Take a look at our list of the financial terms associated with trading and the markets.
Refers to a trading style in which a position is held for a maximum of a few seconds or minutes. This means buying and selling positions multiple times on the same day, resulting in a meager profit. This trading style requires traders to keep an eye on the market and make trades for a long time, so the requirements for time and energy are very high, and the work intensity is also large.
Securities are a general term for a variety of tradable financial instruments, including stocks, bonds and financial derivatives. The stock exchange is the market in which these securities are bought and sold. Each country basically has its own stock exchange, such as the New York Stock Exchange, NASDAQ and US Stock Exchange in the United States, and the Australian Stock Exchange in Australia.
Refers to the securitization institution that is able to generate stable foreseeable future cash flow of assets, according to a certain common characteristics of the pool into a combination and through a certain technology to transform this portfolio into a fixed income of securities that can circulate in the capital market.
There are a large number of sell orders at a certain price point or price range, and before the sell orders are digested, it is like forming a wall to prevent the price from rising.
It means that most traders on the current market (which can refer to any commodity) want to sell or short, which means that most people think that the probability of subsequent market decline is high. In technical analysis, when the price reaches the previous high, it will often encounter the selling pressure of the trader who bought the trapped trader at that time, because he was anxious to make no profit or lose money or make a small loss, which is why the price often encountered shocks when it came to the previous high.
Selling pressure refers to when a market could be oversold and the sellers jump in, pushing the value of the instrument lower. This can also happen in a downtrend when a key support level is broken and the sellers dominate, forcing the price much lower.
For traders, they are constantly affected by their own humanity, and they are also prone to distort the judgment of the market environment. The most profound influences are greed and fear. The market itself is a collection of many traders, when the market rises or falls rapidly, traders are affected by the psychology of the flock and make the price rise or fall further, the collective mood often engulfs individual traders, for advanced traders, reading market sentiment is of great help to judge major turns.
Generally speaking, retail investors in the transaction are an often defeated, the more they fall, the more they buy, the more they rise and the more they are short, such an operation mode is one of their main characteristics, so the vast majority of retail investors cannot make long-term stable profits. The market sentiment analysis is often through the retail position to reverse thinking, assuming that 70% of the current retail investors are bullish EUR/USD, then the price of EUR/USD at this time is often in a downward trend, then cautious traders should think more about EUR/USD, and in the long run they can jump out of retail thinking.
Refers to the settlement process of a financial transaction in which buyers and sellers deliver goods or cash to each other in an agreed manner. According to the different delivery methods, it is divided into cash delivery and spot delivery. Contracts for Difference (CFDs) are cash delivery on T+0 and there is no circulation of goods between buyers and sellers.
The risk that the counterparty will not be able to fulfill the transaction on the agreed date. For example, in the foreign exchange spot market, financial institutions trade EUR/USD between each other, and if one of them cannot exchange currencies on the terms of the transaction establishment at the delivery date.
Invented by William Sharp in1966, the ratio reflects the excess return of a portfolio versus the corresponding risk, often used to measure the risk tolerance of an investment strategy. In general, the higher the Sharpe ratio, the more favored the investment strategy. However, the Sharpe ratio does not directly reflect the maximum drawdown and the degree of market volatility.
Refers to cryptocurrencies that are unknown to most people in the market and have a low total market capitalization. It is characterized by its inception or very low price of the currency, which tends to have little trading volume and no practical use.
A shooting star is a candlestick pattern that occurs when the instrument price is rising rapidly, and then quickly drops to a more normal trading level. When an instrument is rising, the price goes up very quickly, as traders want to buy the insrument. When the price begins to decline, traders want to sell, which causes the price to drop. When the price drops, traders become more fearful and begin to sell even more.
Short positions are the opposite of long positions (long/buy). When an instrument such as a stock, index or currency pair is expected to fall in the future, the trader goes short and waits for the decline to take profit. If prices rise, short positions lose. If prices fall, short positions can profit.
In financial trading, if investors expect that the price of commodities will fall and then go short, and then the price will rise upward due to various factors, the original short traders will be forced to close their positions due to losses in the part, resulting in the behavior of buying stocks at all costs, which will often make the price of commodities soar for a short time.
Short-term Economic Survey of Enterprises in Japan
The Bank of Japan surveys 10,000 companies every quarter, asking them about their confidence in the future short-term economic outlook and their views on the company's future prospects. If it is a positive number, it means that most companies are optimistic about the economic outlook, and vice versa. This is similar to PMI data.
Simple Moving Average
The SMA is the most basic method of calculating moving averages. Calculate a simple average of multiple periods, with the same weight distribution. Compared to index averages that focus on recent price changes, simple moving averages focus more on the overall trend and tend to be used for 50, 100, and 200-period moving averages.
The difference between the price at which a trader's order is established and the actual transaction price. Slippage occurs, which tend to be detrimental to the trader. For example, a trader wants to buy at the market price when it breaks through the 5-day high price of 500, but because 500 is a psychological barrier that the market pays attention to, many orders rush to enter the market at this time, so the actual price of the trader may be 502, which is the sliding price. Slippage often occurs when there is sudden geopolitical news or important economic data released.
A form of investment in which the average trader can copy their performance by observing the trading behavior of others or professional traders on the website and then using copy trades or mirror trades. Sites like this have Zulu Trade, eToro, and some CFD brokers also offer this type of service for novice traders.
Society For Worldwide Interbank Telecommunications
It is an international cooperation organization among international banks. Through its international communication network, most of the world's foreign exchange transactions are delivered through it.
South African Rand
The legal tender of South Africa, issued by the South African Reserve Bank. the currency code is ZAR. The image on the front of the banknote is currently Nelson Mandela, South Africa's first democratically elected president. He served to abolish apartheid, achieve racial reconciliation, and eradicate poverty and injustice.
South Korean Won
The legal tender of South Korea, issued by the Bank of Korea. It is code named KRW.
Special Drawing Rights
It is a special instrument for international payments created by the International Monetary Fund in 1969. When it was revised for the first time in the Agreement of the International Monetary Fund. Special drawing rights are the units of accounting for the International Monetary Fund (International Monetary Fund) and currently consist of the US dollar, the Euro, the Renminbi and the Japanese yen. SDR can only be used for settlement by the governments of Member States. This can be used to exchange SDR for freely convertible foreign currencies from other Member States, to pay balance of payments deficits or to repay IMF loans, but not directly for trade or non-trade payments.
Special Purpose Acquisition Company
SPAC itself is a shell company with no operating business, the only purpose is to raise funds through IPO, specifically to acquire promising unlisted companies, so that the acquired companies can be backdoor listed, to achieve the function of allowing private enterprises to go public immediately. Generally, SPAC must be completed within 24 months from the end of the IPO to the completion of the merger, and if the merger is not completed, it will be liquidated and dissolved and the money will be returned to the shareholders.
Profitable behavior through the appreciation/depreciation of commodity prices, with the important goal of "buying low and selling high". Speculation carries a relatively high risk compared to investment, tending to target short-term price changes rather than long-term future cash flow gains. The strategy has more profit potential and risk to take.
One of the common candlestick patterns, which is characterized by candlesticks with longer upper and lower shadows and shorter bodies. In general, the color of the solid does not mean much to the spindle. Spindle itself means that buyers and sellers in the current market are evenly matched, and neither side has the means to dominate.
Refers to the difference between the bid and the ask or offer price for the same commodity . In financial market trading, spreads are an important part of transaction costs, and smaller spreads mean smaller transaction costs. Spreads have a large impact on the overall profitability of short-term investors and almost no impact on medium- and long-term investors.
Spread betting is a popular derivative commodity that is not taxable because the trader does not actually own the underlying investment, and is purely a bet on whether the commodity of interest rises or falls, and this type of investment generally gives the investment a high leverage multiple. When it is long, the price rises, and the trader can make a profit by closing the position in time, and vice versa.
A type of cryptocurrency that maintains the stability of value through the support of stable assets. If you take the US dollar stablecoin as an example, each US dollar stablecoin must store 1 US dollar of legal tender behind it as a guarantee, so it can basically be maintained at a price equivalent to 1 US dollar. However, due to the high cost and time cost of switching between fiat and cryptocurrencies, investors in the cryptocurrency circle will use stablecoins as a medium of exchange or as a place for funds to stay when not investing in cryptocurrencies. Other types of stablecoins include stablecoins that are collateralized cryptocurrencies and stablecoins that maintain prices through algorithms.
The combination of economic stagnation and inflation generally refers to the phenomenon of economic stagnation, high prices and unemployment. Generally speaking, the economy is prosperous during periods of rising prices, and unemployment is low or falling. While periods of economic depression are characterized by falling prices. Under normal circumstances, unemployment and inflation do not occur at the same time. But the 1970s began to see a combination of economic stagnation, massive unemployment, and severe inflation. There are many causes of stagflation, which may be related to commodity supply, labor market, monetary policy and market expectations.
Taxes levied on transfers of assets are common in stocks, securities and real estate. The stamp duty rate of each country is different from the underlying asset. TradingCFDs on C FD does not involve the payment of stamp duty.
Standard & Poor's
Standard & Poor's is a world-renowned U.S. financial services firm that publishes financial research and analysis on stocks, bonds, and commodities. Headquartered in New York, USA, founded in the year 1860. S&P also provides investors with credit ratings, investment consulting and other services, and the world-renowned S&P 500 index is also from this company.
Statistics on price fluctuations, measuring the breadth of price distribution in the average. The higher the standard deviation, the greater the price volatility, which also means the higher the investment risk.
The pound is an alias because in British history, £1 weighed as much as sterling silver.
The stochastic indicator is one of the dynamic indicators commonly used in technical analysis, reflecting the change in price momentum through the position of the high and low price ranges and the closing price. The indicator values are divided into three areas of 0-20 oversold area, 20-80 central area and 80-100 overbought area. The indicator contains two lines, which are the fast and slow lines. Often the dead fork of the overbought area of the fast and slow line is used as a bearish signal, and the golden cross of the oversold area is used as a bullish signal.
A stock is a marketable security. Since companies need long-term financing, in addition to loans, they are raising funds from investors. Investors are also referred to as shareholders and share in the profits of the company's operations with stock dividends/dividends.
The Swedish krona is an alias that originated in Stockholm, the capital of Sweden.
Stop & Limit
Two ways to trade pending orders. Stop refers to breakout follow trades, and Limit refers to retracement rebound trades. For example, Sell Stop is a short pending order, when the price of the instrument falls below the specified position, the pending order is triggered, and the short order at that position will enter the market. For example, buy limit is a long pending order, when the price falls back to the rebound position, it will automatically enter the long order.
A tool to limit losses, when the price of the commodity reaches the set stop loss position, it will be automatically closed, usually settled at a specified loss, to avoid excessive losses. Stop loss is an important part of a trading strategy and can determine the risk exposure of the strategy portfolio. By setting a stop loss, the risk can be controlled.
There are two types of stop loss orders, one is to protect the original entry position, limiting the losses that occur when the market trend is unfavorable to the trader to a certain range of stop orders. The other is to use a stop loss order as a way to enter the market, usually the type of order that breakout traders like to use. For example, the price oscillates between 100 and 105, and the trader believes that the price may develop upwards after that, but in the case of uncertainty, a buy stop entry order of 105.5 is set to confirm that the market is indeed developing upwards, which means that when the price breaks through 105.5, the order will be converted into a market order to execute a buy for the trader.
When the value of the trader's margin relative to the open position is lower than the ratio specified by the broker. When this occurs, the broker will start closing out the trades automatically. Generally speaking, this situation occurs when the price movement is significantly unfavorable to the trader, or the trader opens the position using too much leverage.
In the financial sector, strategic analysts need to pay attention to overall economic trends, changes in the industrial environment, and individual corporate earnings in this case. The trading concept of the strategic analyst can sometimes be used as one of the sources of trading opportunities for the average trader, as well as to assist banks or affiliated companies in formulating relevant trading strategies and asset allocations, and sometimes for retail customers.
Supply And Demand
It is a basic theory of economics that emphasizes that market prices are determined by market supply and demand. Supply refers to the number of producers in a specific market in a certain period of time, the producer is willing and able to supply, generally speaking, the positive slope curve, the higher the price, the producer is willing to provide more quantity to earn more profits; Demand refers to the amount that consumers are willing to consume and can consume in a certain market in a certain period of time, generally speaking, a negative slope curve, that is, when the price is higher, the number of consumers will consume less under other conditions. If this concept is extended to the field of investment, the rise and fall of a certain financial asset is also dominated by supply and demand theory. For example, Apple announced its entry into the electric vehicle market, people think that Apple will benefit from future profits, so the demand for Apple stock will rise further, and under other conditions, Apple will rise to meet the corresponding supply and demand environment.
Generally refers to the financial asset price fell to a certain position when there will be buyers stationed, which is generally determined by market supply and demand, when the price comes to the support position, the buyer's desire to buy in the market is higher than the seller's desire to sell, so the price will be pulled up.
Support and Resistance
Support and resistance are the most commonly used concepts in the technical analysis of financial transactions, they usually appear in pairs, because the market is always up and down, there are various factors behind the price to rise and fall, the most important reason is caused by market supply and demand, when the market in a certain price range encounters selling pressure but can not fall, it can be said that there is support in this range; On the contrary, when the market repeatedly attacks a certain price range without success, it can be said that there is resistance in this range.
Swap rates are the interest that a trader pays to borrow money to buy the foreign currency and sell the other currency. This is a great way to make money when the foreign and domestic currency moves in opposite directions. When the U.S. dollar is strong and the British pound is weak, a market maker may offer a swap rate to buy a British Pound and sell a U.S. Dollar.
Sweden's fiat currency, issued by the National Bank of Sweden. It has been in Sweden since 1873 and is coded SEK. The Swedish krona is also one of the six major constituent factors of the dollar index, with a weight of 4.2%.
A speculative trading strategy. In order to obtain profits in the price fluctuations of the financial market, traders are willing to hold assets for 3 to 10 days, so the duration of swing trading is higher than intraday trading, lower than the holding date of up to several months or even the number of long-term trades.
Swiss National Bank
Since 20 June 1907, the Swiss National Bank has been carrying out the work of the nation's central bank, dominating Swiss monetary policy, with the aim of maintaining price stability and ensuring the prosperity of the country.
In the world of forex, on the one hand, Swissy represents the alias of the Swiss franc, but in trading it is more often referred to the currency pair USD/SWISS FRANC.
A common price pattern, which represents a stalemate between bulls and bears, has led to lower and lower highs and higher lows over the past period of time. Once a trader finds this price pattern, he will often follow the direction of the breakout to follow the entry.