TRADING GLOSSARY
Momentum indicator
A 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.
EXAMPLE
With hypothetical prices of 55 now and 50 at the lookback point, difference-based momentum is 5, while ratio-based momentum is 110.
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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