From 17.05.2021, Aerarium Limited, trading as Axiance (formerly as EverFX), is not permitted to provide regulated financial services to residents of the United Kingdom.

 
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    Glossary

    A
    Asset Class

    Investments are split up into different classes. The instruments are grouped depending on their similar characteristics. Each group is known as an asset class.

    Aussie

    A nickname which the Australian Dollar may be referred to by.

    ATR

    ATR stands for the Average True Range. This is a technique which traders are able to use as part of their strategy by which they use average price indicators to enter and exit trades. 

    Absolute advantage

    The ability of an organisation, central bank or government to produce a higher level of goods or services in comparison to competitors under the same circumstances.

    ATH

    All Time High

    Austerity

    Austerity refers to when government reduces public spending, normally in order to reduce the government's deficit. Austerity can include different changes to the fiscal policy such as public wage cuts and further taxes.

    Analysis

    A detailed examination of the elements or structure of the market. Most often done through Technical and Fundamental Analysis. 

    Appreciation

    The increase in value or price of the asset over time.

    Ask Price

    The Ask price is also known as the Offer Price is the price which a seller is willing to accept offers at.

    Arbitrage

    This is the simultaneous action of buying and selling financial instruments in two different markets in order to profit from differing prices in the same asset.

    Assets

    A financial product which can be traded between investors.

    AML

    Anti Money Laundering refers to regulations and procedures put in place in order to prevent criminals from disguising illegally obtained funds.

    Bond Yields

    Bonds are released with a interest rate at the end of a fixed period. The Bond Yield is referring to the amount of interest which the investor should receive on the investment. The yield may derive from the value of the investment or/and the interest rate.

    Bar Chart

    A type of chart which shows the opening price, closing price, price highs and lows within a specific timeframe.

    Base Rate

    The base rate is the interest rate which is set by a country's Central Bank which commercial banks are charged at. Central Banks also use the Base Rate to control economic spending habits.

    Bear/Bearish

    The term is used by traders when referring to an asset which is or may depreciate in value. Bears are known as individuals with a bearish perspective on the market or a specific asset.

    Bid Price

    The bid price is the figure which buyers in the market are willing to purchase the instrument at.

    Bonds

    A bond is a financial asset used by federal and private organisations to borrow money from the public with the intent to pay back within a fixed period with interest.

    Broker

    A broker is an intermediary which connects investors with the financial trading market.

    Bulls/Bullish

    Bulls are the opposite of Bears. Bulls have a positive opinion on an asset's price or market. Bullish describes a price which is or may increase.

    Balance

    Balance is the figure which indicates capital within a trading account including closed profit and loss but not figures from open trades.

    Bankruptcy

    Bankruptcy refers to the legal court procedure due to a firm's inability to pay debt due to either loss of income, increased expenditure, or even possibly an unforeseen financial crisis.

    Bailout

    A financial term referring to a high amount of lending or even a gift of capital to either a company or bank due to danger or certainty of bankruptcy.

    Buy

    To purchase or speculate that an asset will increase in value.

    Cable

    A nickname making reference to the GBP/USD.

    Candlestick Charts

    A candlestick chart is a chart style which shows both the opening and closing price, as well as the price highs and lows within a specific timeframe. The style is similar to a bar chart but has visual differences.

    Central Banks

    A Central Bank is a financial institution which controls the production and distribution of money as well as credit within a state. Normally the central bank will control monetary policy as well as regulate part of the banking sector.

    Closing Price

    The price which the financial instrument was traded to close a position. It can also refer to the last price within a session.

    Collateral

    A asset which is given as security in order to secure a loan. If the borrower is unable to repay the loan, the lender may take legal proceedings to take ownership of the security.

    Common Stocks

    A Common stock gives individuals ownership of an Organisation's shares with voting rights. However, the shares are classed as second in line when it comes to dividends payment. Preference Stocks are first to receive dividends but have no voting rights.

    Contracts

    The trade size within the financial trading market. Depending on the market and the asset, the contract may be measured differently. For example, currencies are contracted in Lots whereas Gold is traded using ounces.

    Commodities

    Physical goods which are traded on the financial exchange markets similarly to financial instruments. Commodities are split up into smaller subcategories such as metals, energy and agricultural products.

    Counterparty

    One of the participants within a financial transaction.

    CPI

    Consumer Price Index is an index which measures the average price of consumer goods and services purchased by households. The products/services measured within the index is fixed.

    Cross Currencies

    Cross Currencies also known as Minor Currency Pairs are pairs which do not include the US Dollar. Common Cross Currency pairs include either the Euro, Pound or Japanese Yen.

    Currency Pairs

    The exchange rate between two currencies. There are three types of currency pairs; Major, Minor and Exotic.

    Currency Symbol

    The Symbol which is used to represent the product. Normally the trading symbol will be an abbreviation.

    Cryptocurrencies

    A Cryptocurrency is a digital currency which similarly to traditional currencies are valued against a second currency. Currently cryptocurrencies are unregulated and mainly speculative.

    Correlations

    When the price of an asset is linked to the price movement of a separate asset. The market has both positive correlations and inverse correlation. For example, the US Dollar and Gold.

    CFDs

    CFD is an abbreviation standing for Contract for Difference. CFDs are a tradable financial derivative which give individuals the option to speculate the market without owning the underlying asset. CFDs are normally traded using leverage.

    Demand Shock

    An unexpected change in demand, such as a rise or fall in autonomous consumption, investment, or exports.

    Daily Cut-off

    The point of day at which the trading day is over and trading stops. Traders will no longer be able to open and close trades.

    Disinflation

    The decrease in the level of inflation but not necessarily showing a figure of deflation.

    Deflation

    A decrease in the general price level within an economy. Country's will normally use a basket of assets and services in order to determine the rate of deflation or inflation.

    Day Trading

    Day Trading is a trading strategy which involves opening and closing trades within the same trading day. One of the benefits of day trading is avoiding swap fees.

    Disposable income

    Income available after an individual's taxes have been paid. Countries have indexes which measures the average disposable income and can be used to determine economic conditions and sustainability.

    Depreciation

    Depreciation refers to the price of an asset decreasing in value.

    Dividends

    Dividends are the payment received by shareholders from the company’s earnings. The amount of dividends paid is determined by the group of directors.

    Dovish

    This Term "Dovish" is normally referring to comments regarding monetary policy. Dovish is when the central bank is unlikely to take aggressive actions such as increasing interest rates.

    DOM

    The DOM stand for Depth of Market. This is a tool which can be used on most platforms and is used to illustrate the supply and demand levels for liquid, tradable instruments.

    Dealer/Dealing

    A dealer is a financial intermediary that stands ready to buy or sell assets with its clients. The Dealing company trades on their own account and risk as the investors are trading against the dealing desk. This is in contrast with A Book brokers which simply act as an intermediary.

    Debt to GDP Ratio

    Debt to GDP Ratio is simply a figure measured in a percentage which shows the country's debt compared to its GDP. The figure is important as it indicates the ability of the country to pay back its debts based on its output and transactions. The lower the figure, the lower the risk of default.

    Double Bottom

    A Double Bottom is a technical term used for an asset which price collapses on two occasions and finds support at the same price. The Double Bottom reflects very strong levels of support and often indicates a strong change of trend.

    Decentralized

    Meaning the asset or market is not controlled by any single institution, for example, a central bank or central exchange. Cryptocurrencies are an example of a decentralized market as they are based on blockchain technology which results in all investors owning a copy of the blockchain.

    Debtors

    An individual or company which owes capital.

    Demo Account

    Known as a practise account whereby traders can trade the market via fake capital and trades. This way the individuals are able to experience the trading market without risking capital.

    Exotic Pairs

    Exotic currency pairs refers to pairs which also include thinly traded currencies but at the same time will still include a major currency. For example, USDHKD, EURMXN and JPYNOK.

    Equity

    The balance within the account which takes into consideration both closed and open profit and loss.

    ECN

    An Abbreviation for ECN. An ECN broker is known as a 100% intermediary and not holding any trades in-house. The ECN method is a technology and structure which connects investors with numerous liquidity providers which may be both banks and non-bank organisations.

    Economic Calendar

    An Economic calendar is a calendar which states all the economic events in the market scheduled to be released including days and times. Traders use economic calendars to keep up to date with market news.

    Economic indicators

    Economic indicators are used by traders to evaluate the economic, a specific market or asset. Indicators can use various indices, earnings reports, economic summaries and figures such as inflation rates, employment figures and interest rates.

    Eurobonds

    A Eurobond is an international debt instrument which is denominated in a currency not native to the country where it is issued. Named after the Eurozone where the instrument was first introduced.

    Eurozone

    The Eurozone or Euro Area is an economic union of 19 member states of the European union that have adopted the Euro as their primary currency.

    Employment Change

    The Employment change is a report issued by government which measures the total number of individuals which have either lost or gained employment during the previous month. The figures can be positive or negative.

    Exchange Rate

    The price of one currency against a counter currency. For example, 1 Euro will buy 1.20US Dollars.

    Exchange rate risk

    The potential loss of capital or value due to an adverse price movement in an exchange rate.

    Exports

    Exports refer to any good, commodity or service sold abroad.

    Elliot Wave Theory

    The theory follows the ideology that the market tends to follow a repeating pattern which is driven by trader psychology regarding price action. Regardless of market conditions and developments the theory advises the price will primarily follow a impulse wave and corrective wave pattern.

    Endowment

    A pool of financial assets for a specific purpose in accordance to the objective of its founders and donors.

    Excess Demand / Supply

    Excess demand refers to conditions where the demand is higher than the supply in the market. Excess supply refers to conditions were the supply is higher than the demand in the market. Both can cause high levels of volatility.

    Fiscal Policy

    A Fiscal Policy refers to the government's policy relating to revenue and expenditure. Fiscal policies can be altered to influence the economic.

    Fiat Money

    Fiat Money is a currency which is issued by the government that is not backed by a commodity such as Gold. The value of Fiat money is mainly derived from Supply and Demand.

    Fiscal Stimulus

    Fiscal Stimulus is method taken by the government to increase government spending and/or cut taxes in order to support the economy and prompt growth.

    FDI

    Direct Foreign Investment is an investment made by a firm or individual in one country into business interests located in another country.

    Fundamental Analysis

    Fundamental Analysis is a method of market analysis based on evaluating how economical figures and events can affect the supply and demand of a currency or asset and consequently the price.

    Federal Reserve

    The American Central Bank which controls monetary policy.

    Financial Risk

    Financial Risk is the risk of loss through an investment, savings product or business venture.

    Forex

    Forex is a term which references to the foreign exchange market.

    Fictional unemployment

    Fictional unemployment is known as the unemployed who are so voluntarily. For example, it may be due to an intermission between a change of employers.

    FRC

    The Federal Reserve Committee makes key decisions about interest rates and the growth of the United States money supply which both have a strong effect on the US Dollar and economy.

    Futures Contracts

    Futures are derivatives meaning that traders are speculating on price movement without actually owning the underlying asset. The buyer must purchase or the seller must sell the underlying asset at the set price, regardless of the current market price at the expiration date.

    FCA

    The Financial Conduct Authority is the UK regulator which regulates the financial services market.

    Fisher Effect

    The fisher effect is a theory which describes the relationship between country's inflation and the Central Bank's interest rates.

    Fakeout

    A fakeout is a false breakout that occurs when the price moves outside of a chart pattern but then moves right back inside it. This is known to cause buyers and sellers in the market which get mislead by the movement in the market.

    Fading

    Fading makes reference to a technique used by traders by which they monitor the momentum in the price movement to determine when the movement may fade due to being oversold in the short term. This is mainly used by traders in order to avoid a retracement in the price.

    Forex Trading Robot

    A software which is implemented on the trading platform which trades automatically normally based on technical aspects of the market such as trends, support and resistance.

    Foreign Bonds

    A foreign bond is a debt instrument issued in a regional market by a foreign entity in the domestic markets' currency as a means of raising capital. For example, a US Company issues foreign bonds in Greece in Euros.

    GDP / Gross Domestic Product

    Gross Domestic Product is the value of all goods and services made within a country during a specific period. GDP is worked out as follows GDP = Consumption + Investment + Government Spending + Net Exports. GDP provides an economic snapshot of a country, used to estimate the size of an economy and growth rate.

    Growth Recession

    This is known as the period where the economy is growth so not technical in a recession, but growing at such a slow pace that more damage than good is being done to the economy and employment sector.

    Government Revenue

    The government's revenue obtained through taxes, ventures and non-tax sources to enable it to undertake government expenditures and general fiscal actions.

    Gap

    A market gap reference the point which prices moves significantly fast causing a gap in price without any trades occurring. Gaps usually follow economic data or news announcements.

    Greenback

    The nickname for the US Dollar.

    G7

    Group of 7 Nations - United States, Japan, Germany, France, Italy, United Kingdom and Canada.

    Gross National Product

    GNP is the estimated total value of all the products and services turned out in a given period by the means of production owned by a country's residents. Should not be confused with GDP which has a very different formula.

    Government budget Balance

    The government's budget takes into consideration the government's revenues and spending within a financial year. A positive figure is known as budget balance surplus and a negative figure is known as budget deficit.

    Gross income

    Gross income is the total income from all sources before the deduction of taxes and other deductions such as private pensions and social insurance.

    Government Failure

    Poor economic conditions caused by government intervention.

    Hedge Finance

    A hedge is an investment whereby the related parties look to minimize or offset the risk that the assets will decrease in value. Hedge positions is when you open a two positions on the same asset but in opposite directions.

    Hit the Bid

    To sell an asset at the current market price.

    Higher low, Higher High

    Higher lows and highs make reference to technical methodology by which the traders look to ensure that the price waves achieve a continuous higher swing high and higher swing lows.

    Headline Risk

    This is the risk that the media and general news stories will adversely affect the price of the asset. This is possible even if technically nothing has changed within the market. For example, discriminative comments by a company's CEO may result in traders selling their shares.

    Hyperinflation

    Hyperinflation refers to extremely high levels of inflation which are deemed to adversely affect the economy in the longer term.

    Hard Currency

    a hard currency refers to capital that is issued by a country that is viewed as economically stable.

    Hedging

    A trading technique in which the trader opens two trades in opposing directions.

    House Stats

    The number of permits for new houses.

    Halving

    Halving is a preprogramed method to control the supply of a cryptocurrency by reducing the mining reward by half.

    Hammer Candlestick

    Referring to a candlestick which has formed a small high body with a long tail or shadow.

    Hawk/Hawkish

    This is a word used to describe a personal or a comment which is in favour of a tighter monetary policy. For example, a article may state that the chairman's comments were extremely hawkish, meaning he was in favour of a stronger monetary policy.

    Interest Rates

    The figure charged by banks to the market as well as the percentage that banks charges each other on the interbank market. The Central Bank will also set a rate which is known to be the most influential in the market.

    IMF

    International Monetary Fund. The idea behind the IMF is to promote economic growth, financial stability around the globe and encourage international trade. The IMF is an international organisation.

    ICO

    Initial Coin Offering is a mean by which a cryptocurrency venture can raise capital from supporters by issuing tokens.

    Implied Volatility

    The volatility which is currently or believe to soon take place which is not based on past performance or data.

    Imports

    Imports are goods and services that are bought from outside the economic zone or country.

    Inflation

    The Percentage in which goods and services within an economy has risen. Inflation can be viewed positively or negatively depending on the individual viewpoint and rate of change.

    Initial Jobless Claims

    The Initial Jobless Claims is a U.S. report that measures the number of individuals who filed for state unemployment insurance for the first time over a period of time.

    Initial Margin

    Also known as required margin. This is the capital required as a minimum to open a trading position in the market. Normally seen on leveraged products.

    Interbank Rates

    This is the interest rate which banks charge on the interbank market for short term loans required to meet capital adequacy requirements. Interbank rates can sometimes also be referenced to the exchange rates which large banks charge each other.

    Investment Yield

    The income which an individual has received on an investment. For example, this may be dividends or interest.

    Illiquid

    Reference to minimal volume being traded in the financial trading market; a lack of liquidity often creates difficult market conditions.

    Initial Public Offering

    Also known as IPO. The process which a private company offers shares to the public via an exchange and/or investment bank.

    Indices

    Grouped shares traded as one instrument. For example, the SNP500 is one trading instrument which has grouped 500 US based Stocks.

    Inventory

    Inventory is the term for the goods available for sale and raw materials used to produce goods available for sale.

    Insolvency

    Similarly to Bankruptcy, this is another term which refers to when an individual or company is unable to pay his financial obligations.

    Interbank market

    The interbank market is a global network used by mainly financial institutions to trade currencies and other currency derivatives between each other.

    Investment Fund

    Investment fund is a broader term for different types of investment whereby individuals come together to form one investment in order to seek better investment opportunities, better management expertise and asset which normally would not be available.

    Japanese Candlesticks

    A form of type which confirms the opening price, closing price, price high and price low.

    JPN225

    The most popularly traded Japanese index also known as the Nikkei225.

    Jolt

    The job openings and labour turnover survey. A survey which is done in order to measure job vacancies in the market

    JMMC

    The Joint Ministerial Monitoring Committee. The Committee is tasked with ensuring that OPEC's targets are achieved through voluntary adjustments.

    Junk Bonds

    Junk Bonds are still a form of debt instrument whereby individuals are able to invest in a private company. However, Junk Bonds tend to have high yields but have a lower credit rating resulting in higher risk.

    Keep the Powder Dry

    A phrase used by traders referring to limiting trades due to unclear market movements. Due to the unclear movements, traders hold back waiting for a clear opportunity.

    Kiwi

    A nickname for the New Zealand Dollar.

    KYC

    Know your Client. A process of formally identifying your client in accordance to local requirements either before or during the time that they start doing business with you. This is normally done via proof of ID and Proof of Address.

    Knock ins / outs

    A knock in refer to an Option which is not available until a specific price is met. A knock out refers to the trade not exiting until again a specific price is met. The action is done automatically once implemented.

    Kickback

    An unethical payment in order to receive preferential treatment in the Financial Trading Markets.

    Loose money Policy

    Making reference to the central bank attempting to increase the money supply within the economy and promote economic growth or stabilization.

    Loan

    A form of type where an individual or entity borrows capital which is normally repaid with interest.

    Law of Demand

    The law of Demand is a theory along with the law of Supply that explains how markets' economies allocate resources and determine the prices of goods and services that are tradeable on exchanges and in the market.

    London Session

    08:00 – 17:00 (London time)

    Ledger

    A record of total transactions.

    Latency

    This refers to the delay between the placement of the trade and the execution of the platform. This is something extremely important to ultra short term traders and/or at times during high levels of volatility where latency can result in a sizeable difference.

    Lot

    A lot references the trade size when trading Foreign exchanges. One Lot equals 100,000.

    Loonie

    The nickname for the Canadian Dollar.

    Liability

    A trade with a high potential to result in a disadvantageous result.

    Levels

    A price zone which is significant for a technical based analysis trader or a trader evaluating orders.

    Leading indicators

    Figures and events that are considered to predict future economic activity.

    Leverage

    Leverage is when the broker increases your buying power resulting in you being able to trade larger sums with only a faction of the capital required. This increases both potential and risk.

    Limit Order

    A pending order which is set to buy when the price drops or sell when the price increases in value.

    Liquidation

    Closing one position by opening a new position to offset it.

    Long

    Long Positions refers to a trade where the investor is speculating the asset will increase in value.

    Liquid

    A market or instrument which allows easy and quick flow of capital.

    LTV

    Loan to value.

    LIBOR

    London Interbank Offered Rate.

    Line of Credit

    When a trader has access to present limited borrowing without having to apply for the loaned capital on each occasion. The capital is preagreed and available to the trader or individual at any time.

    Macroeconomics

    The evaluation of the economy which concentrates on aspects which will affect the economy as a whole such as interest rates, inflation and unemployment.

    Marginal Cost

    The additional increase in total cost when one more unit of output is produced.

    Microeconomics

    Similar to Macroeconomics this also evaluates the market but instead looks mainly at individuals, households and individual business. For example, spending habits can be linked to microeconomics.

    Major Currency Pairs

    A currency pair which includes the US Dollar.

    Mean Reversion

    A trading theory which indicates that no matter how the price may move in the short term, in the medium to the longer term the price will return to the mean or average level. These theory concentrates at looking for opportunities via price corrections and pullbacks.

    Monetary Policy Committee

    A Central Bank will have a MPC which will analyse the economic requirements and vote on adjecting the policy accordingly. This is known to be of high importance within the trading market.

    Monetary Policy

    Actions taken by the country's central bank through interest rates and supply of capital in the market in order to control inflation and promote a healthy stable economy.

    Money Supply

    This is the total amount of capital in circulation in the economy during a particular time period. It is considered an important instrument in controlling inflation which is exercised by the Central Bank.

    Mortgage

    A loan secured by a property which I repaid over a longer period with interest.

    Mutual Fund

    A pooled investment whereby the fund looks to mitigate risk across different assets and markets.

    Margin

    In economics the margin refers to the difference between the cost of production and the selling price. In forex the term can represent the amount of capital required to open a position.

    Margin Call

    This is a warning that traders receive advising them that the capital in their account has fallen close to the minimum capital requirements. This gives traders time to take action before the minimum is reached. If the minimum is reached the platform will start to automatically close trades.

    Mark to Market

    Placing all open positions in a trading account to current market prices.

    Market Cap

    Total Market value of the company's outstanding shares.

    Market Maker

    An intermediary which continuously quotes bid and ask prices of assets while keeping all trades inhouse.

    Market Risk

    Market risk is the risk of financial loss through an investment caused by price movement against the speculate direction.

    Morning Star

    A candlestick which has closed close to its open price after two bearish candlesticks. The idea is that the loss of momentum main indicate a weakness in the downtrend.

    Mining

    Mining is the process where transactions are verified and added to a blockchain.

    Mini Lot

    One tenth of a lot and represents 10,000 units.

    Micro Lot

    1/100th of a Lot and represents 1,000 units.

    Macro

    Referring to an extremely long term view on the market and trading anywhere from 6 months to several years.

    Market Order

    Enter a trade instantly at the current market price.

    Maturity

    Fixed investments have an end date, maturity is referencing the date of settlement or expiry of a financial product.

    Momentum

    The Speed and Strength which the price moves.

    MT4/5

    Abbreviation for Metatrader 4 and Metatrader 5 which are both professional trading platforms. Both platforms are known to be the most used in the retail market.

    Non Farm Payroll

    The total number of paid workers in the US not taking into consider farming related jobs.

    Notional Amount

    The total amount of transaction.

    NDF

    Stands for a Non Delivery Forward. A derivative which settles the difference between the contract price and prevailing spot market price at the end of the agreement.

    NASDAQ

    A US Index which has grouped 100 US based Stocks. Mainly technology stocks.

    NYS

    New York Session - 8:00 AM ET and closes at 5:00 PM ET.

    Noise Trading

    Trading without the use of fundamental data or with minimal data.

    News trading

    Trading at times of economic announcements or political events in order to trade at high levels of volatility.

    Negative Yield Curve

    Also known as an inverted Yield Curve. This is when short term debt instruments such as Bonds are obtaining higher investment yields than long term instrument. Though it is more common for longer term products to have higher returns.

    Net Trade Profit

    The capital gained at the end of the investment period or maturity date.

    Negative Gap

    When the market opens at a lower price leaving a negative gap in the price.

    Oversold

    Either sold at a price below its true value or decline at a rate faster that its true market value.

    Order Book

    An electronic list of orders for an asset. The order covers both buy and sell orders.

    Overbought

    Either bought at a price above its true value or has increased in value faster than its true market value.

    OPEC

    The Organization of the Petroleum Exporting Countries. The organisation includes 13 countries which control the world's supply of oil.

    Old Lady

    Refers to the Bank of England.

    On Neck

    A candlestick trading pattern referred to as part of technical analysis. The On Neck pattern is formed from two candlesticks, the first is a tall down candle, followed by a much shorter up candle that gaps down on the open but then closes at or near the prior candle’s close.

    Oscillator

    A technical indicator which measures momentum and designed to indicate momentum as well as potentially oversold and overbought prices.

    OTC

    Over the Counter. Referring to investments products which are normally traded via a broker or intermediary.

    Offer Price

    Also known as the Ask price. The price in which you are able to buy the product at.

    Options

    A derivative product where you are able to trade and speculate the price movement of asset without owning the actual asset.

    Overdraft

    An extension of credit from a lending institution or bank that is traditionally reagreed in the case that an account reaches zero.

    Overhead

    Another word for expenses which are not directly related to creating a product.

    Offset

    Referring to when a trader opens a trade in the opposite direction to a previous trade. For example, if you have an open buy trade on the EURUSD but then open a Sell trade on the same asset, this can be referred to as offsetting.

    Preferred Stocks

    Stock which offer traders dividends as a priority, meaning being paid before Common Stockholders. Also if the company goes into liquidation, Preference stock holders again have priority. Preference Stockholders do not hold any voting rights.

    Penny Stocks

    Stocks being sold on the financial exchange market but are less than $5 and normally refer to small companies.

    Position

    Open Trades.

    Premium

    The amount in which the price of the stock has increased above its issue price.

    Presale

    A private sale before the initial coin offering.

    Price Action

    Referring to an assets price movement. Price Action analysis refers to analysing the price without the use of indicators.

    Price Transparency

    Equal access to the market for all traders at the same quote price.

    Profit and Loss Statement

    A statement with all trades including positions which resulted in profit as well as losses.

    PPI

    A report released by all countries which measures the change in selling prices, or wholesale prices, received by domestic producers for their output. The report is normally produced monthly and can cause high levels of volatility.

    Pullback

    A movement in the opposite direction to the trend.

    PMI

    Purchasing Managers Index is an index which evaluates the business and conditions of the manufacturing and service sectors of the country.

    Purchase power Parity

    PPP is a theory that states that the foreign exchange rate between two countries which different currencies should be equal to the ratio between the prices of a fixed basket of goods.

    Pivot Point

    The price which an asset changes direction, possibly a support or resistance level.

    PIP

    The fourth figure after the decimal point. Known to be the movement important point in a currency exchange

    PIPET

    The fifth figure after the decimal point.

    Parity

    When one currency's value is equal to another. For example, one Euro will buy one USD.

    Pair

    The value of one currency against another. For example, EURUSD.

    Partial fill

    A trade which has not been fully executed due to conditions placed on the trade order or due to market conditions

    Professional Investor

    A trader which meets regulatory requirements to be able to trade on higher leveraged products. Professionally classed traders normally have capital requirements placed by the local regulator, such as Cysec.

    Political risk

    Risk to the financial trading market brought about by political events. For example, presidential elections can create unusual volatility and movement in the market.

    Passive Order

    When you place an order for the trade to enter at a price different from the Bid and Ask price. The trade will not enter until the price is met.

    Price Floor

    The government imposed minimal for an asset or service. This can include wages and agriculture.

    Per Capita

    Per Capita in economics is referring to economic or statistical analysis converted to per individual.

    Price Ceiling

    Equal access to the market for all traders at the same quote price.

    Quantitive Easing

    Quantitive Easing or QE is a method related to the Monetary Policy whereby the Central Bank invests into the open market in order to increase the supply and circulation of capital into the economy. The ideology behind the method is that the increase will prompt Economic Growth.

    Quote

    The figure which the asset is being quoted by the broker.

    Quantitative Analysis

    An analysis of the exchange between two currencies based on statistical figures.

    Quote Currency

    The second currency in the currency pair. For example, the US Dollar is the quote currency in the EURUSD.

    Quality of Earnings

    The ability to predict future earnings based on your currency earnings.

    Quarterly CFDs

    A CFD contract which expires every 3 months. The trade will automatically close.

    Reversal

    A reversal, also known as a price correction, is a turnaround in the price of an asset.

    Recession

    When the GDP of a country has fallen by a minimum of 6 months and is considered as adverse economic conditions.

    Round Trip

    The buying and selling of a specified amount of currency.

    Rollover

    An overnight fee related to a trade. No fee is charged if not kept overnight.

    Risk Management

    The process and attempt to limit the risk in an investment in accordance to your risk appetite.

    Right Issue

    When current shareholders are offered the opportunity to purchase further shares at a discount. Due to the fact the more shares are made available in the market, the is an increase chance of the price of the stock to decrease.

    Rally

    A price recovery after a decline.

    Range

    A price range refers to a period where the price witnesses little volatility and stays within a define price high and low.

    Retracements

    A small price movement against the trend. Normally caused by traders cashing in profits.

    Resistance Level

    A price level where the asset's price find resistance and may either lose momentum or possible change direction.

    Retail Investor

    A trader which is unable to meet professional trading requirements set by the regulator due to net worth and/or experience. This will result in the trader having access to lower levels of leverage.

    Reserve Currency

    A currency which a bank holds as part of their reserves. The Reserve Currency is often used for international transactions as well as mitigate currency risk.

    Risk Sentiment

    A term used to describe how participants in the market are behaving and feeling towards investment risk.

    ROI

    Return on Investment.

    Risk on/off

    Referring to periods in the market where the risk sentiment is changing between Risk averse to high risk tolerance.

    Risk appetite

    The appetite which the markets has towards risk.

    Risk aversion

    When traders look for investments with more certainty as opposed to high uncertainty.

    Rising Wedge

    When the price waves of the asset start wide with high levels of volatility but quickly narrow.

    Russell 2000 Index

    An index composed of 2000 Small-Cap Companies.

    Safe Haven Currencies

    A theory that certain currencies that the market deems to most likely retain or increase in value during economic turmoil.

    Safe Haven Asset

    Similar to safe haven currencies, safe haven assets tend to maintain or appreciate in value during times of uncertainty, though this is not guaranteed.

    Scalping

    A trading method which is based on ultra short term positions.

    Spot

    The price of the asset at the exact time of the transaction.

    Sell Wall

    A sell wall is a large sell order that prevents the market price from going up until the entire sell volume is complete.

    Sell-off

    A situation where a large amount of shareholders sell their shares in a company suddenly causing the price to collapse. Sometimes this can be triggered by bad unexpected news.

    Selling Pressure

    When a large amount of selling or placing sell orders. The price may not necessarily be dropping yet but it is indicating that the market is expecting a drop.

    Sentimental analysis

    A method which the market may conduct in an attempt to predetermine possible price movements based on the market's sentiment towards risk, the industry and the instrument class.

    Settlement Period

    A period by which both parties must settle obligations to the transaction.

    Stag inflation

    Stagflation is known to be an extremely poor condition in the market where the inflation level is high but economic growth and employment is low.

    Sterling

    Alternative name for the Pound.

    Shooting Star

    A candlestick within a trend where the price opens higher, trades upwards but then drops back close to the opening price.

    Short

    Speculating the price will decrease.

    Short Squeeze

    When there is a high level of demand but a lack of supply resulting in traders trying to hold onto but offset short positions.

    Settlement Risk

    The possibility of one of the two parties in an investment transactions not being able to fulfil the terms of the position.

    Sideways market

    A period within a market where the prices are generally moving within a tight price range without any major trends forming.

    Slippage

    When a trade is open at a price different to the requested price, normally as a result of ultra high levels of volatility.

    Social Trading

    Social trading refers to when a broker allows traders to interact as well as copy trades of other traders.

    Sweeping

    Converting your profit and loss into US Dollars at the end of the trading session.

    Support Levels

    Prices where the price has historically found support and risen.

    Stop out

    When the margin level in the traders account has reached surpassed the minimum resulting in trades automatically closing.

    Stop order

    A pending order where a long position is placed above the current price or a short position placed below the current offered price.

    Stop loss

    An automatic order which closes the trade if the market moves against you by a predetermined level.

    Stop limit order

    A stop order which converts into a limit order after execution.

    Stamp Duty

    Tax on property. Historically this tax has also been used to control growth within the real estate market.

    Sloggy price

    A period in the market where the price is lacking meaningful trends or price movements.

    Spread

    The different between the bid and ask price.

    Swap

    An overnight fee per trade.

    Swing Trading

    Swing Trading is a medium term trading strategy whereby the trader looks to trade price swings which last longer than a day but not longer than a week.

    The January Affect

    A theory which states that the first month of the year has a tendency for the stock market to increase in value due to an increase in buying activity.

    Take profit

    An order to close the trade when the market is moving in your favour and reaches a certain price. Used to secure profits.

    Tick

    The smallest change in price.

    Three Black Cows

    A candlestick pattern of three consecutive bearish candlesticks.

    Trade Balance

    The difference between imported and exported goods.

    Trend Line

    Consecutive price highs and lows which form a straight line.

    Trend

    The price of the asset moving in one general direction.

    Triple Bottom

    The price movement forms three price lows at the same level and then forms a bullish breakout.

    Two way Price

    A format where both a buy and sell quote are given.

    Trading Heavy

    Used to describe an asset where the price has shown signs of moving lower despite buying attempts

    Technical Analysis

    An analysis of the price movement, charts and technical indicators

    Technical Indicators

    An indicator is inputted onto the chart using mathematical calculations based on the price movement, momentum and historic patterns to give further trading signals to the user.

    Thin

    When there is little volatility and activity in the market.

    Treasury Bills

    Short Term Government debt instrument with a maturity less than 1 year.

    Trading Volume

    Total units being traded.

    Treasury Bonds

    Short Term Government debt instrument with a maturity of 10 years and more.

    Trade Size

    The contract size. For example, 1 LOT.

    Trailing Stop

    A stop order which is not stationary but is defined by a percentage or amount of the movement in the opposite direction. Therefore the trade may even be closed in a loss.

    Treasury Notes

    Short Term Government debt instrument with a maturity of less than 10 years but more than 1 year.

    Units

    Units are how instruments are measured. The value of each unit will depend on the instrument.

    Unit Investment Trust

    A pooled investment which is structured through units and go straight to the individual unit owners instead of reinvesting them back into the fund.

    US Dollar Index

    The US Dollar valued as an index. The currency is valued against six currencies giving traders a stronger and fairer indication of the current price movement.

    Underlying Asset

    The instrument which the derivative is mimicking.

    Unified Managed Account

    A privately professionally managed account which includes multiple assets under one account.

    Unlevered Beta

    Removing the financial effects of leverage.

    Uptick Rule

    Regulation requiring short trades to be opened at a higher price than the previous trade.

    Urban Economic Analysis

    When a company or investor first analysis the regional urban issues such as crime, transport, housing and local governance.

    Volatility

    The measure of the amount by which the price of an asset or exchange fluctuates.

    Volume

    The measurement of the quantity of the investment.

    VPS

    VPS stands for Virtual Private Server. A program which allows traders to access a remote server. Normally used in order to execute EAs and other trading robots.

    Variation Margin

    Funds that a broker requests from a trader in order to have necessary margin deposited to maintain his positions.

    Value date

    The value on the date which the transaction was agreed.

    Vertical Analysis

    Vertical analysis is a method of analysing investments via financial statements that list each line item as a percentage of a base figure within the statement.

    VAT

    Value Added Tax is a type of tax that is levied on the price of certain products and services.

    Venture Capital

    Private funds which are loaned to new companies to assist the startup and early stages of business activities.

    Value Added

    The extras which are given to a product in order for the company to attract customers to buy a product for more than its production cost.

    Velocity of Money

    The measurement of how many time and the rate at which a currency was exchanged. High money velocity is usually associated with a healthy, expanding economy.

    Wash Trading

    Creating volume on your own investment, for example, buying and selling an asset from yourself. You trade with yourself in order to create the illusion of demand and market activity.

    Working Order

    A generic term which covers all types of pending orders including stop orders and limit orders.

    West Texas Intermediate

    Also known as WTI, this is a specific class of Oil which is known to have a strong effects on the demand and supply of Crude Oil prices.

    Welfare

    Support which is provided as part of the government fiscal policy in order to ensure citizens meet the minimum society needs such as shelter.

    Warrant

    A derivative where you trade the price of the underlying asset at a fixed price. The products tend to have expiration dates.

    Wealth

    An individual's capital and possessions.

    Wash Sales

    When a trader sells a loosing security in order to maximise his tax benefits. This is the clear sole purpose of the transaction.

    Working Capital

    The difference between a company's current assets and current liabilities.

    Whipsaw

    A term used when the market is seeing high levels of volatility including both a breakout and then a price correction.

    Wholesale Price Index

    Also known as WPI, an Index which tracks the changes in the price of goods and services in the early stages before reaching the retail stage.

    Weak Shorts

    A short trade held by a trader which will close the trade at the first signs of the price strengthening.

    Yield

    Profit which has been made on an investment.

    Yard

    One Billion Units.

    YOY

    Year on Year.

    Yield Chasing

    When the Central Bank in a certain region is suppressing the bank's interest rates at extremely low or negative levels.

    Year End Bond

    A reward paid to an employee at the end of the year.

    Yield Maintenance

    Compensation paid to a lender or investor due to loss of interest.

    Yield to Call

    The return the investor receives if he held the bond until the maturity date.

    Yield Spread

    The difference in the returns between different investments with different maturities, credit rating and risk margin.

    Yield Curve Control

    Yield curve control would provide households and businesses with additional accommodation by keeping interest rates not typically set by the Fed low.

    Zew Economic Index

    An index conducted within the Eurozone which is based on a survey with major institutional investors and analysts. The index is used to indicate economic health.

    ZEW Market Survey

    Similar to the Economic Index but concentrates mainly on investor sentiment within the market.

    Zero Coupon Bond

    A bond which instead of offering an interest rate, offers its investors a reduced purchase price. No interest is paid.

    ZIRP

    Zero Interest Rate Policy. When the Central bank has set extremely low interest rates in order to prompt economic growth or inflation.

    Zero Lower Bound

    when interest rates can’t fall any further below 0%.

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    Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.