered by many trading platforms and brokers, designed to protect trade…
No Dealing Desk
ForexA "No Dealing Desk" (NDD) refers to a type of trading execution model used by brokers that enables transactions to be pr…
Non-Farm Payrolls
ForexThe term "Non-Farm Payrolls" (NFP) refers to the monthly data released by the United States Bureau of Labor Statistics,…
O(9)
OBV
TAOn-Balance Volume (OBV) is a technical analysis indicator that uses volume flow to predict changes in stock price. Devel…
OCO Order
ForexAn OCO Order, or "One Cancels the Other" order, is a pair of conditional orders within trading, where the execution of o…
OTC Market
ForexThe OTC (Over-the-Counter) Market refers to a decentralised market where trading of financial instruments, such as stock…
Open Interest
CryptoOpen Interest is a key metric in the trading of futures and options contracts, representing the total number of outstand…
Options
ForexOptions are financial derivatives that provide the buyer the right, but not the obligation, to buy or sell an underlying…
Order Block
TAAn Order Block is a collection of orders grouped together in the financial markets, typically used by institutional trad…
Order Book
ForexAn Order Book is a digital or physical record maintained by a financial exchange or a broker that lists all buy and sell…
Order Flow
ForexOrder flow refers to the process by which buy and sell orders are received and executed in the financial markets. It pro…
Overtrading
RiskOvertrading occurs when a trader executes a disproportionately large number of trades, often without sufficient analysis…
P(24)
P/B Ratio
ForexThe 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
ForexThe 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
BrokersA Percentage Allocation Management Module (PAMM) account is a type of investment account that allows traders to allocate…
PMI
ForexThe Purchasing Managers' Index (PMI) is a vital economic indicator that reflects the prevailing direction of economic tr…
PPI
FundamentalPPI, or Producer Price Index, is a financial metric that measures the average change over time in the selling prices rec…
Parabolic SAR
TAThe Parabolic SAR (Stop and Reverse) is a technical analysis tool used to determine the direction of an asset's momentum…
Pending Order
ForexA Pending Order in trading refers to an instruction given to a broker to buy or sell a financial instrument at a predete…
Perpetual Contract
CryptoA perpetual contract is a type of financial derivative that allows traders to speculate on the price of an underlying as…
Pin Bar
TAA Pin Bar is a candlestick pattern used in technical analysis to indicate potential reversals in market price trends. Ch…
Pip
ForexA "pip" is a standardised unit of measurement in forex trading that denotes the smallest price movement an exchange rate…
Pip Value
ForexThe 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
TAPivot Points are a technical analysis indicator used by traders to determine potential support and resistance levels in…
Portfolio Diversification
ForexPortfolio Diversification refers to the investment strategy of spreading investments across various financial instrument…
Position Sizing
ForexPosition Sizing refers to the process of determining the appropriate amount of capital to allocate to a particular trade…
Position Trading
ForexPosition Trading is a long-term investment strategy where traders hold positions in financial instruments such as stocks…
Price Action
ForexPrice Action refers to the movement of a security's price plotted over time. It serves as the foundation for all technic…
Price Gap
ForexA Price Gap refers to a discontinuity on a financial instrument's price chart where the asset's price moves sharply up o…
Prime Broker
ForexA Prime Broker is a specialised financial institution or a division within a larger financial entity that provides a sui…
Profit Factor
RiskThe Profit Factor is a key performance metric used in trading to evaluate the efficiency of a trading strategy. It is ca…
Proof of Stake
CryptoProof of Stake (PoS) is a consensus mechanism used in blockchain networks to validate transactions and create new blocks…
Proof of Work
CryptoProof of Work (PoW) is a consensus mechanism used in blockchain networks to validate transactions and secure the network…
Prop Firm
ForexA "Prop Firm," or Proprietary Trading Firm, is a financial institution that deploys its own capital to trade financial i…
Pump and Dump
CryptoA "Pump and Dump" is a fraudulent scheme that involves artificially inflating the price of a stock through misleading, e…
Purchasing Power Parity
ForexPurchasing Power Parity (PPP) is an economic theory that compares different countries' currencies through a "basket of g…
Q(3)
Quantitative Easing
FundamentalQuantitative Easing (QE) is a monetary policy instrument used by central banks to inject liquidity into the economy by p…
Quantitative Tightening
FundamentalQuantitative Tightening (QT) is a monetary policy tool used by central banks to reduce the amount of money circulating w…
Quote Currency
ForexThe term Quote Currency refers to the second currency listed in a currency pair within the foreign exchange market. It i…
R(16)
R-Multiple
RiskThe term R-Multiple refers to a metric used in trading and finance to assess the potential risk-reward ratio of a trade.…
ROE
ForexReturn on Equity (ROE) is a financial metric that measures a company's profitability relative to shareholders' equity. I…
RSI
TAThe Relative Strength Index (RSI) is a momentum oscillator used in technical analysis to measure the speed and change of…
Realised P&L
ForexRealised P&L refers to the profit or loss that a trader has actually incurred from closed positions within a given p…
Recession
FundamentalA recession is a significant decline in economic activity across the economy that lasts for an extended period, typicall…
Requote
BrokersA requote occurs in financial trading when a broker offers a different price for a trade than originally quoted due to m…
Reserve Currency
ForexA reserve currency is a foreign currency held in significant quantities by governments and institutions as part of their…
Retail Sales
FundamentalRetail Sales is a key economic indicator that measures the total receipts of retail stores from the sale of goods and se…
Retracement
TAA retracement in trading and finance refers to a temporary reversal in the direction of a financial asset's price, inter…
Revenge Trading
RiskRevenge trading is a behavioural pattern in financial markets where a trader attempts to recover losses by making impuls…
Risk Management
ForexRisk Management refers to the identification, assessment, and prioritisation of risks followed by coordinated efforts to…
Risk-On / Risk-Off
FundamentalThe term Risk-On/Risk-Off refers to investment behaviours that reflect investors' risk tolerance in response to market c…
Risk/Reward Ratio
ForexThe Risk/Reward Ratio is a financial metric used by traders and investors to assess the potential profit of a trade rela…
Rollover
ForexRollover is a financial term used primarily in the context of foreign exchange (forex) trading to describe the process o…
Rollover / Swap
ForexA "Rollover" or "Swap" in trading refers to the process of extending the settlement date of an open position in the fore…
Rug Pull
CryptoA "Rug Pull" is a type of scam prevalent in the cryptocurrency and decentralised finance (DeFi) markets, where developer…
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STP Broker
BrokersAn STP (Straight Through Processing) broker is a type of financial intermediary that processes transactions electronical…
Safe Haven
FundamentalA "Safe Haven" refers to an investment that is expected to retain or increase in value during times of market turbulence…
Scalping
ForexScalping is a trading strategy that involves making numerous trades over short time frames, typically seconds to minutes…
Sector Rotation
ForexSector Rotation is an investment strategy that involves moving investments from one industry sector to another in antici…
Seed Phrase
CryptoA seed phrase, also known as a recovery phrase or mnemonic phrase, is a sequence of words generated by a cryptocurrency…
Segregated Funds
ForexSegregated funds refer to a financial arrangement where a broker or financial institution keeps client funds in separate…
Sentiment Analysis
ForexSentiment Analysis refers to the method of using data analytics to gauge public opinion or emotion towards a particular…
Share Buyback
ForexA share buyback, also known as a share repurchase, is a corporate action where a company buys back its own shares from t…
Sharpe Ratio
RiskThe Sharpe Ratio is a financial metric used to evaluate the risk-adjusted return of an investment or portfolio. It measu…
Short Selling
ForexShort selling is a trading strategy that involves selling a security that the trader does not currently own, with the in…
Slippage
ForexSlippage refers to the difference between the expected price of a trade and the actual price at which the trade is execu…
Smart Contract
ForexA smart contract is a self-executing contract with the terms of the agreement directly written into lines of code. These…
Smart Money Concepts
TASmart Money Concepts refer to a trading strategy that focuses on monitoring and emulating the trading actions of institu…
Social Trading
ForexSocial Trading is an innovative investment practice that involves the sharing of trading strategies and insights among a…
Sortino Ratio
RiskThe Sortino Ratio is a financial metric used to evaluate the risk-adjusted return of an investment portfolio, focusing s…
Spot Market
ForexThe spot market is a financial marketplace where financial instruments such as commodities, currencies, and securities a…
Spread
ForexThe term spread in trading and finance refers to the difference between the bid price and the ask price of a security or…
Spread Betting
BrokersSpread betting is a type of derivative trading that allows investors to speculate on the price movements of financial ma…
Stablecoin
CryptoA stablecoin is a type of cryptocurrency designed to maintain a stable value by being pegged to a reserve asset, such as…
Stagflation
FundamentalStagflation refers to an economic condition characterised by the simultaneous occurrence of stagnant economic growth, hi…
Staking
CryptoStaking refers to the process of actively participating in the validation of transactions on a blockchain network by hol…
Stochastic Oscillator
TAThe Stochastic Oscillator is a momentum indicator used in technical analysis to compare a particular closing price of an…
Stock Market Index
ForexA Stock Market Index is a statistical measure that reflects the composite value of a selected group of stocks. It provid…
Stock Split
ForexA stock split is a corporate action where a company divides its existing shares into multiple new shares to boost the st…
Stop Out Level
ForexThe "Stop Out Level" is a predetermined point set by a broker at which a trader's open positions are automatically close…
Stop-Limit Order
ForexA stop-limit order is a conditional trade order used in the trading of securities, combining the features of a stop orde…
Stop-Loss Order
RiskA 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
TASupply and demand zones are critical areas on a financial chart where the price action demonstrates a strong supply or d…
Support and Resistance
ForexSupport and Resistance are fundamental concepts in technical analysis used by traders to identify potential price levels…
Swap
ForexA swap is a financial derivative contract where two parties exchange cash flows or liabilities from two different financ…
Swing Trading
ForexSwing Trading is a short to medium-term trading strategy that involves holding financial instruments for a period rangin…
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TVL
CryptoTotal Value Locked (TVL) is a metric used to assess the overall value of assets deposited in a decentralised finance (De…
Take-Profit Order
ForexA take-profit order is a type of trading instruction given to a broker to automatically sell a security once it reaches…
Technical Analysis
ForexTechnical Analysis refers to the method of evaluating and forecasting the future price movements of financial assets bas…
Tier 1 Regulator
RegulationA Tier 1 regulator is a top-level financial regulatory authority that oversees financial markets and institutions within…
Tokenomics
CryptoTokenomics, a portmanteau of "token" and "economics," refers to the economic framework and incentivisation mechanisms un…
Trade Balance
FundamentalThe trade balance is a measure of the difference in value between a country's exports and imports over a specified perio…
Trading Journal
RiskA Trading Journal is a detailed record maintained by traders to document all aspects of their trading activity. The prim…
Trading Plan
RiskA trading plan is a systematic approach designed to guide traders in their buying and selling decisions within the finan…
Trailing Stop
ForexA Trailing Stop is a dynamic stop-loss order that adjusts itself as the price of a security moves in a favourable direct…
Treasury Bonds
FundamentalTreasury bonds are long-term debt securities issued by a government to support government spending. Typically considered…
Trend Following
ForexTrend Following is an investment strategy that aims to capitalise on the momentum of market trends by buying assets when…
Trend Line
TAA trend line is a straight line drawn on a chart to indicate the direction of a market trend. This technical analysis to…
Triangle Pattern
TAA Triangle Pattern is a technical analysis chart pattern used in trading and finance to predict the future direction of…
U(1)
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VIX
ForexThe VIX, or Volatility Index, is a real-time market index representing the market's expectations for volatility over the…
VPS
BrokersA Virtual Private Server (VPS) is a hosted service that provides traders with a dedicated virtual machine, enabling them…
VWAP
TAThe Volume Weighted Average Price (VWAP) is a trading benchmark used to give the average price a security has traded at…
Value at Risk
RiskValue at Risk (VaR) is a statistical measure used to assess the potential loss in value of a financial asset or portfoli…
Volatility
ForexVolatility refers to the degree of variation in the price of a financial instrument over time. It is a statistical measu…
Volume
TAVolume in trading and finance refers to the total number of shares or contracts traded for a specific security or market…
Volume Profile
TAThe term Volume Profile refers to an advanced charting study that displays trading activity over a specified time period…
W(7)
Web3
CryptoWeb3 refers to the third generation of internet services that focuses on decentralisation, blockchain technology, and to…
Wedge Pattern
TAA wedge pattern is a technical analysis chart pattern characterised by converging trend lines that form a shape resembli…
Whale
CryptoA "Whale" in financial markets refers to an individual or entity that holds a substantial position in a particular asset…
White Label
BrokersThe term White Label in trading and finance refers to a product or service produced by one company that other companies…
Williams %R
TAWilliams %R is a momentum-based technical indicator that measures overbought and oversold levels in a financial market.…
Win Rate
RiskWin Rate is a metric used in trading and investing to indicate the percentage of profitable trades out of the total numb…
Wyckoff Method
TAThe Wyckoff Method is a technical analysis approach developed by Richard D. Wyckoff in the early 20th century. It focuse…
Y(2)
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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).
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