Trading Glossary

Take a look at our list of the financial terms associated with trading and the markets.
Major Currency Pair

The US dollar is the most commonly used currency in the world and has a special place in the financial markets. There are a total of eight most frequently traded currencies in the Forex market, including the Euro, British Pound, Australian Dollar, New Zealand Dollar, US Dollar, Canadian Dollar, Japanese Yen, and Swiss Franc. The currency pairs associated with the US dollar are collectively referred to as straight-trade currency pairs. Due to the wide range of traders, straight currency pairs are generally more liquid and spreads are lower. 

Margin Account

Provide clients with additional funds to buy or sell more valuable financial assets through a broker account. This also involves the concept of leverage. Taking a general foreign exchange margin account as an example, if the broker offers 500 times the leverage, then when the client wants to go long 100,000 USDJPY, only 100,000 / 500 = 200 USD on the account is required to make this transaction. 

Margin Call

Financial terms refer to the platform issuing a notice to the trader to pay the margin when the trader's account rights and interests can no longer meet the minimum margin requirements. Due to the previous situation where notifications were often made over the phone, it was also commonly known as The Marchin Call, and is still used today. Since The Margin Call represents an account that experiences a large percentage of losses, it is often associated with account outbursts. With the improvement of regulatory regulations, many countries have introduced margin percentage closing, if the account equity is less than half of the minimum margin requirement, then the position held will be automatically closed in batches.  


A method of accounting valuation in which the price of an asset recorded in ordinary accounting is at book price and does not reflect the value in the real market; Market capitalization, on the other hand, is assessed at the price traded in the open market. It is generally used to update the price of the asset on a daily basis in highly liquid assets such as bonds or securities. 

Market Analyst

To analyze the price fluctuations and future trends of the market, analysts are generally divided into fundamental analysis and technical analysis. 

Market Capitalization

Represents the total market value of the company's outstanding shares, calculated by multiplying the total number of shares outstanding by the market value of the current share. For example, if Company A has 10 million shares outstanding and the current market price of $100 per share is $1 billion, the total market value is $1 billion. 

Market Execution

In contrast to pending orders, market execution refers to the operation of buying or selling directly from the current quotation. Your order will open a position at the latest price of the platform broker, even if it is different from the price position you see in the platform. The advantage is that orders are executed faster, but there is also the risk of slippage. 

Market Execution

Issues an order to the system to execute an order at the buy and ask price of the current market. After filling in the volume/lot size, click the Buy or Sell button and the order will be directly matched. 

Market Maker

In the financial market, an independent legal person with a certain strength and credibility acts as a franchised dealer to quote the buying and selling prices of certain commodities to the market, which is generally a two-way quotation. This is done by the difference between the buying and selling prices 

Market Risk

Refers to the risk of the market fluctuating in the opposite direction of the position, in general, the greater the volatility, the greater the market risk represented. 

Mean Reversion

A key mathematical theory in technical analysis. It means that the price of instruments will not last forever whether they rise or fall, and the phenomenon of price regression to the mean will definitely occur. "Rising too fast is the biggest bearish, falling too fast is the biggest positive." This technical analysis explains the theory of mean reversion. This theory has important cognitive significance for long-term investors, not only for price judgment, but also for various types of data, such as commodity inventory, price-to-earnings ratio, etc., with versatility. 


In the cryptocurrency market, mining refers to the acquisition of cryptocurrencies by performing proof-of-work or other similar computer algorithms, such as Bitcoin, Litecoin, and so on. 


The Momentum indicator has only one line, which subtracts the current price from the past average closing price, showing the direction and strength of the price change; The indicator is bullish momentum above the zero line and bearish momentum below the zero line. Therefore, it is often used to cross the zero line on the indicator as a long signal, and the lower zero line is a short signal.

Momentum Oscillator 

Momentum oscillators are one of the most powerful and popular tools traders use to identify market trends. By combining price momentum with time data, momentum oscillators can spot trend reversals, market reversals, and other market patterns with a high degree of accuracy. Momentum oscillators are a great tool for spotting potential trading opportunities in the market.  

Momentum Strategy

Holding a larger portfolio of winners and selling a portfolio of losers with a smaller yield is called momentum trading; It is a kind of trend following strategy, as opposed to the mean reversion strategy. Behind it is the continuity of financial commodity earnings. 

Monetary Easing

Refers to the direction of adjustment of monetary policy. "Easing", which stands for lowering interest rates or increasing the amount of quantitative easing used, often occurs in depressed economic environments. In order to boost the market, the central bank has adopted monetary easing. Monetary easing will release liquidity to the market, often triggering a depreciation of the local currency and rising inflation levels. 

Monetary Policy Committee

Composed of one vote of central bank officials with voting power, the committee is the central bank's organization that determines monetary policy. In the UK, for example, there are 9 members of the committee, and if 2 support a rate cut, 2 support maintenance, and 5 support a rate hike, the final decision is to raise the rate. The members of the Committee are periodically changed to ensure the independence of monetary policy. 

Monetary Tightening

Refers to the direction of adjustment of monetary policy. "Tightening," which represents increasing interest rates or lowering the amount of quantitative easing used, often occurs in an overheated economy. In order to control the market, the central bank adopted monetary tightening. Monetary tightening will withdraw liquidity from the market, often triggering an appreciation of the local currency and a decline in inflation. 

Money Supply

Refers to the process by which a country's or region's banking system invests money into an economy, which is the sum of the currencies held by an economy at a certain point in time. The money supply directly affects the credit supply and price level of the entire economy. The central bank's means of regulating the economy include adjusting the money supply. The money supply is often controlled by adjusting interest rates and expanding the table. 

Morning Doji Star

A potential reversal pattern in which the price has fallen. The morning star is generally used as a bullish reversal pattern. You will see a bearish candle, followed by the Morning star reversal candle and then the price will show a bullish candle in the next period. The body of this candle will be larger than the morning doji star.

Morning Star

A reversal pattern in which the price has peaked, the opposite of the morning star. The evening star Doji is generally used as a bearish reversal pattern, and the potential reversal is often stronger than that of the evening star. The body of the candle will show an equal open and close price.


Refers to the written contract between the mortgagor and the creditor, which does not transfer possession of the mortgaged assets and is only used as security for the claim. In the event that the debtor fails to perform its obligations, the creditor is entitled to a limited amount of payment in accordance with the law at a discount to the value of the property or by way of auction.

Mortgage Backed Security

It is a kind of financial asset securitization commodity, takes the real estate loan as a collateral bond, the issuance method is the bank to securitize the mortgage, the mortgage held to the credible guaranteed institutions issued, these institutions then package the mortgage as securities to resell to investors. MBS can be divided into CMBS (commercial real estate) and RMBS (residential real estate) according to the type of real estate with a mortgage.  

Moving Average

A method of technical analysis whose values represent the average transaction price over time. The main purpose is to determine whether the trend of the current price action is long or bearish. 

Moving Average Convergence / Divergence

A commonly used technical indicator, MACD uses the separation and merger of short-term and long-term exponential moving averages of the closing price to determine the timing of buying or selling. It is generally composed of a fast line and a slow line, and the fast line crossing the slow line triggers a sell signal (dead fork), while the fast line uploads a slow line triggers a buy signal (golden cross). The double-line MACD indicator also contains bars, indicating changes in trend strength. 


MetaTrader 4 is a diversified financial trading platform that is widely used by traders around the world, allowing trading in forex, indices, precious metals, commodities, etc. The MT4 platform provides traders with comprehensive price display and analysis tools, as well as powerful applications such as automated trading. Traders can use all instruments on the trading platform in one account.  


MetaTrader 5 is a diversified financial trading platform that is widely used by traders around the world, allowing trading in forex, indices, individual stocks, precious metals, commodities, etc. The MT5 platform provides traders with comprehensive price display and analysis tools, as well as powerful applications such as automated trading. Traders can use all instruments on the trading platform in one account. Compared to MT4, MT5 is more powerful and has a wider range of instruments to trade.  

Multiple Time Frame Analysis

Analyze a commodity on different timeframes, such as daily charts, four-hour charts, hourly charts to five-minute charts, and judge long-term trends, mid-term directions and short-term fluctuations through trading signals of different periods.