An order that will be executed when moving towards the specified price of a market. Normally used in conjunction with 'One Order Cancels Another'.

A transaction that is not liquidated by physical payment or closed by another transaction of equal size and opposite direction.

It is a physical unpaid agreement.

The price at which traders can buy from a currency.

It is the difference between the bid and ask prices and is a measure of market liquidity. Low spreads usually mean high liquidity.

It is the currency used by the investor in accounting records. In the Forex market, this unit is generally US dollars, but British Pound, Euro and Australian Dollar can also be used.

The process of simultaneously buying or selling an instrument and taking an equal and opposite position in a linked market in order to take advantage of small price differences between markets.

It means the price at which the trader is ready to sell.

It is the central bank of the European Monetary Union. (AMB)

Market conditions where prices lose value.

A person or institution that serves as an intermediary. It brings together buyers and sellers for a fee or commission. In contrast, a 'seller' takes a portion of a position by placing money. The hope in this is to make a difference (profit) by closing the position with the next trade in another lot.

It is the German Central Bank.

A situation where there is a negative balance for a transaction or payment.

The slang word for the British Pound / US Dollar rate.

The monetary value of all transactions realized in a certain time period is called turnover.

The exchange rate between two currencies that do not include the US dollar is called the cross rate.

Asset

An asset is a resource with economic value that an individual, corporation, or country owns or controls with the expectation that it will provide a future benefit.

Annual Return

An annual or annualized return is a measure of how much an investment has increased on average each year, during a specific time period.

Bank Statement

A bank statement is a document (also known as an account statement) that is typically sent by the bank to the account holder every month, summarizing all the transactions of an account during the month.

Bear Market

Bear markets occur when prices in a market decline by more than 20%, often accompanied by negative investor sentiment and declining economic prospects

Blue Chip Stock

Blue chip stocks are huge companies with excellent reputations, often including some of the biggest household names.

Blockchain

Blockchain is a type of shared database that differs from a typical database in the way that it stores information; blockchains store data in blocks that are then linked together via cryptography.
• As new data comes in, it is entered into a fresh block. Once the block is filled with data, it is chained onto the previous block, which makes the data chained together in chronological order.

Bollinger Bands

Bollinger Bands® are a technical analysis tool developed by John Bollinger for generating oversold or overbought signals.
• There are three lines that compose Bollinger Bands: A simple moving average (middle band) and an upper and lower band.

Breakout

A breakout is when the price moves above a resistance level or moves below a support level.

Bull market

A bull market is a period of time in financial markets when the price of an asset or security rises continuously.
• A bubble is an economic cycle that is characterized by the rapid escalation of market value, particularly in the price of assets.
• This fast inflation is followed by a quick decrease in value, or a contraction, that is sometimes referred to as a "crash" or a "bubble burst.

Buy limit order

A buy limit order is an order to purchase an asset at or below a specified maximum price level.
• A buy limit, however, is not guaranteed to be filled if the price does not reach the limit price or moves too quickly through the price

Buying power

Buying power is the money an investor has available to purchase securities.

candle stick

Candlestick charts display the high, low, open, and closing prices of a security for a specific period. Candlesticks can be used by traders looking for chart patterns.

capital

At its core, capital is money. However, for financial and business purposes, capital is typically viewed from the perspective of current operations and investments in the future.

capital gain tax

The capital gains tax is the levy on the profit that an investor makes when an investment is sold, capital gains tax rates for the 2021 and 2022 tax years are 15% up to 40% of the profit, depending on the income of the filer, Capital gains taxes apply only to “capital assets,” which include stocks, bonds, jewelry, coin collections, and real estate.

compounding

Compounding is the process in which an asset’s earnings, from either capital gains or interest, are reinvested to generate additional earnings over time.

crypto token

The term crypto token refers to a special virtual currency token or how cryptocurrencies are denominated. These tokens represent fungible and tradable assets or utilities that reside on their own blockchains.

digital currency

Digital currency is a form of currency that is available only in digital or electronic form.

diversification

Portfolio holdings can be diversified across asset classes and within classes, and also geographically—by investing in both domestic and foreign markets.

dow 30

• The Dow 30, also known as the Dow Jones Industrial Average (DJIA), consists of 30 large, publicly-traded U.S. companies.
• The companies in the Dow are always changing, depending on their prominence within the economy.

economic calnder

The economic calendar refers to the scheduled dates of significant releases or events that may affect the movement of individual security prices or markets as a whole. Investors and traders use the economic calendar to plan trades

energy sector

The energy sector is a category of stocks that relate to producing or supplying energy.

exchange

An exchange is a marketplace where securities, commodities, derivatives and other financial instruments are traded

execution

Execution is the completion of a buy or sell order for a security.

exit strategy

An exit strategy is a contingency plan that is executed by an investor, trader, venture capitalist, or business owner to liquidate a position in a financial asset or dispose of tangible business assets once predetermined criteria for either has been met or exceeded.

expected return

The expected return is the amount of profit or loss an investor can anticipate receiving on an investment.

FAANG Stocks

In finance, the acronym "FANG" refers to the stocks of four prominent American technology companies: Meta (META) (formerly Facebook), Amazon (AMZN), Netflix (NFLX), and Alphabet (GOOG). FANG stocks are famous for the impressive growth they have shown in recent years, with each member more than doubling over the past five years.

fiat money

Fiat money is a government-issued currency that is not backed by a physical commodity, such as gold or silver, but rather by the government that issued it.

Financial Asset

A financial asset is a liquid asset that gets its value from a contractual right or ownership claim. Cash, stocks, bonds, mutual funds, and bank deposits are all are examples of financial assets

Financial Crisis

In a financial crisis, asset prices see a steep decline in value, businesses and consumers are unable to pay their debts, and financial institutions experience liquidity shortages.

Financial Market

Financial markets refer broadly to any marketplace where the trading of securities occurs, including the stock market, bond market, forex market, and derivatives market, among others.

Financing

Financing is the process of providing funds for business activities, making purchases, or investing.

Finder's Fee

A finder's fee (also known as "referral income" or "referral fee") is a commission paid to an intermediary or the facilitator of a transaction.

Fiscal Year (FY)

A fiscal year is a one-year period that companies and governments use for financial reporting and budgeting.

Flip

• "Flip" is a term that can have multiple meanings in the investment world.
• Technical traders may flip direction and change their trades based on price action.

Foreign Exchange

Foreign Exchange (forex or FX) is a global market for exchanging national currencies with one another. Foreign exchange venues comprise the largest securities market in the world by nominal value, with trillions of dollars changing hands each day.

Forex (FX)

Forex (FX) refers to the global electronic marketplace for trading international currencies and currency derivatives

Fundamental Analysis

Fundamental analysts study anything that can affect the security's value, from macroeconomic factors such as the state of the economy or country, world events and industry conditions to microeconomic factors like the effectiveness of the company's management.

Futures Contract

A futures contract is a legal agreement to buy or sell a particular commodity asset, or security at a predetermined price at a specified time in the future

Gain

investors may talk about gains whenever the market price of an asset exceeds the purchase price they paid, but unrealized gains may come and go many times before an asset is sold.

Going Public

When a company “goes public,” it is the first time the general public has the ability to buy share

Golden Rule

The golden rule, as it pertains to fiscal policy, stipulates that a government must only borrow in order to invest, and not to finance existing spending.

Government Bond

A government bond is a debt security issued by a government to support government spending and obligations.

Great Recession

The Great Recession refers to the economic downturn from 2007 to 2009 after the bursting of the U.S. housing bubble and the global financial crisis.

Hedge

Hedging is a strategy that tries to limit risks in financial assets.

Hedge Fund

Hedge funds are actively managed investment pools whose managers use a wide range of strategies, often including buying with borrowed money and trading esoteric assets, in an effort to beat average investment returns for their clients.

HODL

HODL is a term derived from a misspelling of "hold," in the context of buying and holding Bitcoin and other cryptocurrencies.

Hot IPO

The term hot IPO refers to an initial public offering with significant demand

Hyperinflation

Hyperinflation is a term to describe rapid, excessive, and out-of-control general price increases in an economy.

Income Tax

The term income tax refers to a type of tax that governments impose on income generated by businesses and individuals within their jurisdiction.

Index Futures

The term index futures refers to futures contracts that allow traders to buy or sell a contract that is derived from a financial index today to be settled at a future date.

Inflation

Inflation is the decline of purchasing power of a given currency over time.

Investment Strategy

An investment strategy is a plan designed to help individual investors achieve their financial and investment goals.

Joint Account

A joint account is a bank or brokerage account shared by two or more individuals.

Law of Demand

The law of demand is a fundamental principle of economics that states that at a higher price consumers will demand a lower quantity of a good.

Law of Supply

The law of supply says that a higher price will induce producers to supply a higher quantity to the market.

Leverage

Leverage is an investment strategy of using borrowed money—specifically, the use of various financial instruments or borrowed capital—to increase the potential return of an investment.

Limit Order

A limit order guarantees that an order is filled at or better than a specific price level.

Line Chart

A line chart is a graphical representation of an asset's historical price action that connects a series of data points with a continuous line.

Line of Credit (LOC)

A line of credit (LOC) is a preset borrowing limit that a borrower can draw on at any time that the line of credit is open.
• Types of credit lines include personal, business, and home equity, among others.

Liquid Market

Liquid markets have many available buyers and sellers where prices change in comparatively small increments.

Liquidate

To liquidate means to sell an asset for cash.

Listed

A listed company issues stock shares to the public through a stock exchange.

Lock In Profits

Locking in profits refers to the realization of previously unrealized gains accrued in a security by closing all or a portion of the holdings.

Long Position (Long)

A long—or a long position—refers to the purchase of an asset with the expectation it will increase in value—a bullish attitude

Loophole

A loophole is basically a technicality that allows one to escape violating the law through some activity.
• Common loopholes are found in taxes and avoiding taxes, as well as with political issues such as political donations.

Lucrative

Lucrative means profitable, and it can be used to describe any venture or activity that has the potential to make money.

Managed Account

A managed account is a portfolio that is owned by one investor but is supervised by a professional money manager who has been hired by that investor.

Market Capitalization

Market capitalization refers to how much a company is worth as determined by the stock market.

Market Indicators

Market indicators are quantitative in nature and seek to interpret stock or financial index data in an attempt to forecast market moves.

Market Price

The market price is the current price at which a good or service can be purchased or sold.

Market Value

Market value is the price an asset fetches in the market and is commonly used to refer to market capitalization

Nasdaq 100 Index

The Nasdaq 100 Index is a basket of the 100 largest, most actively traded U.S companies listed on the Nasdaq stock exchange.

New Paradigm

A new paradigm is a new way of thinking or doing things that replaces the old way.
• New paradigms in the stock world can mean great profit potential as investors pile into revolutionary new ideas.

Non

Farm Payroll Nonfarm payrolls is the measure of the number of workers in the U.S. excluding farm workers and workers in a handful of other job classifications.

OPEC

• The Organization of the Petroleum Exporting Countries is a cartel consisting of 13 of the world’s major oil exporting nations.
• OPEC aims to regulate the supply of oil in order to set the price on the world market.

Opening Price

The opening price is the price at which a security first trades when an exchange opens for the day.

Overall Turnover

Overall turnover is a synonym for a company’s total revenues.

Overbought

Overbought is a term used when a security is believed to be trading at a level above its intrinsic or fair value.

Overnight Position

Overnight positions refer to open trades that have not been closed or liquidated by the end of the normal trading day.

Payout

Payouts refer to the anticipated financial returns or distributions from investments or annuities.

Penny Stock

A penny stock typically refers to the stock of a small company that trades for less than $5 per share.

Pip

"Pip" is an acronym for percentage in point or price interest point.

Pre-Market

market trading is the period of trading activity that occurs before the regular market session.

Price Action

Price action is the movement of a security's price plotted over time.

Rally

A rally is a short-term and often sharp upward move in prices.
• A rally may occur for several reasons and can be found within longer-term bull or bear markets.

Rate of Return

The rate of return (RoR) is used to measure the profit or loss of an investment over time.

Realized Gain

A realized gain is when an investment is sold for a higher price than it was purchased.

Realized Loss

A realized loss is the sale of an asset below the price at which it was acquired.

Recession

A recession is a period of declining economic performance across an entire economy that lasts for several months

Relative Strength Index (RSI)

The relative strength index (RSI) is a popular momentum oscillator developed in 1978.
• The RSI provides technical traders with signals about bullish and bearish price momentum, and it is often plotted beneath the graph of an asset’s price.
• An asset is usually considered overbought when the RSI is above 70% and oversold when it is below 30%.

Resistance (Resistance Level)

Resistance, or a resistance level, is the price at which the price of an asset meets pressure on its way up by the emergence of a growing number of sellers who wish to sell at that price.

Return on Investment (ROI)

Return on investment (ROI) is a performance measure used to evaluate the efficiency or profitability of an investment or compare the efficiency of a number of different investments.

Safe Haven

Safe haven investments offer protection from market downswings.
• Precious metals, currencies, and stocks from particular sectors have been identified as safe havens in the past.
• Safe havens in one period of market volatility may react differently in another, so there is no consistent safe haven other than portfolio diversit

Scalping

Scalping is a trading strategy in which traders profit off small price changes for a stock.
• Scalping relies on technical analysis, such as candlestick charts and MACD, for execution.

Short Sale

A short sale is the sale of a stock that an investor thinks will decline in value in the future.

Short Selling

Short selling is an investment or trading strategy that speculates on the decline in a stock or other security's price.

Smart Money

Smart money is the capital that is being controlled by institutional investors, market mavens, central banks, funds, and other financial professionals.

Stock

A stock, also known as equity, is a security that represents the ownership of a fraction of the issuing corporation.

Stop Order

Stop orders are orders that are triggered when a stock moves past a specific price point.

Supply

Supply is a fundamental economic concept that describes the total amount of a specific good or service that is available to consumers.

Take-Profit Order (T/P)

A take-profit order (T/P) is a type of limit order that specifies the exact price at which to close out an open position for a profit.

Transaction Fees

transaction fee is an expense a business must pay each time it processes an electronic payment for a customer transaction.

Trend Analysis

Trend analysis tries to predict a trend, such as a bull market run, and then ride that trend until data suggests a trend reversal, such as a bull bear market.

Trendline

Trendlines indicate the best fit of some data using a single line or curve.

Technical Analysis

Technical analysis is a trading discipline employed to evaluate investments and identify trading opportunities in price trends and patterns seen on charts.
• Technical analysts believe past trading activity and price changes of a security can be valuable indicators of the security's future price movements.

Unrealized Gain

An unrealized gain is a theoretical profit that exists on paper, resulting from an investment that has not yet been sold for cash

Unrealized Loss

Unrealized losses result from assets that have decreased in value but which have not yet been sold.

U.S. Dollar Index (USDX)

The U.S. Dollar Index is used to measure the value of the dollar against a basket of six foreign currencies: the euro, Swiss franc, Japanese yen, Canadian dollar, British pound, and Swedish krona.

Validation Code

A validation code—also known as a CVV, CV2, or CVV2 code—is a series of three or four numbers located on the front or back of a credit card.

Volatility

Volatility represents how large an asset's prices swing around the mean price—it is a statistical measure of its dispersion of returns.

Watchlist

A watchlist is an inventory of ticker symbols that are monitored for potential opportunities or to track their performance

Withdrawal

A withdrawal involves removing funds from a bank account, savings plan, pension or investment portfolio. Some accounts don't function like simple bank accounts and carry fees for the early withdrawal of funds.

Zone of Resistance

A zone of resistance is the price range achieved when a security's price rises to a predicted near term high, known as a support level

Zone of Support

A zone of support is when a security's price falls to a predicted low, known as a support level.