Trading
Glossary

A change to an existing trade or position, such as modifying stop levels, position size, or contract terms.

Authority for the Financial Markets - The Netherlands' financial regulatory authority.

The total combined risk exposure across all open positions and instruments in a trading portfolio.

Autorité des Marchés Financiers - France's financial markets regulator.

Australian Securities and Investments Commission - Australia's top-tier financial regulator.

The price at which a seller is willing to sell a security. Also known as the offer price.

Forex slang for the Australian Dollar (AUD) or AUD/USD currency pair.

Federal Financial Supervisory Authority - Germany's top-tier financial regulator.

Japan's central bank, responsible for monetary policy, interest rate decisions, and maintaining financial system stability.

A predetermined price level in barrier options that, when reached, activates or cancels the option contract.

A trader who expects prices to fall, or a market experiencing declining prices.

The price at which a buyer is willing to purchase a security.

The difference between the highest price a buyer will pay (bid) and the lowest price a seller will accept (offer/ask).

The first few digits of an exchange rate that dealers omit when quoting prices. For EUR/USD at 1.1050, the big figure is 1.10.

The first and largest cryptocurrency by market capitalisation, created in 2009 as a decentralised digital currency.

A measurement unit for oil production and consumption. Key metric in energy markets that affects commodity-linked currencies.

Non-standard settlement dates in forex that don't match typical market conventions.

A fraudulent brokerage that doesn't execute real trades, instead betting against its own clients.

A trader who expects prices to rise, or a market experiencing rising prices.

The act of exchanging one currency for another. In forex, you always buy one currency while simultaneously selling another.

Forex slang for the GBP/USD currency pair, one of the oldest and most traded pairs.

The standard exchange rate displayed by banks for retail customers, typically less favourable than interbank rates.

Central Bank of Ireland - Ireland's financial services regulator under EU framework.

A national institution that manages monetary policy, interest rates, currency supply, and financial system stability.

An agreement among European central banks to coordinate and limit gold sales to prevent market destabilisation.

Commodity Futures Trading Commission - US regulator for derivatives and forex.

A trader who relies on charts and technical analysis patterns to predict price movements rather than fundamentals.

The largest US options exchange and creator of the VIX volatility index, a key barometer of market fear.

Forex slang for the EUR/GBP currency pair, named after the Channel Tunnel.

Cayman Islands Monetary Authority - Offshore regulator with moderate oversight.

Money that has been fully processed and is available for trading or withdrawal.

A trade that has been exited by executing an equal and opposite transaction. Profit or loss is realised when a position is closed.

The process of settling an open position by executing an offsetting trade, ending exposure to price movement.

Comisión Nacional del Mercado de Valores - Spain's securities market regulator.

A document or electronic message confirming the details of a completed trade, including amount, price, and settlement date.

Commissione Nazionale per le Società e la Borsa - Italy's securities regulator.

A derivative product that allows you to speculate on price movements without owning the underlying asset.

A benchmark index tracking a basket of commodity prices, widely used as an inflation and economic health indicator.

Two currencies quoted against each other, showing how much of one currency is needed to buy the other.

Cyprus Securities and Exchange Commission - Popular EU regulator for forex brokers.

Buying and selling financial instruments within the same trading day, closing all positions before market close.

A person or firm that acts as a principal in transactions, buying and selling financial instruments from their own inventory.

A system or market operating without a central authority. The forex market and cryptocurrency networks are both decentralised.

Dubai Financial Services Authority - Regulator for the Dubai International Financial Centre.

A series of lower highs and lower lows in price, indicating sustained bearish momentum.

The decline from a peak to a trough in account value, measuring the loss from highest to lowest point.

An electronic system that matches buy and sell orders directly between participants instead of routing them through a dealing desk.

A technical analysis theory that markets move in predictable wave patterns of five impulse waves and three corrective waves.

Developing economies with growing financial markets, higher yields, and elevated risk. Key currencies include ZAR, TRY, BRL, and MXN.

The total value of a trading account including the balance plus or minus any unrealized profits or losses.

European Securities and Markets Authority - EU-wide regulator setting rules for all member states.

Investment funds traded on stock exchanges that track an index, commodity, or basket of assets.

An automated trading program on the MetaTrader platform that executes trades based on pre-programmed rules.

The last date on which an option or futures contract can be exercised or traded before it becomes void.

A moving average that gives more weight to recent prices, making it more responsive to new data than an SMA.

Financial Conduct Authority - UK's top-tier financial regulator, globally respected.

Forex slang for the EUR/USD currency pair, the most traded pair in the world.

Tradeable assets including currencies, stocks, bonds, commodities, options, and derivatives.

Swiss Financial Market Supervisory Authority - Switzerland's top-tier financial regulator.

Technology-driven innovation in financial services, including mobile trading apps, robo-advisors, and blockchain systems.

Financial Markets Authority - New Zealand's financial services regulator.

The global market for trading currencies. The world's largest financial market.

A contract to exchange currencies at a pre-agreed rate on a specific future date, used to hedge against currency risk.

The pips added to or subtracted from the spot rate to calculate the forward rate, derived from interest rate differentials.

The future date when a forward forex contract will settle and currencies will be exchanged.

Financial Services Authority of Seychelles - Offshore regulator with minimal oversight.

Financial Services Commission of the British Virgin Islands - Offshore regulator.

Financial Services Commission of Mauritius - Offshore regulator in the Indian Ocean.

Financial Sector Conduct Authority - South Africa's financial markets regulator.

The ten most heavily traded and liquid currencies in the forex market.

An order type that remains active until it is filled or manually cancelled by the trader, with no automatic expiration.

Slang term for the USD/JPY currency pair, used by forex traders.

The total value of goods and services produced within a country during a specific period. A key economic indicator affecting currencies.

A reversal chart pattern with three peaks where the middle peak (head) is higher than the two outer peaks (shoulders).

A position taken to offset potential losses from another position, reducing overall risk exposure.

Using the highest and lowest prices over a given period to determine trading range and potential breakout levels.

International Financial Services Commission of Belize - Offshore regulator with light oversight.

A non-binding price quote that shows an approximate market rate but cannot be traded on directly.

The rate at which prices for goods and services rise over time, eroding purchasing power and driving central bank policy.

The first sale of a company's shares to the public on a stock exchange.

The difference in benchmark interest rates between two currencies, driving forward points, swap rates, and carry trades.

A charting method showing open, high, low, and close prices that reveals market sentiment and potential reversals.

Japan Financial Services Agency - Japan's strict financial regulator with very low leverage limits.

The JSE is Africa's largest stock exchange and the 19th largest in the world by market capitalisation, offering equities, bonds, and derivatives markets from Johannesburg, South Africa.

Forex slang for the New Zealand Dollar (NZD) or NZD/USD currency pair.

The bid side of a two-way price quote. Selling "on the left" means selling at the bid price.

Using borrowed capital to increase the potential return of an investment. Amplifies both gains and losses.

A financial obligation or debt owed by an individual or entity.

Buying an asset with the expectation that its price will rise.

Forex slang for the Canadian Dollar (CAD) or USD/CAD currency pair.

A standardized trading unit. In forex, a standard lot is 100,000 units of the base currency.

The collateral required to open and maintain a leveraged trading position.

A broker's demand for additional funds when account equity falls below required margin levels.

The total market value of a company or cryptocurrency, calculated by multiplying the current price by the number of shares or tokens in circulation.

A firm or individual that quotes both buy and sell prices to provide liquidity in financial markets.

The current price at which a currency pair can be bought or sold for immediate delivery (T+2 in forex).

Monetary Authority of Singapore - Singapore's central bank and top-tier financial regulator.

A cryptocurrency created as a joke or based on internet memes, often with no utility but high speculation.

The most widely used retail trading platform, available as MT4 and MT5, supporting charting, indicators, and automated trading.

Malta Financial Services Authority - EU regulator popular with fintech and gaming companies.

The average of the bid and ask prices, used as a reference point rather than an executable price.

The EU regulation governing investment services and financial markets across member states, setting standards for broker transparency and client protection.

Mio is the standard financial abbreviation for million, widely used in forex dealing rooms, interbank markets, and institutional trading.

March, June, September, December: the four months when futures and options contracts typically expire.

A smoothed line on a chart that calculates the average price over a set number of periods, filtering out short-term noise.

A momentum indicator showing the relationship between two EMAs, used to identify trend direction and strength.

The difference between long and short positions in a particular instrument or market.

National Futures Association - US self-regulatory organization for futures and forex.

A time window during which a forward contract can be settled at the holder's discretion, rather than on a single fixed date.

A forex transaction for delivery on any date other than spot, not part of a swap.

The smallest price movement in a currency pair. Typically the fourth decimal place (0.0001).

A unit of price movement. In forex, often synonymous with a pip; in indices, the minimum price increment.

A monetary policy where a central bank buys assets to inject money into the economy, lower interest rates, and stimulate growth.

A displayed price showing the current bid and ask for a financial instrument.

The second currency in a currency pair, showing how much of it is needed to buy one unit of the base currency.

A sustained period of rising prices in a market or asset.

A momentum oscillator measuring the speed and magnitude of price changes on a 0-100 scale. Above 70 is overbought, below 30 is oversold.

Australia's central bank responsible for monetary policy, currency stability, and the Australian Dollar.

A price level where selling pressure tends to overcome buying pressure, preventing further price increases.

The ask/offer side of a two-way price quote. Buying "on the right" means buying at the ask price.

Securities Commission of The Bahamas - Offshore regulator in the Caribbean.

Securities and Exchange Board of India - India's securities market regulator.

Securities and Exchange Commission - US regulator for securities markets.

Securities and Futures Commission - Hong Kong's top-tier financial regulator.

Selling an asset with the expectation that its price will fall, allowing you to buy it back cheaper.

The arithmetic mean of prices over a set number of periods, where each data point carries equal weight.

A transaction for immediate delivery, typically settling within two business days (T+2) in forex.

The difference between the bid and ask price. A key trading cost in forex and CFD markets.

An order to automatically close a position at a specified price to limit potential losses.

A price level where buying pressure tends to overcome selling pressure, preventing further price declines.

St. Vincent and the Grenadines Financial Services Authority - Minimal offshore regulation.

Switzerland's central bank, known for the 2015 EUR/CHF floor removal that caused historic market disruption.

Forex slang for the Swiss Franc (CHF) or USD/CHF currency pair.

An order to automatically close a position at a specified price to lock in profits.

Analyzing price charts and indicators to forecast future price movements based on historical patterns.

A US Treasury report measuring cross-border capital flows into and out of US financial assets.

A price quote showing both the bid and ask prices simultaneously, allowing immediate buy or sell execution.

A trade executed at a price higher than the previous trade.

A market condition characterized by rising prices, with higher highs and higher lows over time.

The date on which a financial transaction settles and funds are actually exchanged.

A transaction that settles on the next business day (T+1), one day before standard spot settlement.

Vanuatu Financial Services Commission - Offshore regulator with minimal oversight.

A measure of how much and how quickly prices change, indicating market uncertainty and risk.

The total number of shares, contracts, or lots traded during a given period.

A rapid price movement in one direction followed by a sharp reversal, often triggering stop losses on both sides.

A currency pair that doesn't include the US dollar, calculated from two USD pairs.

The income return on an investment, typically expressed as an annual percentage based on cost or current value.

A market situation where one participant's gain equals another's loss, with total gains minus losses equaling zero.