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Trading glossary A–Z
Short, plain-English definitions of the terms you'll meet when trading forex and CFDs, each with an example and a link to the tool that puts it to work. General education, not investment advice.
305 terms
A
Account currencyAccount currency is the currency used to report a trading account’s balance, equity, and financial results. Profits, losses, or charges arising in another currency may be converted into it using the provider’s applicable conversion method.Account historyAccount history is the platform’s record of past account activity, such as executed trades, deposits, withdrawals, and charges. Available details and reporting periods vary by platform, and open positions are typically shown separately.Accumulation/distribution lineThe accumulation/distribution line is a cumulative indicator that weights volume by the close's position within each period's high-low range. Closes above the midpoint add to the line, while closes below subtract. It does not directly measure capital entering or leaving a market, and available volume data affects interpretation.Advance-decline lineThe advance-decline line is a cumulative market-breadth indicator that adds the number of advancing stocks minus declining stocks to its previous value each session. Stocks with unchanged prices contribute nothing; differences between the line and an index can highlight changes in market participation.Algorithmic tradingAlgorithmic trading uses computer programs to generate, submit or manage orders according to predefined rules. These rules may respond to prices, timing or other inputs; automation does not eliminate market risk, execution problems or programming errors.AlphaAlpha is the portion of return not explained by a specified benchmark-based risk model. Positive alpha indicates performance above the model's expectation, but the estimate depends on the model, measurement period and costs, and does not by itself prove skill.Anti-money launderingAnti-money laundering (AML) refers to laws, controls and procedures intended to prevent and detect the movement or concealment of criminal proceeds through the financial system. Financial firms may verify customers, monitor transactions and report suspicious activity as required by applicable rules.ArbitrageArbitrage involves coordinated purchases and sales intended to capture a price discrepancy in the same asset or economically equivalent exposures. A theoretical arbitrage locks in a profit without market risk, but practical attempts can face execution delays, transaction costs, funding constraints, and settlement risk.Aroon indicatorThe Aroon indicator measures how recently a market recorded its highest high and lowest low within a chosen lookback period. Its Aroon Up and Aroon Down lines range from 0 to 100 and help describe trend direction and persistence, rather than the size of price changes.Ascending triangleAn ascending triangle forms when price makes higher lows beneath a broadly horizontal resistance level, narrowing the trading range. It is often associated with an upward breakout, particularly during an uptrend, although price can break either boundary or produce a false breakout.AskThe ask (or offer) is the price at which you can buy. It is the higher of the two prices quoted.Auction marketAn auction market brings together buyers’ bids and sellers’ offers under rules that determine which orders trade and at what price. Trading may occur continuously or at scheduled auctions, helping establish prices from available supply and demand.Average directional indexAverage directional index (ADX) measures trend strength rather than direction, using smoothed comparisons of upward and downward price movement. It ranges from zero to 100 and is often displayed alongside positive and negative directional indicators, which help distinguish the direction of movement.Average true rangeAverage true range (ATR) measures volatility by smoothing true range over a chosen period. True range is the greatest of the current high minus low, the absolute high minus previous close, or the absolute low minus previous close. ATR does not indicate price direction.Awesome oscillatorThe Awesome Oscillator is a momentum indicator calculated by subtracting a 34-period simple moving average of bar midpoints from a 5-period average of those midpoints. Each midpoint is the average of a bar's high and low, and the result is usually displayed as a histogram around zero.
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BacktestingBacktesting applies a trading strategy's rules to historical data to estimate how it would have performed under specified assumptions. Results can be distorted by poor data, unrealistic trading costs or using information that would not have been available at the time.BackwardationBackwardation is a market condition in which nearer-dated futures contracts trade above later-dated contracts, or the spot price exceeds a futures price. It can reflect tight immediate supply or a benefit from holding physical inventory, but does not guarantee that prices will fall.BalanceBalance is the money in your account from deposits, withdrawals and closed trades. It doesn't include open positions.Balance of paymentsThe balance of payments is a statistical record of transactions between an economy's residents and non-residents over a period. It comprises the current, capital and financial accounts; double-entry accounting balances the system in principle, while published data include a statistical discrepancy.Base currencyThe base currency is the first currency in a pair. One lot is measured in units of the base currency.BasisBasis is the difference between a commodity's spot price and the price of a specified futures contract. It is commonly calculated as spot minus futures, although conventions vary; location, quality and delivery timing can all affect the comparison.BetaBeta estimates how sensitive an asset's or portfolio's returns are to a chosen benchmark's returns. A beta of one indicates similar estimated sensitivity, while negative beta indicates an opposite relationship; beta depends on the benchmark, sample period and model.BidThe bid is the price at which you can sell. It is the lower of the two prices quoted.Bollinger BandsBollinger Bands consist of a moving average and upper and lower bands placed a chosen number of standard deviations away from it. The bands widen as measured price variability increases and narrow as it decreases; touching a band does not by itself establish a reversal or breakout.Bond yieldBond yield measures the return implied by a bond’s price and payments. Current yield compares annual coupon income with market price, while yield to maturity also accounts for repayment at maturity. For fixed-rate bonds, prices and yields generally move in opposite directions.Bracket orderA bracket order combines an entry order with linked profit-taking and stop-loss exit orders. Once the entry executes, the exits become active according to platform rules, with execution of one normally cancelling the other. A stop-loss does not guarantee its specified execution price.BreakoutA breakout occurs when price moves beyond an identified support level, resistance level or chart boundary. It may indicate a change in trading conditions, but the move can fail; analysts use different criteria to distinguish a sustained break from a brief crossing.
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Calmar ratioThe Calmar ratio compares annualised compounded return with the absolute size of the maximum drawdown over a specified measurement window. It describes return relative to the largest observed peak-to-trough decline, but does not capture every aspect of risk.CandlestickA candlestick shows the open, high, low and close price for one period on a chart. The body covers open to close; the wicks show the high and low.Carry tradeA carry trade seeks to earn the financing-rate difference by funding exposure in a lower-interest-rate currency and holding a higher-interest-rate currency or asset. Exchange-rate losses and funding changes can outweigh the income; forex CFD swap charges also depend on product terms.Cash settlementCash settlement closes out a contract's settlement obligations through a monetary payment calculated under its rules, rather than delivery of the underlying asset. The calculation typically uses a specified reference price and contract size, with any previous settlement payments taken into account.Central bankA central bank is a public institution responsible for monetary policy within a country or currency area. Depending on its mandate, it may also issue currency, manage reserves, support payment systems, supervise banks and provide emergency liquidity.CFD (contract for difference)A CFD is a contract to exchange the difference in an asset's price between opening and closing a trade. You can trade rising or falling prices without owning the asset, usually with leverage.Chaikin money flowChaikin money flow (CMF) weights each period's volume by where the close lies within its high-low range, then divides the sum by total volume over a chosen window. Positive readings suggest accumulation pressure; negative readings suggest distribution pressure. Results depend on the volume data available.Chart profileA chart profile is a saved workspace containing a group of charts and their arrangements. Depending on the platform, it can retain instruments, timeframes, and chart settings, rather than only the appearance of an individual chart.Chart templateA chart template is a saved collection of settings that can be applied to a chart. It commonly stores visual preferences and indicator configurations, allowing a similar analytical layout to be reused across instruments.Circuit breakerA circuit breaker is a rule-based mechanism that temporarily pauses or restricts trading when specified price movements occur. Its thresholds, scope and duration depend on the venue and instrument; it does not guarantee an orderly reopening or prevent further losses.ClearingClearing is the process of checking trade details and establishing the obligations of buyers and sellers before settlement. It can include offsetting obligations and managing collateral; in centrally cleared markets, a clearing house becomes the counterparty to both sides.CommissionA commission is a fixed charge per lot traded, usually on accounts that offer lower or raw spreads.CommodityA commodity is a raw material such as gold, silver, oil or natural gas. Commodities can be traded as CFDs without taking physical delivery.Commodity channel indexCommodity channel index (CCI) measures how far typical price is from its moving average, scaled by mean absolute deviation and a constant. Despite its name, it can be applied to different markets. High or low readings show relative price extremes, not certain reversals.Concentration riskConcentration risk arises when a large share of exposure depends on one asset, sector, currency, counterparty, or common market driver. Positions that appear separate can still create concentration if they tend to react similarly to the same events.ConsolidationConsolidation is a period when price moves within a relatively contained range rather than maintaining a clear directional trend. It may follow a strong move or occur between trends, and it does not determine the direction of the next breakout.Consumer confidenceConsumer confidence describes households' views about economic conditions and their own financial prospects, usually measured through surveys. Confidence indices can provide clues about spending intentions, but survey sentiment does not always translate into actual purchases.ContangoContango describes a futures market where prices for later delivery are higher than those for nearer delivery, often alongside futures prices above spot. Storage, financing and other carrying costs can contribute to this pattern; it does not guarantee that the future spot price will rise.Contract sizeContract size is the amount of the underlying asset in one lot. It decides how much a price move is worth per lot.Convenience yieldConvenience yield is the implied non-cash benefit of holding a physical commodity rather than a contract for future delivery. Having inventory available can help a business meet unexpected demand or avoid production interruptions, especially when supplies are tight.CopperCopper is an industrial metal widely used in electrical wiring, construction and manufacturing because it conducts electricity and heat effectively. Prices are influenced by industrial demand, mine output, refining capacity, recycling and inventories; economic growth is only one of several drivers.CorrelationCorrelation measures how closely two variables, such as asset returns, move together. The commonly used Pearson coefficient ranges from minus one to plus one and measures linear relationships; zero correlation does not rule out other relationships, and correlations can change over time.Cost of carryCost of carry is the expense of financing and holding an asset over time, including costs such as interest, storage and insurance. In commodity pricing, these costs help explain differences between spot and futures prices, alongside the benefits of holding physical inventory.Counterparty riskCounterparty risk is the possibility that the other party to a financial contract fails to meet its obligations, such as making a payment or completing settlement. Exposure depends on the contract, collateral and clearing arrangements; safeguards can reduce risk without necessarily eliminating it.CPI (consumer price index)The consumer price index measures changes in the prices of a basket of everyday goods and services. It is the most watched measure of inflation.Credit ratingA credit rating is an agency’s opinion of an issuer’s or debt instrument’s creditworthiness, usually expressed through a letter-based scale. It assesses repayment risk but is not a guarantee, and ratings can change as financial or economic conditions develop.Cross pairA cross pair is a currency pair that doesn't include the US dollar.Crude oilCrude oil is unrefined petroleum extracted from underground reservoirs and processed into fuels and other products. Benchmarks such as Brent and West Texas Intermediate represent different specifications and delivery arrangements; prices respond to supply, demand, inventories and geopolitical developments.Cup and handleA cup and handle consists of a rounded decline and recovery, followed by a smaller pullback or consolidation near the prior high. It is commonly interpreted as a bullish continuation pattern when price breaks above the handle's resistance, but further gains are not guaranteed.Currency conversionCurrency conversion is the exchange of an amount in one currency for an amount in another using an exchange rate. The amount received can also depend on any conversion fees or markup applied to that rate.Currency interventionCurrency intervention occurs when a central bank or government buys or sells currencies to influence an exchange rate. Authorities may intervene to address disorderly trading or support an exchange-rate policy, but the intended effect is not guaranteed.Currency pairForex is quoted in pairs: the price shows how much of the second (quote) currency buys one unit of the first (base) currency.Currency pegA currency peg is an exchange-rate arrangement that links a currency's value to another currency or a basket of currencies. Authorities may use currency intervention and monetary policy to maintain the fixed rate or an allowed trading band.Current accountThe current account records a country's transactions with the rest of the world in goods, services, primary income and secondary income. It includes trade, investment income and transfers such as remittances, making it broader than the trade balance.Custom indicatorA custom indicator is a user-created or third-party analytical tool that calculates and displays information from price or other market data. In MetaTrader, it may show chart lines, symbols or alerts, but it does not itself execute trades.
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Dark poolA dark pool is a trading venue or facility where orders are not displayed publicly before execution. Often used for equities, it can limit disclosure of trading intentions, although reporting obligations vary and execution or reduced market impact is not guaranteed.Day orderA day order remains valid only for the trading day or session defined by the venue or platform. Any unfilled quantity expires at that cutoff, which may differ from midnight in the trader's local time.Day tradingDay trading is a style in which positions are opened and closed within the same trading day rather than held overnight. It can involve short or extended intraday trades, with results affected by price movements, transaction costs and execution conditions.Dealing deskA dealing desk is a team or function that manages quotes, trades, and trading risk at a financial firm. In retail forex and CFDs, it may handle client orders internally, act as counterparty, or arrange external hedging.DeflationDeflation is a sustained decline in the general price level of goods and services. It increases money’s purchasing power but can raise the inflation-adjusted burden of existing debt and accompany weak spending or economic activity.Delivery monthThe delivery month is the calendar month designated by a futures contract for delivery of the underlying asset. Contract rules specify the actual delivery window and procedures, so the month label does not necessarily identify a single delivery date.Demo accountA demo account lets you practise trading with virtual money on live prices, without risking real funds.DepositA deposit is money paid into a trading account through an accepted funding method. Once credited, it increases the account balance; processing times, currency conversion, verification requirements, and any charges depend on the provider and payment method.Descending triangleA descending triangle forms when price makes lower highs above a broadly horizontal support level. It is often interpreted as a bearish continuation pattern during a downtrend, but an upward breakout or a failed downward breakout is also possible.DevaluationDevaluation is an official reduction in a currency's value under a fixed or managed exchange-rate arrangement. It differs from depreciation, which is a market-driven fall, and can make imports more expensive in domestic-currency terms.Direct market accessDirect market access, or DMA, allows a client to submit orders to a trading venue's order book through an intermediary's infrastructure. Access remains subject to permissions, risk checks, and venue rules; it does not eliminate the intermediary.Discount rateIn central banking, the discount rate is the interest rate charged on certain central-bank loans to eligible banks, with terminology varying by jurisdiction. In valuation, the same term means the rate used to convert future cash flows into present value.DisinflationDisinflation is a slowdown in the rate at which the general price level rises. Prices are still increasing when inflation remains positive, but more slowly than before; this differs from deflation, where the general price level falls.DivergenceDivergence occurs when price and a technical indicator show different patterns, such as price making a higher high while momentum makes a lower high. It may suggest changing momentum, but it does not confirm a reversal or establish when one might occur.DiversificationDiversification means spreading exposure across assets, markets or strategies rather than relying on a single source of returns. It can reduce concentration risk when exposures behave differently, but cannot eliminate losses, and relationships may become more closely aligned during market stress.DividendA dividend is a distribution a company makes to eligible shareholders, usually in cash but sometimes as additional shares. Dividends are not guaranteed and may be reduced or cancelled; holding a share CFD does not confer shareholder ownership.Dividend yieldDividend yield expresses annual dividends per share as a percentage of the current share price. It may use past payments or forecast dividends, so the basis matters; it does not measure total return or guarantee future income.DojiA doji is a candlestick whose opening and closing prices are equal or very close, leaving little or no real body. It can reflect indecision or a temporary balance between buyers and sellers, but its meaning depends on the surrounding trend and subsequent price action.Donchian channelA Donchian channel plots the highest high and lowest low over a chosen number of periods, usually with a midpoint line. It shows the recent price range and is commonly used to study breakouts, although moves beyond earlier boundaries can fail.Double bottomA double bottom is a chart pattern in which price reaches two similar lows separated by a rebound, usually after a downward trend. A subsequent break above the intervening high is commonly interpreted as a possible bullish reversal, though it does not ensure further gains.Double topA double top is a chart pattern in which price reaches two similar highs separated by a decline, usually after an upward trend. A subsequent break below the intervening low is commonly interpreted as a possible bearish reversal, though the pattern can fail.DovishDovish describes a monetary-policy stance or communication that favours easier financial conditions to support employment or economic activity. It often suggests lower interest rates or additional monetary support, although its meaning depends on the economic context.DrawdownDrawdown is the fall in an account or strategy from a peak to a later low, usually shown as a percentage.
E
Earnings per shareEarnings per share, or EPS, measures profit attributable to ordinary shareholders divided by the weighted-average number of ordinary shares outstanding during a period. Diluted EPS also reflects potentially dilutive securities, such as certain options or convertible debt.Earnings reportAn earnings report presents a company's financial performance for a reporting period, typically including revenue, profit and earnings per share. It may also include management commentary and forecasts, with publication frequency and required disclosures varying by market.Economic calendarAn economic calendar lists upcoming data releases and central-bank events, with forecasts and previous readings.Electronic communication networkAn electronic communication network, or ECN, is an automated system that brings together buy and sell interest from participants. Its matching rules, access arrangements, and displayed liquidity vary; it does not necessarily show all orders in the wider market.Elliott wave theoryElliott wave theory interprets market movements as recurring wave patterns associated with investor psychology. Its basic model describes five-wave motive sequences and three-wave corrections at different scales, but assigning wave counts is subjective and does not reliably establish future price movements.Engulfing patternAn engulfing pattern consists of two candles where the second candle’s real body fully covers the first candle’s body and has the opposite direction. A bullish version can appear after a decline and a bearish version after a rise; neither guarantees a reversal, and the shadows need not be engulfed.Equal-weighted indexAn equal-weighted index assigns the same weight to every constituent at scheduled rebalancing points. Between rebalances, weights drift as share prices change, so constituents do not necessarily retain equal weights throughout the period.EquityEquity is your account balance plus or minus the profit or loss on open positions — what the account would be worth if everything were closed now.Evening starAn evening star is a three-candle potential bearish reversal pattern following a rise: a long rising candle, a small-bodied candle, and a falling candle closing well into the first body. Classical versions include a gap around the middle candle, but the pattern does not guarantee further declines.Ex-dividend dateThe ex-dividend date is the date from which a share trades without entitlement to a specified upcoming dividend. Buyers on or after that date generally do not receive that payment; exact timing depends on exchange rules and settlement arrangements.ExchangeAn exchange is an organised marketplace where instruments trade under established rules. It typically defines trading procedures and admission requirements, while clearing and settlement may involve separate organisations. Exchanges can use order books, auctions, or other trading methods.Exchange-traded fundAn exchange-traded fund (ETF) is an investment fund whose shares trade on an exchange during market hours. It typically holds a portfolio of assets or uses derivatives to track an index or pursue a stated strategy; its trading price can differ from its net asset value.Exotic pairAn exotic pair combines a major currency with the currency of a smaller or emerging economy. They usually have wider spreads and lower liquidity.ExpectancyExpectancy is the average profit or loss expected per trade under a specified set of assumptions. It combines each outcome's probability with its average payoff; estimates based on past trades do not guarantee future results, and trading costs affect the calculation.Expected shortfallExpected shortfall estimates the average loss in the worst portion of outcomes, defined by a chosen confidence level and time horizon. Unlike value at risk, it describes the severity of tail losses, although it remains sensitive to modelling assumptions and data.Expert Advisor (EA)An Expert Advisor is a program that runs in MetaTrader and can analyse the market and place trades automatically according to its rules.Expiry dateThe expiry date is the date on which a derivative contract reaches the end of its contractual life. Contract rules determine when trading stops and how exercise, settlement or delivery obligations are handled; the last trading date may differ from the expiry date.
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Falling wedgeA falling wedge forms when price moves downward between converging trendlines, with the upper boundary falling more steeply than the lower boundary. It is commonly interpreted as a bullish reversal or continuation pattern, depending on context, although price may continue falling.False breakoutA false breakout occurs when price moves beyond a recognised level or chart boundary but then returns inside it without sustaining the move. It can occur above resistance or below support, and identifying it depends partly on the timeframe and criteria used.Fibonacci extensionFibonacci extension is a charting tool that projects potential price levels beyond an earlier move, often using ratios such as 127.2% and 161.8%. A common method measures an initial move and projects a multiple of its length from the end of a pullback; these projections are not forecasts.Fibonacci retracementFibonacci retracement is a charting tool that marks potential support or resistance within a previous price move using ratios such as 38.2% and 61.8%. Traders use these levels to study pullbacks, but prices do not have to pause or reverse there.Fill-or-kill orderA fill-or-kill order must execute immediately for its entire requested quantity at an acceptable price, or be cancelled completely. It does not allow partial execution or leave an unfilled balance waiting in the market.First notice dayFirst notice day is the earliest day on which a delivery notice may be issued under a physically delivered futures contract's rules. A holder of a long position may become subject to delivery assignment, and brokers may set earlier position-closing deadlines.Fiscal policyFiscal policy is the use of government spending and taxation to influence economic activity and public finances. Changes can affect demand, employment and inflation, while their effects depend on financing, timing and broader economic conditions.FlagA flag is a short consolidation within roughly parallel boundaries after a sharp price move, often called the flagpole. The consolidation usually slopes against the preceding move or runs sideways, and is commonly interpreted as a potential continuation pattern rather than a guaranteed outcome.Forward contractA forward contract is an agreement between two parties to buy or sell an asset at an agreed price on a future date. It is usually traded over the counter with customised terms and carries the risk that the other party fails to meet its obligations.Forward guidanceForward guidance is communication by a central bank about the likely future direction of monetary policy. It can depend on economic conditions or specified timeframes and aims to shape expectations, rather than necessarily committing the bank to a fixed course.Forward testingForward testing evaluates a strategy on data not used to develop or optimise it, often through demo trading as new prices arrive. Some platforms also use the term for testing on a reserved, later portion of historical data; neither approach guarantees future results.Free floatFree float is the portion of a company's outstanding shares considered available for public trading, excluding restricted shares and certain closely held or strategic holdings. Index providers may apply different rules when determining which holdings qualify.Free marginFree margin is the money in your account available to open new positions: equity minus the margin already in use.Fundamental analysisFundamental analysis looks at economic data, interest rates, earnings and news to judge where prices might go.Futures contractA futures contract is a standardised agreement traded on an exchange to buy or sell a specified asset at an agreed price for a future delivery or settlement date. Futures generally require margin and are marked to market daily, with physical delivery or cash settlement determined by contract rules.
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GapA gap is a jump in price with no trading in between, often after the weekend or a major announcement.GasolineGasoline is a refined petroleum fuel used primarily in road vehicles. Wholesale prices are influenced by crude oil costs, refinery output, inventories, seasonal fuel specifications and driving demand; retail pump prices also include taxes, distribution costs and retail margins.GoldGold is a precious metal used in jewellery, investment holdings and some industrial applications. Its price is influenced by factors including real interest rates, currency movements and investment demand; its reputation as a safe haven does not prevent price declines.Good-till-cancelled orderA good-till-cancelled order remains active until it is filled or cancelled, subject to the provider's rules. Despite its name, it may have a maximum lifespan or be removed after specified events rather than remain open indefinitely.Grain futuresGrain futures are standardised exchange-traded contracts to buy or sell a specified quantity and quality of grain, such as wheat or corn, for a future delivery period. They support hedging and price discovery, with settlement and delivery obligations determined by each contract's rules.Gross domestic productGross domestic product, or GDP, measures the value of final goods and services produced within an economy during a specified period. Nominal GDP uses current prices, while real GDP adjusts for price changes to help distinguish output growth from inflation.
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HammerA hammer is a candlestick that appears after a decline, with a small body near the top of its range, a long lower shadow, and little or no upper shadow. It suggests rejection of lower prices and a possible bullish reversal, not a certain recovery.Hanging manA hanging man is a candlestick that appears after an advance, with a small body near the top of its range and a long lower shadow. Its shape resembles a hammer, but its location suggests possible weakness after a rally rather than a bullish reversal.HaramiA harami is a two-candle pattern in which a small second real body sits within the previous candle’s larger real body. After a rise or decline, it can indicate hesitation or a possible reversal, but the pattern alone does not determine the next price direction.HawkishHawkish describes a monetary-policy stance or communication that places greater emphasis on controlling inflation. It often signals support for higher interest rates, keeping rates elevated, or reducing monetary support, depending on economic conditions.Head and shouldersHead and shoulders is a chart pattern with three peaks, where the middle peak is higher than the other two. The intervening lows define a neckline; a break below it is commonly interpreted as a possible bearish reversal, not a guaranteed outcome.Heating oilHeating oil is a refined petroleum fuel used mainly to heat buildings. Related futures benchmarks may specify ultra-low-sulfur diesel rather than traditional heating oil, so contract specifications matter; prices reflect crude costs, refining conditions, inventories and seasonal demand.HedgingHedging means opening a position intended to offset the risk of another position or exposure. It can reduce some risks but adds costs and does not remove risk completely.Heikin-Ashi chartA Heikin-Ashi chart uses calculated candles to smooth price movement rather than displaying ordinary open, high, low, and close values. Its close averages the current period’s four prices, while its open averages the previous Heikin-Ashi open and close; displayed candle values may differ from executable market prices.
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Iceberg orderAn iceberg order displays only part of its total quantity in an order book, while the rest stays hidden. As the visible portion executes, more quantity can be displayed under venue-specific rules. This limits visible size but does not eliminate market impact.Ichimoku cloudIchimoku cloud is a charting system combining five lines to describe trend, momentum, and potential support and resistance. Two lines form a shaded cloud plotted ahead of current prices, while another is plotted behind. These offsets organise historical calculations rather than predict future prices.Immediate-or-cancel orderAn immediate-or-cancel order executes whatever quantity is immediately available at acceptable prices and cancels any remainder. Unlike a fill-or-kill order, it permits partial execution, but no unfilled quantity stays active afterward.Inactivity feeAn inactivity fee is a charge some providers apply when an account has no qualifying activity for a specified period. Whether it applies, what counts as activity and the amount charged depend on the provider's account terms.Index constituentAn index constituent is an individual security or other component included in an index under the provider's selection rules. Each constituent has a weight that determines how much its price movement influences the index.Index rebalancingIndex rebalancing adjusts constituent weights to keep an index aligned with its methodology, usually on a published schedule. Changes to membership are often called reconstitution, although providers may combine membership reviews and weight adjustments.Industrial productionIndustrial production measures changes in the volume of output from industrial sectors, typically manufacturing, mining and utilities. It is commonly published as an index and helps indicate changes in economic activity, although its coverage varies by country.InflationInflation is a sustained increase in the general price level of goods and services, reducing money’s purchasing power. It is usually measured through changes in a price index, rather than the price of a single product.Initial jobless claimsInitial jobless claims count new applications for unemployment benefits during a reporting period. The widely followed US release is weekly and provides a timely indicator of layoffs, but it does not measure all unemployed people or guarantee that applicants receive benefits.Initial public offeringAn initial public offering (IPO) is the first offering of a company's shares to the public, usually alongside a stock exchange listing. It can raise capital for the company, allow existing shareholders to sell shares, or both.Interest-rate decisionAn interest-rate decision is a central bank's announcement on its policy rate. Rates and guidance about future rates are major drivers of currencies.Internal transferAn internal transfer moves money between eligible accounts within the same provider without sending it to an external bank or payment service. Transfers may be subject to ownership checks, available-funds restrictions, and currency conversion when account currencies differ.Inventory reportAn inventory report publishes information about stored quantities of a commodity, often showing changes over a reporting period. Traders compare the figures with expectations and seasonal patterns to assess supply and demand, but coverage, timing and revisions can limit interpretation.Inverted hammerAn inverted hammer is a candlestick with a small body near the bottom of its range, a long upper shadow, and little or no lower shadow. After a decline, it may suggest weakening selling pressure, but it does not establish that a reversal will follow.Investor passwordAn investor password provides read-only access to a trading account on platforms that support it. It generally allows viewing positions and account history without placing or modifying trades, but still exposes potentially sensitive financial information.
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Kelly criterionThe Kelly criterion is a mathematical method for determining the fraction of capital to stake to maximise expected long-term logarithmic wealth growth, given assumed probabilities and payoffs. Its results are highly sensitive to estimation errors and can involve substantial drawdowns; it does not guarantee profits.Keltner channelA Keltner channel is a volatility-based indicator with bands above and below a central moving average. Modern versions usually use an exponential moving average and a multiple of average true range, so the channel widens or narrows as measured volatility changes.Know your customerKnow your customer (KYC) is the process financial firms use to identify customers and verify their identities. It may include collecting information about a customer's circumstances and account purpose, with requirements varying by jurisdiction.
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Labour force participation rateThe labour force participation rate measures the share of a specified working-age population that is either employed or unemployed and actively seeking work. It helps distinguish changes in unemployment caused by hiring from changes caused by people entering or leaving the labour force.LeverageLeverage lets you control a larger position with a smaller deposit, called margin. It magnifies both profits and losses, so losses can exceed what you expected very quickly.Limit orderA limit order is a pending order to buy below, or sell above, the current price. It fills only at your price or better.LiquidityLiquidity describes how easily an instrument can be bought or sold without moving the price. Higher liquidity usually means tighter spreads.Liquidity providerA liquidity provider supplies prices or trading interest that other participants can trade against. Banks, specialist firms, and other participants may perform this role, with available prices and quantities varying by instrument, market conditions, and trading arrangement.Liquidity riskLiquidity risk is the possibility that a position cannot be opened or closed promptly at a reasonable price because there are too few willing buyers or sellers. It can lead to wider spreads, partial fills, or greater slippage, especially during market disruptions.Long positionGoing long means buying an instrument in the expectation that its price will rise.LotA lot is the unit used to size a trade. In forex one standard lot is 100,000 units of the base currency; for other instruments the lot size is set by the contract size.
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Major pairsThe major pairs are the most traded currency pairs, each including the US dollar: EURUSD, GBPUSD, USDJPY, USDCHF, AUDUSD, USDCAD and NZDUSD.MarginMargin is the amount of money set aside from your account to open and keep a leveraged position. It is not a fee, but it can't be used for other trades while the position is open.Margin callA margin call is a warning that your margin level has fallen to a set threshold because open positions are losing. It means you should add funds or reduce positions to avoid a stop out.Margin levelMargin level is equity divided by used margin, shown as a percentage. Brokers use it to decide when to warn you or close positions.Market breadthMarket breadth measures how widely a market move is shared across its constituent securities. Indicators may compare advancing and declining stocks, trading volume, or the number of stocks above a moving average, helping distinguish broad participation from moves driven by a few large companies.Market capitalisationMarket capitalisation is the total market value of a company's outstanding shares, calculated by multiplying its share price by the number of shares outstanding. It measures equity market value, not the company's total value including debt.Market depthMarket depth shows the quantities available to buy and sell at different price levels within a particular order book or liquidity feed. It represents visible liquidity, not necessarily the entire market, and displayed quantities can change before an order executes.Market impactMarket impact is the effect that an order or trading activity has on an instrument's price. It depends on factors such as order size, available liquidity, and execution speed, and can contribute to differences between expected and actual execution prices.Market makerA market maker quotes prices at which it is willing to buy and sell an instrument, acting as a counterparty to trades. It may earn the spread while managing inventory and price risk; quoting obligations vary by market.Market orderA market order buys or sells immediately at the best available price.Market riskMarket risk is the possibility of losses caused by changes in market prices or rates, including currencies, equities, commodities, and interest rates. It affects open positions even when orders execute normally and counterparties meet their obligations.Market WatchMarket Watch is a panel in MetaTrader platforms that lists available instruments and their quotes, including bid and ask prices. It provides access to functions such as opening charts, viewing instrument specifications and starting an order, depending on platform settings.Market-capitalisation-weighted indexA market-capitalisation-weighted index assigns each constituent a weight based on its market value relative to the combined market value of all constituents. Many such indices use free-float-adjusted values, and some apply caps to limit individual weights.MarubozuA marubozu is a candlestick with a long real body and no shadows, or only very small ones. A bullish version opens near the low and closes near the high; a bearish version does the reverse, showing directional pressure during that period rather than predicting the next one.Mean reversionMean reversion is the idea that a price or other market measure may move back toward a reference average after deviating from it. Trading approaches based on this idea depend on the chosen reference and can fail when trends persist or market conditions change.Micro lotA micro lot is 0.01 lots: 1,000 units of the base currency, one hundredth of a standard lot.Mini lotA mini lot is 0.10 lots: 10,000 units of the base currency, one tenth of a standard lot.Momentum indicatorA momentum indicator compares the current price with an earlier price to describe the pace of movement. Common versions show either the price difference or a price ratio multiplied by 100, so the neutral level depends on the formula used by the charting platform.Monetary policyMonetary policy comprises central bank actions aimed at influencing financial conditions to pursue objectives such as price stability and, in some jurisdictions, employment. Tools include policy interest rates, asset transactions and communication, with effects that unfold over time.Money flow indexMoney flow index (MFI) is a zero-to-100 oscillator combining typical price and volume to compare positive and negative money flow over a chosen period. Typical price averages the high, low, and close. Extreme readings are not certain reversal signals, and tick-volume inputs represent activity rather than actual traded quantities.Morning starA morning star is a three-candle potential bullish reversal pattern following a decline: a long falling candle, a small-bodied candle, and a rising candle closing well into the first body. Classical versions include a gap around the middle candle, though gaps are less common in continuously traded forex markets.Moving averageA moving average smooths a price series by recalculating an average over a rolling window. A simple moving average weights observations equally, while an exponential moving average gives more weight to recent prices; both lag price changes and do not predict future direction with certainty.Moving average convergence divergenceMoving average convergence divergence, or MACD, measures the difference between a shorter-period and a longer-period exponential moving average. A signal line smooths that difference, and a histogram shows MACD minus the signal line; crossovers and divergence describe changing momentum but can produce misleading signals.MT5 (MetaTrader 5)MetaTrader 5 is a widely used trading platform for forex and CFDs, with charts, indicators, order types and automated trading, on desktop, web and mobile.
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Natural gasNatural gas is a fossil fuel composed mainly of methane, used for heating, electricity generation and industrial processes. Prices can vary substantially across regional markets because weather, storage levels, pipeline capacity and liquefied natural gas infrastructure influence supply and demand.NavigatorNavigator is a panel in MetaTrader platforms used to access accounts, indicators, Expert Advisors and scripts. It helps users organise platform resources and attach supported tools to charts; it is separate from the panel displaying market quotes.Negative balance protectionNegative balance protection means that if a fast market move takes your account below zero, the negative balance is reset, so you can't lose more than your deposit.Netting accountA netting account combines trades in the same instrument into a single net position. A trade in the opposite direction reduces, closes, or reverses that position, rather than creating a separate opposing position as a hedging account may allow.Non-Farm Payrolls (NFP)Non-Farm Payrolls is a monthly US report on the number of jobs added outside farming. It is one of the most market-moving data releases.
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On-balance volumeOn-balance volume (OBV) is a cumulative indicator that adds a period's volume when the close rises and subtracts it when the close falls; unchanged closes leave it unchanged. It compares volume patterns with price trends. Where only tick volume is available, it reflects price-update activity rather than traded quantities.One-cancels-the-other orderA one-cancels-the-other order links two orders so that execution of one cancels the other. It can pair alternative entries or exit orders. Cancellation timing and treatment of partial fills depend on the platform's rules.Open interestOpen interest is the number of outstanding derivatives contracts, such as futures or options, that have not been closed or expired. Each contract is counted once despite having both a buyer and a seller, unlike volume, which measures trading activity.Open market operationsOpen market operations are central-bank purchases or sales of securities, including temporary transactions such as repurchase agreements, used to manage banking-system reserves and short-term interest rates. Purchases generally add reserves, while sales generally remove them.OptimisationOptimisation is the process of testing different strategy settings to identify combinations that perform best against a chosen measure. Strong historical results may reflect overfitting, where settings match past data closely but do not work similarly on unseen data.Options contractAn options contract gives its buyer the right, but not the obligation, to buy or sell an underlying asset at a specified strike price within a defined period or at expiry. The buyer pays a premium, while the seller must fulfil the contract if assigned.Order bookAn order book lists outstanding buy and sell orders for an instrument, usually grouped by price and quantity. It shows available interest on a particular venue or feed, not necessarily across the whole market.Order executionOrder execution is the process of carrying out an instruction to buy or sell a financial instrument. The executed price, quantity and timing depend on the order's conditions, available liquidity and the broker's or venue's execution arrangements.Order flowOrder flow is the stream of buy and sell orders reaching a market or trading firm, including their size, timing, and direction. Analysing it can reveal trading pressure, but any view may cover only part of the market.Order ticketAn order ticket is the platform window or form used to enter and submit a trading instruction. It typically includes the instrument, trade size, direction, and order type, with additional fields for prices or protective orders where supported.Over-the-counter marketAn over-the-counter, or OTC, market is one where participants trade through dealer networks or bilateral arrangements rather than a centralised exchange. Prices, contract terms, transparency, and counterparty arrangements can differ; OTC trading is not necessarily unregulated.
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Parabolic SARParabolic SAR, short for stop and reverse, plots dots above or below price to track a trend and indicate possible reversals. Its calculation uses recent price extremes and an acceleration factor. Dots can switch sides frequently in sideways markets, producing misleading reversal signals.Partial fillA partial fill occurs when only part of an order's requested quantity executes. The remaining quantity may stay pending or be cancelled, depending on the order instructions. Separate fills can occur at different prices.PennantA pennant is a brief consolidation with converging boundaries that follows a sharp price move. Unlike a flag, its range forms a small triangle; it is commonly viewed as a potential continuation pattern, although the eventual breakout may fail or move against the preceding trend.Personal consumption expenditures price indexThe personal consumption expenditures price index, or PCE price index, measures changes in prices for goods and services consumed by US households, including purchases made on their behalf. The Federal Reserve uses headline PCE inflation for its inflation target; core PCE excludes food and energy.Physical deliveryPhysical delivery is settlement of a contract through transfer of the underlying asset rather than only a cash payment based on price differences. Delivery may involve warehouse receipts, title documents or account transfers, depending on the asset and contract rules.PipA pip is the standard unit of price movement in a currency pair. For most pairs it is the fourth decimal place (0.0001); for pairs quoted in Japanese yen it is the second decimal place (0.01).PipetteA pipette is one tenth of a pip — the extra decimal place most platforms show in forex prices.Pivot pointsPivot points are calculated reference levels used to outline potential support and resistance for a subsequent period. The classic central pivot averages the previous period's high, low, and close, with additional levels derived from those values. Other formulas exist, and price need not react at any level.Portfolio rebalancingPortfolio rebalancing adjusts holdings to bring portfolio weights back toward specified targets after market movements or cash flows change them. It may involve trades or redirected contributions and can generate transaction costs, taxes and changes in exposure.Position sizingPosition sizing is choosing how many lots to trade so that hitting your stop loss costs a set share of your account.Position tradingPosition trading is a longer-term style in which positions may remain open for weeks, months or longer. It focuses on broad market trends or fundamental developments, while leveraged forex and CFD positions can accumulate financing costs and experience substantial fluctuations.Post-only orderA post-only order is an instruction intended to add liquidity by resting in an order book rather than executing immediately against existing orders. If it would execute immediately, the venue rejects, cancels or adjusts it according to its rules.Price actionPrice action is the movement of market prices over time and an approach to analysing that movement directly. Traders examine features such as highs, lows, candlesticks and support or resistance, sometimes with few indicators; interpretations remain subjective and patterns can fail.Price channelA price channel is a chart formation bounded by roughly parallel lines marking upper and lower areas of price movement. Channels can slope upward, slope downward or remain horizontal, but their boundaries are analytical references rather than guaranteed turning points.Price discoveryPrice discovery is the process through which trading interest and transactions establish market prices. It reflects participants' information, expectations, and willingness to trade, but the resulting price is not necessarily a measure of an instrument's underlying value.Price improvementPrice improvement occurs when an order executes at a more favourable price than its specified or reference price. For a buyer, this means a lower price; for a seller, a higher price. It is possible under some execution arrangements but is not guaranteed.Price-to-earnings ratioThe price-to-earnings ratio, or P/E, divides a company's share price by its earnings per share. It can use historical or forecast earnings and is generally not meaningful when earnings are negative; comparisons also depend on accounting methods and business context.Price-weighted indexA price-weighted index gives greater weight to shares with higher prices, regardless of the companies' market capitalisations. Its level is calculated using a divisor that is adjusted for events such as stock splits to preserve continuity.Producer price indexA producer price index, or PPI, tracks changes in the selling prices received by domestic producers for covered goods and services. It measures inflation at the producer level rather than consumer checkout prices; coverage and methodology vary by country.Profit factorProfit factor is total profit from winning trades divided by the absolute total loss from losing trades over a defined sample. A value above one means recorded profits exceed recorded losses, but interpretation depends on cost treatment and sample quality.PullbackA pullback is a temporary move against the direction of an established trend, such as a decline within an upward trend. Whether it is temporary or the beginning of a reversal cannot be known with certainty while it is developing.Purchasing managers' indexA purchasing managers’ index, or PMI, is a survey-based indicator of business conditions, often covering manufacturing or services. Readings above 50 generally signal expansion compared with the previous month, while readings below 50 signal contraction; the distance from 50 is not a percentage growth rate.Push notificationA push notification is a message sent by a platform or service to a linked device, commonly a mobile phone. It may report alerts or account events, but delivery depends on settings, connectivity, and service availability.
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Quantitative easingQuantitative easing is a monetary policy tool in which a central bank purchases assets, typically government bonds, using newly created central bank reserves. It aims to ease financial conditions, often by lowering longer-term yields, but its effects are uncertain.Quantitative tighteningQuantitative tightening is the reduction of a central bank's asset holdings by allowing securities to mature without full reinvestment or by selling them. It reverses part of earlier balance-sheet expansion and can tighten financial conditions, although market effects vary.Quote currencyThe quote currency is the second currency in a pair. Prices, pip values and profits are first calculated in it.
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Rate of changeRate of change (ROC) measures the percentage difference between the current price and the price a specified number of periods earlier. Positive values mean price has risen over that interval; negative values mean it has fallen. The chosen lookback affects sensitivity to recent movements.Real interest rateA real interest rate adjusts a nominal interest rate for inflation, showing the change in purchasing power associated with borrowing or saving. It is commonly approximated by subtracting inflation from the nominal rate, using either expected or realised inflation.RecessionA recession is a significant, broad-based decline in economic activity lasting more than a few months. Two consecutive quarters of falling real GDP are a common shorthand, but official assessments may also consider employment, income, production, and spending.RectangleA rectangle is a chart pattern in which price moves between broadly horizontal support and resistance levels, repeatedly testing both boundaries. It describes a trading range that may end with continuation or reversal of the preceding trend, and apparent breakouts can fail.Reduce-only orderA reduce-only order can decrease or close an existing position but cannot increase exposure or open a position in the opposite direction. Platforms may resize, reject or cancel quantities that would exceed the position available to reduce.Relative strength indexThe relative strength index, or RSI, is a momentum oscillator that compares smoothed gains with smoothed losses over a chosen period, producing values from 0 to 100. Readings above 70 or below 30 are commonly labelled overbought or oversold, but neither condition necessarily implies an imminent reversal.Renko chartA Renko chart displays bricks when price moves by a specified amount, rather than drawing a candle for every fixed time interval. Brick size may be fixed or volatility-based, and reversal rules vary; the chart filters smaller movements but can hide timing and intrabrick price changes.RequoteA requote occurs when a broker offers a different price instead of executing a request at the originally quoted price. Under execution methods that use requotes, the trader can accept or reject the new quote; it is not an executed trade by itself.Reserve currencyA reserve currency is a foreign currency held by central banks and other monetary authorities as part of their reserves. It is typically widely accepted for international payments and investment, and reserves may support currency intervention or external payment needs.Reserve requirementA reserve requirement is a rule specifying the minimum reserves banks must hold against certain deposit liabilities. Eligible reserves and calculation methods vary by jurisdiction, and some systems have no positive requirement. Changes can affect bank liquidity and lending conditions.Retail salesRetail sales measure sales by retailers over a specified period and provide an indicator of consumer demand for goods. Coverage varies by country, and headline figures are often not adjusted for price changes, so higher sales values do not necessarily mean more goods were purchased.Rising wedgeA rising wedge forms when price moves upward between converging trendlines, with the lower boundary rising more steeply than the upper boundary. It is commonly interpreted as a bearish reversal or continuation pattern, depending on the preceding trend, but a downward break is not assured.Risk of ruinRisk of ruin is the probability that trading capital falls to a specified level at which trading cannot continue. It depends on position sizes, the pattern of gains and losses, and modelling assumptions; ruin need not mean losing the entire balance.Risk–reward ratioThe risk–reward ratio compares how much a trade could lose (to the stop loss) with how much it aims to make (to the take profit).Roll yieldRoll yield is the component of a futures investment's return associated with contract prices converging toward spot as exposure is rolled between expiries. For long exposure, backwardation generally supports positive roll yield and contango negative roll yield, assuming other conditions remain unchanged.Rounding bottomA rounding bottom is a broad, curved price formation in which a decline gradually slows, stabilises, and turns into a recovery. It is commonly interpreted as a possible longer-term bullish reversal, but identifying the curve is subjective and does not establish that an uptrend will persist.
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Safe havenA safe haven is an asset investors tend to buy during market stress because it is expected to hold its value. Safe havens can still fall in value.ScalpingScalping is a trading style involving very short holding periods, often seconds or minutes, with trades seeking small price movements. Frequent transactions make spreads, commissions and execution quality particularly important, and small intended gains do not imply small potential losses.Scenario analysisScenario analysis evaluates possible outcomes under a defined set of assumptions about market or economic conditions. Scenarios may be favourable, neutral, or adverse and can combine several changes; they are conditional illustrations, not forecasts or assigned probabilities unless explicitly stated.ScriptA script is a program designed to perform a specific task when launched in a trading platform. In MetaTrader, scripts generally run once per launch rather than continuously responding to market updates, and may carry out administrative or trading actions.Sector rotationSector rotation is a shift in investment exposure from one industry sector to another, often linked to changing expectations for growth, interest rates, or earnings. It can describe portfolio decisions or broader market patterns, but sectors do not follow a fixed or reliable performance sequence.Segregated accountA segregated account is an account used to hold client money separately from a firm’s own funds under applicable rules. Segregation does not prevent trading losses or guarantee full recovery if the firm fails; protections depend on the jurisdiction and arrangements.Session overlapA session overlap is when two major trading sessions are open at once, often the busiest hours of the day.SettlementSettlement is the completion of a trade’s obligations through the transfer of cash, assets or both. The timing and method depend on the instrument and market; cash-settled contracts involve a payment rather than delivery of the underlying asset.Share buybackA share buyback occurs when a company repurchases its own shares, either in the market or through another permitted process. Repurchased shares may be cancelled or held in treasury, potentially reducing shares outstanding and affecting per-share measures without guaranteeing a price increase.Sharpe ratioThe Sharpe ratio measures return above a risk-free rate relative to the volatility of those excess returns. It divides average excess return by its standard deviation, using consistent periods; both upward and downward fluctuations count as volatility.Shooting starA shooting star is a candlestick that appears after an advance, with a small body near the bottom of its range, a long upper shadow, and little or no lower shadow. It suggests rejection of higher prices and a possible bearish reversal, but does not guarantee a decline.Short positionGoing short means selling an instrument in the expectation that its price will fall, then buying it back later.SilverSilver is a precious metal with both investment demand and extensive industrial uses, including electronics and solar technology. Its price reflects manufacturing conditions, mine supply, recycling and investor sentiment, so it can behave differently from gold.SlippageSlippage is the difference between the price you requested and the price your order is filled at. It is most common in fast markets or around major news.Soft commoditiesSoft commodities are agricultural products typically grown rather than mined, with common market examples including coffee, cocoa, sugar and cotton. The category's boundaries vary, and grains are often treated separately; weather, crop disease and harvest conditions can strongly influence supply.Soft landingA soft landing occurs when economic growth slows enough to ease inflation without entering a recession or causing a sharp deterioration in employment. It is often discussed as a possible outcome of tighter monetary policy, not a guaranteed result.Sortino ratioThe Sortino ratio measures return above a chosen target relative to downside deviation, which captures returns falling below that target. Unlike the Sharpe ratio, it does not penalise upward fluctuations; results depend on the target and calculation convention used.Source of fundsSource of funds means the origin of the money used for a particular deposit or transaction, such as salary, savings or sale proceeds. Financial firms may request evidence of that origin as part of their financial crime checks.Sovereign debtSovereign debt is money owed by a national government, typically through bonds, bills, or loans. It may be denominated in domestic or foreign currency, and its risk depends on factors including repayment capacity, currency exposure, and legal terms.Spot marketA spot market is a market where assets are traded at current prices for prompt delivery or settlement, rather than a specified future delivery date. Settlement timing varies by asset and market convention; spot does not always mean immediate settlement.SpreadThe spread is the difference between the buy (ask) and sell (bid) price. It is a cost built into every trade and can widen when markets are quiet or volatile.StagflationStagflation describes a combination of high inflation, weak or stagnant economic growth, and elevated unemployment. It creates a policy challenge because measures intended to reduce inflation may further weaken activity, while measures supporting growth may add price pressure.Standard lotA standard lot is 1.00 lot: 100,000 units of the base currency in forex.Stochastic oscillatorThe stochastic oscillator measures where the closing price lies within the high-low range over a chosen period, usually on a scale from 0 to 100. Its main line, %K, is commonly paired with a smoothed line, %D; high or low readings do not guarantee reversals.Stock indexA stock index tracks the combined value of a group of shares, giving a view of a market or sector in one number.Stock splitA stock split increases the number of shares outstanding while proportionally reducing the price per share, without by itself changing shareholders' ownership percentages or the company's market capitalisation. A reverse split combines shares and has the opposite mechanical effect.Stop lossA stop loss is an order that closes a position automatically at a set price to limit the loss on a trade.Stop orderA stop order is a pending order to buy above, or sell below, the current price, used to enter when price breaks through a level.Stop outA stop out happens when your margin level falls to the broker's stop-out level and open positions are closed automatically, starting with the largest loss, to stop further losses.Stop-limit orderA stop-limit order activates a limit order when a specified stop price is reached. The limit sets the worst acceptable execution price, but the order may remain unfilled if the market moves beyond that price. Availability and trigger rules vary by platform.Straight-through processingStraight-through processing, or STP, means handling trade information electronically through stages such as order routing, execution, and settlement without routine manual re-entry. In brokerage, the label alone does not establish who acts as counterparty or how every order is handled.Strategy TesterStrategy Tester is a MetaTrader tool for evaluating automated trading strategies using historical price data and specified testing assumptions. It can also compare parameter settings through optimisation, but simulated results depend on data quality and may differ from live trading.Stress testingStress testing examines how a position, portfolio, or financial institution might perform under severe adverse conditions. It applies hypothetical or historical shocks to factors such as prices, volatility, and liquidity to reveal vulnerabilities, rather than predict a specific outcome.Support and resistanceSupport is a price level where falling prices have tended to stop; resistance is where rising prices have tended to stall. Neither is guaranteed to hold.SwapA swap (or rollover) is an overnight credit or charge for keeping a leveraged position open past the daily cut-off. It reflects the interest-rate difference between the two currencies or the financing cost of the asset.Swing tradingSwing trading is a style that holds positions for several days or weeks to participate in intermediate price movements. Positions commonly remain open overnight, exposing them to gaps, changing market conditions and, depending on the instrument, overnight financing charges.SymbolA symbol is the identifier a trading platform uses for a financial instrument, such as a currency pair, index CFD, or commodity CFD. Naming conventions, including prefixes and suffixes, can differ between brokers and platforms.Symmetrical triangleA symmetrical triangle is a narrowing chart pattern formed by lower highs and higher lows between converging trendlines. It represents consolidation and can resolve in either direction; its shape alone does not establish the direction of the next sustained move.Systematic riskSystematic risk is the part of investment risk associated with forces affecting the broader market, such as recessions, interest-rate changes, or financial crises. Diversifying across individual holdings cannot eliminate it, although different assets may respond differently.
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Tail riskTail risk is exposure to unusually extreme outcomes located at the edges, or tails, of a return distribution. In risk management, it usually refers to rare, severe losses that may be underestimated by models based on typical market conditions.Take profitA take profit is an order that closes a position automatically once the price reaches a set profit level.Technical analysisTechnical analysis studies price charts, patterns and indicators to look for possible trading opportunities.Three black crowsThree black crows is a potential bearish reversal pattern consisting of three consecutive long-bodied falling candles, usually after a rise. Each typically opens within the previous body and closes lower, near its own low, suggesting sustained selling pressure without guaranteeing further declines.Three white soldiersThree white soldiers is a potential bullish reversal pattern consisting of three consecutive long-bodied rising candles, usually after a decline. Each typically opens within the previous body and closes higher, near its own high, suggesting sustained buying pressure without guaranteeing that the rise will continue.TimeframeA timeframe is the interval represented by each bar or candlestick on a time-based chart. Changing it alters how price activity is grouped and displayed, rather than changing the underlying instrument or its trading conditions.Trade balanceThe trade balance is the value of exports minus imports over a specified period. Exports exceeding imports produce a surplus; imports exceeding exports produce a deficit. Some releases cover goods only, while others include both goods and services.Trade journalA trade journal is a personal record of trading decisions, results, and observations. It can include entry and exit details, reasons for taking a trade, and reflections on execution, helping distinguish the trading process from the outcome.Trading haltA trading halt is a temporary suspension of trading in a security or market, typically imposed by an exchange or regulator. Reasons can include pending news, order imbalances or technical problems, and the reopening price may differ substantially from the last traded price.Trading sessionThe forex market runs 24 hours on weekdays, passing through four main sessions: Sydney, Tokyo, London and New York.Trading volumeTrading volume measures the quantity traded during a specified period, expressed in units such as shares or contracts. Coverage depends on the data source; forex platforms may show tick volume, which counts price updates rather than actual traded quantity.Trailing stopA trailing stop is a stop loss that follows the price by a set distance as the trade moves in your favour, and stays put when it moves against you.Treasury bondA Treasury bond is a long-term debt security issued by a national government to raise funds. In the United States, Treasury bonds pay fixed interest and repay principal at maturity; their market prices can change as interest rates and expectations change.Trend followingTrend following is an approach that seeks to participate in an established directional price movement rather than predict turning points. It commonly uses price rules or indicators to identify trends, but sideways markets and sudden reversals can produce repeated losses.TrendlineA trendline is a line drawn on a chart connecting selected price lows or highs to illustrate a direction of movement. Its placement involves judgement, and a move through it does not by itself establish that a trend has reversed.Triple bottomA triple bottom is a chart pattern in which price tests a similar support area three times after a decline. A move above the resistance formed by the intervening rebounds is commonly interpreted as a possible bullish reversal, but it does not guarantee further gains.Triple topA triple top is a chart pattern featuring three similar highs separated by declines, usually following an upward trend. A break below support formed by the intervening lows is commonly interpreted as a possible bearish reversal; repeated highs alone do not confirm the pattern.
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Value at riskValue at risk, or VaR, estimates a loss threshold over a specified period at a chosen confidence level. It does not describe the largest possible loss or how severe losses beyond that threshold could be, and its accuracy depends on the model and data.Virtual private serverA virtual private server, or VPS, is a remotely hosted virtual computer that can run trading software without relying on a user's local computer staying switched on. Availability and connection speed depend on the hosting service, and outages or software failures remain possible.VolatilityVolatility measures how much and how quickly a price moves. Higher volatility means bigger swings, in both directions.Volume profileVolume profile displays recorded volume by price level over a selected period, rather than by time. It highlights areas with relatively heavy or light activity, including the highest-volume level, called the point of control. Its accuracy and coverage depend on the underlying trade or tick data.Volume-weighted average priceVolume-weighted average price (VWAP) is the average price weighted by traded volume over a defined interval, often resetting each trading session. It provides a reference for comparing prices and executions. Chart versions may use bar-based approximations, and tick-volume versions are not equivalent to transaction-volume VWAP.
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Williams percent rangeWilliams percent range, also called Williams %R, measures where the latest close sits within the highest-high to lowest-low range over a chosen period. Its scale runs from minus 100 to zero. Readings near either end indicate relative price extremes rather than guaranteed turning points.Win rateWin rate is the percentage of trades in a defined sample that finish with a profit. Its meaning depends on how costs and breakeven trades are treated, and a high win rate alone does not establish profitability.WithdrawalA withdrawal is money taken out of a trading account and sent through an approved payment route. The amount available may depend on open positions, margin requirements, pending transactions, and verification checks, rather than the displayed balance alone.
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Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Glossary definitions are general education only and are not investment advice. Risk disclosure