Trading Glossary

Take a look at our list of the financial terms associated with trading and the markets.
Value Date

In the foreign exchange market, the delivery date refers to the second business day after the establishment of the transaction between the buyer and the seller, on which the buyer and seller will exchange currencies at the exchange rate agreed upon by the original exchange. For example, if you buy €1 million on Wednesday  at an exchange rate of 1.1 and your counterparty, you have to give your counterparty $1.1 million after Friday to get €1 million.  

Vanuatu Vatu

Vanuatu's currency in circulation, code named VUV.  

Variation Margin

When the funds on the client's account are insufficient to maintain the position held, the broker will issue a notice to ask the client to make up the necessary margin, otherwise part or all of the forced liquidation will be implemented so that the client's margin meets the requirements for opening the position. 

Venezuelan Olivares

The official currency of Venezuela, code named VEB. It is named after The Latin American independence hero Simón Bolívar, it was introduced in 1879 after the currency reforms.  

Vietnamese Dong

Vietnam's monetary unit is one of the lowest-valued currencies in the world, and the currency symbol is VND, usually represented by a ‘d’ sign. At present, Vietnamese dong only has paper money, no coins.  

Voice Direct Trading

Transactions between buyers and sellers that are completed directly with each other by telephone, fax, e-mail or other information systems. For example, a company directly asks the bank by telephone about the current quotation of European and American currency pairs, and then directly finalizes the transaction.  

Voice Indirect Trading

When buyers and sellers use voice to complete the transaction, but through a third party acting as a middleman. That is, the buyers each bid to the middleman through the voice-related system, and when the price matches with each other, the middleman will return the transaction results like the buyer and the seller. 


Generally refers to the price change of financial commodities in a specific period, the larger the difference between the high and low of the price in a specific period, which means that the volatility is relatively high, and vice versa. Volatility also tends to have so-called clustering, that is, when volatility tends to be low for one period of time and high over another period of time. 

Volatility Index

The Chicago Board Options Exchange (CBOE) is compiled by the Real-Time Volatility Index, which is the first benchmark to quantify market volatility expectations. The index (VIX) is based on S&P500. The price of an index option is calculated and presented in the form of a percentage implying the S&P500 Index (SPX). In the future30 Implied volatility of days, certain factors cause panic in the market, and the traders and investors tend to buy options, which in turn leads to an increase in the price. In general, the index is above 20 when the market panics; Below 20, it means that the market is in a stable or even rising stage. 

Volcker Rule

Former Federal Reserve Chairman Paul At the heart of Volcker's proposal was to ban banks from engaging in proprietary trading, as well as to prohibit banks from owning, investing in, or initiating hedge funds and private equity funds, thereby reducing systemic risk to banks and preventing the recurrence of large and irreversible moral hazards, hoping to reform Wall Street's money game.  


In financial transactions, volume represents the quantity of a particular underlying that has been bought and sold over a certain period of time. When the target is more concerned by the trader, the more active the trading volume tends to be, so the volume can be regarded as a key indicator of the vitality and liquidity of a particular target. Volume is also often used as an auxiliary tool to test price movements, for example, when the price increases, it means that subsequent prices often have room for continuous bullishness. 

Volume Weighted Average Price

 Refers to the ratio of the value of a trade to the total number of trades in a specific time frame. For example, if 500 shares are traded at 20 yuan in 30 minutes after the opening, and 200 shares are traded at 22 yuan 30 minutes to 1 hour after the opening, VWAP is about equal to (500 * 20 + 200 * 25) / 700 = 21.429. VWAP is often used as a trading benchmark by investors such as mutual funds and pension funds who want to be as passive as possible in the trading process, and is often used to measure the efficiency of trader execution.