Trading Glossary
Take a look at our list of the financial terms associated with trading and the markets.
Take Profit
When the price of the commodity reaches the set take profit position, it will be automatically closed, generally settled with the specified profit, and the income will fall into the bag in time. Take Profit is an important part of the trading strategy, which can determine the winning rate and expected return of the strategy.
Technical Analysis
Technical analysis of market capitalization is to predict the direction, fluctuations and trends of future prices or markets by analyzing historical price changes or market behavior through the analysis of long-term observation of changes in instrument prices. Common forms of technical analysis include candlestick patterns, technical indicators, and support and resistance lines. The opposite of technical analysis is fundamental analysis.
Technical Indicator
Technical indicators are often the accumulation of experience and mathematical models combined, the use of complex calculation formulas, the inclusion of one or more instruments prices and trading volume of historical changes, to determine the future direction of prices and the strength of the trend. Each commonly used technical indicator reflects different dimensions of the market that are often not directly observable, such as market sentiment.
Thai Baht
The official currency of Thailand, issued by the Bank of Thailand. The code for Thai baht is THB.
The People's Bank of China
China's central bank is responsible for planning and executing monetary policy and supervising financial behavior and economic growth.
The strike price (options)
The strike price is the price that the buyer of an option pays to buy the option. It's the price you can sell the option for when you exercise it. The strike price is the same number as the exercise price.
There Is No Alternative
This idiomatic phrase was a slogan often used by British Prime Minister Margaret Thatcher in the 1980s. Extending to today's business world, it is often used to explain the less than ideal portfolio allocation, which usually refers to stocks. This happens mainly because other asset classes offer worse returns and therefore having to choose an investment vehicle that is relatively less bad.
Three Black Crows
A candlestick reversal pattern used to describe the possible peaking of financial commodity prices, usually with three consecutive long black Ks near the top of the price, indicating that the selling pressure above is heavy and the bears have an advantage. Investors often combine technical indicators with this candlestick pattern to comprehensively judge the future market.
Three White Soldiers
A candlestick reversal pattern used to describe the possible bottoming of financial commodity prices, usually with three consecutive long red Ks near the bottom of the price, indicating that the buying gas below is very strong and the bulls have an advantage. Investors often combine technical indicators with this candlestick pattern to comprehensively judge the future market.
TIBOR
Interbank offered rate refers to the interest rate at which banks and other financial institutions lend funds in the money market to other banks. The Tokyo Interbank Offered Rate is indicated as a call rate between financial institutions in Japan.
Tick
Refers to the minimum range of price fluctuations of financial commodities, the smallest possible increase or decline. It is a unit of price movement. Different trading instruments have different minimum price movement units. For example, if the minimum jump unit is 0.5, it can be said that the jump tick is 0.5.
Time-Weighted Average Price
Refers to an algorithm that reduces the price shock caused by the one-time influx of large orders into the market. It is usually used to disperse large orders into smaller quantities and execute at regular intervals.
Timothy Geithner
He was the U.S. President Barack Obama's Secretary of the Treasury, who served from January 26, 2009 to January 25, 2013. Geithner is an expert in dealing with financial crises. He previously studied the Asian financial crisis and participated in the development of financial rescue plans for Mexico, Indonesia, South Korea, Brazil and Thailand. In the face of the 2008 financial crisis, Geithner was one of the staunchest advocates of low interest rates within the Fed system.
Tomorrow Next
Foreign exchange transactions from the next business day after the trading day to theecond business day. Forex traders usually use this to extend spot trading without the need for delivery of the currency.
Tonga Pa'Anga
The legal tender of the Kingdom of Dongka. Panga is controlled by the National Reserve Bank of Tonga in Nuku'alofa. Pagan is not floating and is linked to a basket of currencies, including the Australian dollar, new Zealand dollar, Dollar and Japanese yen.
Top of Book
Refers to the highest bid price and the lowest ask price in the order book. For potential investors who want to sell, the higher the bid price in the entrustment book, the higher the better, and for investors who want to buy, the selling price in the entrustment book is the lower the better, so the upper the order price in the buy price is the higher the order book, the higher the order book, therefore, the buy and ask prices at the top of the order book are the best buy and sell prices at the moment.
Toshihiko Fukui
He served as the President of the 29th Bank of Japan (2003/3/20~2008/3/19) and carried out a series of important reforms to the business practices of the Bank of Japan. From Fukui's presidency and beginning in late 2003, the Bank of Japan began publishing detailed policy minutes, giving the public a glimpse into the central bank's decision-making process.
Total Supply
The total supply is the total amount of cryptocurrencies or digital tokens currently available. This refers to the total amount of all circulating or non-circulating in the market including those that are locked or reserved.
Trade Deficit
It means that a country's total export trade is less than the total import trade, resulting in a decline in foreign exchange reserves and a decrease in the demand for local currency exchange. Trade deficits often trigger depreciations of the country's currency.
Trade Surplus
It refers to the fact that a country's total export trade is greater than the total import trade, which increases the amount of foreign exchange reserves and increases the demand for local currency exchange. Trade surpluses tend to trigger an appreciation of the country's currency.
Traders Index
A short-term technical indicator published by Richard W. Arms, the concept of the formula is to divide the up-down ratio indicator by the volume ratio. Essentially, it shows when major up and downtrends will reverse by measuring the current group optimism of the current market, as the top of the market tends to be overly optimistic and the bottom of the market is always overly pessimistic. When the index is greater than 1.25, the market is often in the oversold stage, which may be a short-term buying opportunity; When the index is less than 0.8, the market comes to the overbought stage, which may be a short-term selling point.
Trading Heavy
It is used to indicate that the sellers who want to sell in the market are eager to sell, and even if a buyer tries to buy, it cannot pull up the price, resulting in the price falling and difficult to rise.
Trading Styles
Traders develop a style based on their risk tolerance, trading skills, profit targets and trading hours. There are generally four common styles: scalping short-term trading, pawn trading, swing trading and long-term trading. These four styles of trading position holding time from short to long, the required win rate is often from high to low, to make the long-term trading sum profitable.
Trading Volume
In the capital markets, volume refers to the amount of securities traded in a given time period. Some of the analytical methods in technical analysis take volume into account. For example, in the long market, the increase in the price indicates that the market has changed hands actively, and there are still high points to be expected in the future market.
Trailing Stop
A way to protect profits in a trade or investment. Taking long as an example, when investors are in a profitable state, in order to prevent the existing profits from taking back, the exit point can be placed above the entry point through the services provided by the manual or broker, and gradually move the exit point upward when the market continues to develop upwards.
Transaction Cost
The explicit and implicit costs derived from the purchase and sale of financial products. It generally includes trading commissions, transaction taxes, and bid-ask spreads.
Transaction Date
The trading day refers to the date on which a financial transaction occurred, which usually means that the ownership of a financial asset is transferred from the seller to the buyer. In some cases, the transfer of assets does not occur directly on the day of the transaction, for example, in foreign exchange transactions, after the transaction occurs, because the country and time zone between the buyer and the seller may be different from each other, in order to allow the two parties to have spare time for delivery, that is, the action of asset transfer, the actual delivery date is often set on the second business day after the trading day.
Transaction Risk
Refers to the risk of gain or loss caused by the difference between the exchange rate at the time of settlement and the exchange rate at the time of signing the contract. When the transaction occurs in the process of agreeing to trade in a foreign currency.
Treasuries
Bonds issued by the U.S. Treasury on behalf of the U.S. government are considered to be among the safest investments in the world, as U.S. bonds have a low default risk and generally have lower coupon rates than bonds issued by other countries. According to the maturity time, it can be divided into U.S. Treasury bills within 1 year, U.S. Treasury bills of 2 to 10 years, and LONG-term U.S. bonds of 10 to 30 years.
Treasury Bills
These bonds issued by the US government are one of the highest grade bonds in the world, with almost no risk of default, with a maturity date of less than 1 year, a weekly issuance frequency, and a discounted price. Investors recover the par amount on the maturity date.
Treasury Bonds
These long-term bonds issued by the US treasury are one of the highest grade bonds in the world, with almost no risk of default and a maturity date of 10 to 30 years, a monthly issuance frequency. This is an interest-paying bond, paid every 6 months, and the last interest is paid at maturity along with the sum of the par price is paid to the holder.
Treasury Notes
These medium-term bonds issued by the US bond house are one of the highest grade bonds in the world, with almost no risk of default, the maturity date is 2 years to 10 years, the issuance frequency is monthly. It is an interest-paying bond, paid every 6 months, and the last interest is paid at maturity along with the sum of the par price to the holder. This is the most important type of public bond. The 10-year U.S. Government Treasury is a common indicator used by many to observe the U.S. Treasury market, and most believe that its yield can show the market's long-term view of the overall U.S. economy.
Trend Channel
The trend channel is basically an extension of the trend line application, generally can also be referred to as the price channel, the price channel according to the slope of the different, can be divided into the positive slope of the rising channel, the negative slope of the downward channel, and slope of 0, horizontal channel. When used as a trading strategy, the lower edge of the channel tends to have a supportive effect, while the upper edge of the channel has a resistance effect.
Trend Following
Generally refers to a trading strategy or method in which when a certain skill determines the market trend, it will intervene in the direction of the trend. In essence, it is a strategy of chasing highs and killing lows, and the assumption behind it is that the momentum of the current market will continue, so that investors can buy high and sell higher, sell low and buy lower, and profit from it.
Trend Line
It is the most common type of chart type analysis, usually divided into an uptrend line and a downtrend line according to the direction drawn, and the uptrend line is at least connected to two obvious lows on the chart, and the direction is from the bottom left to the top right; The downtrend line is made up of at least two distinct highs on the chart, and the direction is from top right to bottom left.
Triangular Arbitrage
In the foreign exchange market, the process of triangular arbitrage is to ensure that the exchange rates of various currency pairs are consistent. Consistency here means that there is no room for arbitrage. Assuming that 1 US dollar can be exchanged for 1 Australian dollar and 1 Australian dollar can be exchanged for 1 British pound, then it is reasonable to say that 1 pound can be exchanged for 1 US dollar. If 1 GBP can be exchanged for more than 1 USD or less than 1 USD, risk-free arbitrage can be made through the trading of the above currency pairs. However, in practice, in the above example, although 1 pound is not equal to 1 US dollar, because the distance away from 1 US dollar is too small, there is actually no risk-free arbitrage opportunity under the consideration of transaction costs.
Trinidad, Tobago Dollars
The currency in circulation in Trinidad and Tobago, code named TTD.
Triple Bottom
A bullish reversal chart pattern in technical analysis, where three lows of almost the same price level form before the price breaks upwards through the resistance formed by recent highs. After the price breaks upwards, the upward profit target is often equal to the breakout point plus the vertical distance from the lowest point of the previous three lows to the resistance level.
Triple Exponentially Smoothed Average
A technical indicator that judges the long-term movement of a stock price by smoothing it three times on a moving average and judging the movement of this moving average. The advantage of this indicator is that it can filter the interference of short-term fluctuations, avoid the false signal defects that the average line is criticized for by people, thereby reducing the waste of transaction costs, and can also be intuitively judged by the long-term movement trend of the price, which is suitable for long-term traders or investors.
Triple Moving Average Crossover
Traders judge the general direction of the market through the relationship of three short, medium and long-term moving averages. If the short-term moving average crosses the medium-term moving average upwards, and the medium-term moving average also crosses the long-term moving average upwards, it can be concluded that the next market situation has a chance to have a wave of upward movement, and vice versa.
Triple Top
The chart pattern commonly used in technical analysis is characterized by the formation of three peaks of about the height of the price development process at a relative high point. This pattern is considered to be bearish, and once it falls below the corresponding neckline formed by these three peaks, the market is often bearish.
Triple Witching
Refers to the stock price index futures, stock price index options and stock options all three quarterly contracts expiring at the same time. Occurs four times a year, on the third Friday of March, June, September and December. Usually during the last trading session of the Three Witch Days, traders will rush to close their positions, which will greatly increase the trading volume and increase the market volatility.
True Strength Index
A type of technical indicator, developed by William Blau, that has a numerical range between -100 and 100, is a momentum oscillator, when the index is positive, the price is bullish, and vice versa. It is usually formed in the form of two lines, the TSI itself and the TSI's exponential moving average (signal line). In practice, traders may look for the following five situations in which the indicator is used: overbought, oversold, mid-line crossover, divergence and signal line crossover.
Tunisia Dinars
The currency in circulation in Tunisia, code name TND.
Turkish Liras
The legal tender of Turkey with the currency code TRY. The characters on the front of the banknotes are all Mustafa. Mustafa Kemal Atatürk was the founding father of Turkey.
Turkmenistan Manats
The currency in circulation in Turkmenistan. It was issued by the Central Bank of Turkmenistan on October 1, 1993, in order to replace the Russian ruble in circulation in the country at that time, with the currency code: TMM.
Turnover
Refers to the total amount of a certain financial instrument traded on the exchange at a certain time, for example, in one day, the seller sells 10,000 shares, and the total amount of the buyer's bid is 100,000, then the daily turnover is 100,000.
Turnover Rate
Generally used in the stock market, it refers to the proportion of the trading volume of a stock in a year to the total number of its stocks, displayed as a percentage. The turnover rate is one of the indicators that reflect the liquidity of stocks, and the higher the turnover rate, the more active the stock trading and it is a popular stock; On the contrary, if it is trading less, which belongs to the weak stock. Stocks with a high turnover rate have a strong liquidity, but the speculative risk is also relatively large. A sudden increase in turnover rates often means a reversal of the trend.
Turtle Channel
Similar to the Don Chian Channel, the highest and lowest prices in the past 20 days and 55 days are used as the upper and lower rails of the channel, and this is used as the entry standard, once the price breaks through the upper rail, it buys, and if it breaks the lower rail, it sells. The origin of the term turtle originated in 1983 when the famous commodity speculator Richard Dennis and his trading partner Eckhart debated whether traders could be cultivated by the day after tomorrow, and then there was a famous turtle experiment in the trading world.
Tuvalu Tuvalu Dollars
Currency used in Tuvalu. Between 1966 and 1976, the official currency of Tuvalu was the Australian dollar. In 1976, Tuvalu began issuing its own currency, which was circulating domestically with the Australian dollar. It’s code name TVD.
Tweezer Bottom
A tweezer bottom candlestick formation is when you have two consecutive candles with matching lows, usually found at the bottom of a potential turning point. Can be seen as a bullish signal.
Tweezer Bottom
A technical pattern that reflects the gradual increase in demand for commodities, buy orders or long positions, and the price direction changes from falling to rising. It usually occurs after a sharp correction or long-term decline in the price, consolidating at the bottom until it enters a bull market.
Tweezer Top
A technical pattern that reflects the gradual increase in the supply of goods, sell orders or short positions, and the price direction changes from rising to falling. It usually occurs after a sharp rebound or long-term rise in the price, consolidating at the top until it begins to pull back from the peak.
Tweezer Top
It is a bearish reversal pattern consisting of two candlesticks in technical analysis. It is characterized by the fact that in the process of price rise, the high price of two consecutive candlesticks appears at a relatively high level, and the two candlesticks are in order of yang K and yin K, once this pattern appears, it means that there may be a downward reversal in the short term.
Two-way Price
Provides a two-way quotation for a financial instrument, with both the current market price that investors want to buy and the price they want to sell.
Two-Way Quote
The quotation of financial commodities that provides both the price of buying and selling, and investors who want to buy instantly will be able to trade at the bid price, in the same way, investors who want to sell immediately will be able to sell at the current bid price on the market.