| 1%/10 Net 30 |
| This is a common payment term used in business transactions. It means that the buyer must pay 1% of the total amount due within 10 days of receiving the invoice, and the remaining balance must be paid within 30 days. |
| 10-K |
| A 10-K is a form that public companies are required to file with the Securities and Exchange Commission (SEC) annually. It provides a comprehensive overview of the company's financial performance and operations over the previous fiscal year. |
| 10-Q |
| A 10-Q is a form that public companies are required to file with the SEC quarterly. It provides a summary of the company's financial performance and operations over the previous quarter. |
| 10-Year Treasury Note |
| A Treasury note is a debt security issued by the U.S. Department of the Treasury. A 10-year Treasury note is a debt security that matures in 10 years and pays interest to the bondholder every six months until maturity. |
| 1040 IRS Form |
| The Form 1040 is the standard individual income tax return form used in the United States. It is used to report an individual's income, deductions, and credits to the Internal Revenue Service (IRS). |
| 1040A Form |
| The Form 1040A is a shorter version of the standard Form 1040 individual income tax return. It is used by individuals with simpler tax situations and can be used in place of the 1040 form. |
| 1040EZ Form |
| The Form 1040EZ is the simplest version of the individual income tax return. It can be used by individuals with straightforward tax situations and who meet certain eligibility requirements. |
| 11th District Cost of Funds Index (COFI) |
| The 11th District Cost of Funds Index (COFI) is an index used to adjust the interest rates on certain adjustable rate mortgages. It is based on the average cost of funds for savings institutions in the 11th Federal Reserve District. |
| 12B-1 Fee |
| A 12b-1 fee is a type of fee charged by mutual funds to cover marketing and distribution expenses. These fees are typically assessed as a percentage of the fund's assets, and are paid out of the fund's assets on a regular basis. |
| 183-Day Rule |
| The 183-day rule is a tax rule used to determine whether an individual is considered a resident or nonresident for tax purposes. Under this rule, an individual will be considered a resident for tax purposes if they are present in a country for more than 183 days during a calendar year. |
| 30-Year Treasury |
| A 30-year Treasury is a debt security issued by the U.S. Department of the Treasury. It matures in 30 years and pays interest to the bondholder every six months until maturity. |
| 51% Attack |
| A 51% attack is a type of attack on a blockchain network in which a group of miners control more than 50% of the mining power, allowing them to manipulate the network by reversing transactions and blocking new ones. |
| 401(a) Plan |
| A 401(a) plan is a type of defined benefit retirement plan typically offered by government and non-profit employers. It is funded by employer contributions and is designed to provide a specified benefit to the employee at retirement. |
| 401(k) Plan |
| A 401(k) plan is a type of defined contribution retirement plan. It is funded by employee contributions and employer matching contributions and allows employees to save for retirement on a tax-deferred basis. |
| 403(b) Plan |
| A 403(b) plan is a type of tax-advantaged retirement savings plan available to employees of certain tax-exempt organizations, such as public schools, colleges, universities, and certain non-profit organizations. These plans allow employees to set aside money for retirement on a pre-tax basis, and in some cases, employer contributions are also allowed. Similar to 401(k) plans, there are limits to the amount that an employee can contribute to a 403(b) plan each year. The money invested in a 403(b) plan is not taxed until it is withdrawn, and withdrawals are subject to income taxes and may be subject to penalties if made before the age of 59 1/2. |
| 457 Plan |
| A 457 plan is a type of deferred compensation retirement plan available to certain government and non-profit employees. It allows employees to set aside money for retirement on a pre-tax basis and has similar rules to 401(k) plans. |
| 5/1 Hybrid Adjustable-Rate Mortgage (5/1 Hybrid ARM) |
| A 5/1 hybrid adjustable-rate mortgage is a type of mortgage that has a fixed interest rate for the first five years and then adjusts annually based on an index and margin. |
| 501(c)(3) Organizations |
| 501(c)(3) organizations are non-profit organizations that have been recognized by the Internal Revenue Service (IRS) as tax-exempt under section 501(c)(3) of the Internal Revenue Code. They are typically charitable, religious, educational, scientific, or literary in nature. |
| 52-Week High/Low |
| The 52-week high and low refer to the highest and lowest prices that a stock has traded at over the past 52 weeks. |
| 529 Plan |
| A 529 plan is a type of tax-advantaged savings plan that is specifically designed to encourage saving for future college costs. Contributions to the plan are not tax-deductible, but the investment grows tax-free, and withdrawals are tax-free when used for qualified education expenses. |
| 8-K (Form 8-K) |
| Form 8-K is a report that public companies are required to file with the Securities and Exchange Commission (SEC) within four days of certain events such as changes in management, bankruptcy, or acquisition of another company. |
| 80-20 Rule |
| The 80-20 rule, also known as the Pareto principle, states that roughly 80% of the effects come from 20% of the causes.
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| It is often used to describe how a small number of inputs produce the majority of the outputs. |
| 83(b) Election |
| An 83(b) election is a tax election available to individuals who receive restricted stock units (RSUs) or restricted stock awards (RSAs) from their employer. By making this election, the individual can choose to be taxed on the fair market value of the stock at the time it is received, rather than waiting until the stock vests. This can be beneficial if the stock is expected to increase in value. |
| 0x Protocol |
| 0x is an open-source, decentralized protocol that enables the peer-to-peer exchange of assets on the Ethereum blockchain. The protocol allows for the creation of decentralized exchanges (DEXs) and other decentralized applications that require the exchange of assets. |
| 10-K Wrap |
| A 10-K wrap is a document that combines a company's annual 10-K filing with the Securities and Exchange Commission (SEC) with additional information, such as financial statements and other disclosures that are not required by the SEC. |
| 100% Equities Strategy |
| A 100% equities strategy is an investment strategy that involves holding only stocks in one's portfolio. This strategy aims to maximize returns but also comes with higher risk as the portfolio is exposed to the volatility of the stock market. |
| 1040 U.S. Individual Tax Return Form |
| The Form 1040 is the standard individual income tax return form used in the United States. It is used to report an individual's income, deductions, and credits to the Internal Revenue Service (IRS). |
| 125% Loan |
| A 125% loan is a type of loan that allows the borrower to borrow up to 125% of the value of the collateral used to secure the loan. This can include the value of a home or other property. This type of loan is usually offered at higher interest rates than traditional loans. |
| 12B-1 Fund |
| A 12b-1 fund is a type of mutual fund that charges a fee to cover the expenses of marketing and distributing the fund. These fees are typically assessed as a percentage of the fund's assets, and are paid out of the fund's assets on a regular basis. |
| 12B-1 Plan |
| A 12b-1 plan is a type of mutual fund distribution plan in which a fund charges a fee to cover the expenses of marketing and distributing the fund. These fees are typically assessed as a percentage of the fund's assets, and are paid out of the fund's assets on a regular basis. |
| 130-30 Strategy |
| A 130-30 strategy is an investment strategy that involves short selling stocks that the investor believes will decline in value while using the proceeds to purchase other stocks that the investor believes will appreciate in value. The goal of this strategy is to generate returns that are greater than a traditional long-only strategy. |
| 18-Hour City |
| An 18-hour city is a city that has a growing economy and a relatively low cost of living, but also has a vibrant culture and a high quality of life. These cities are becoming increasingly attractive to people looking to move away from more expensive, larger cities. |
| 2000 Investor Limit |
| The 2000 investor limit is the maximum number of investors allowed in a Regulation D, Rule 506 private placement. |
| 2011 U.S. Debt Ceiling Crisis |
| The 2011 United States debt-ceiling crisis was a political dispute between the Obama Administration and the Congress over raising the federal government's debt limit. The crisis resulted in the passage of the Budget Control Act of 2011, which established caps on discretionary spending and created a "super committee" to make recommendations for further deficit reduction. |
| 25% Rule |
| The 25% rule is an investment rule of thumb that suggests investors should not invest more than 25% of their portfolio in any one stock or sector. |
| 3-2-1 Buydown Mortgage |
| A 3-2-1 buydown mortgage is a type of adjustable-rate mortgage in which the interest rate is lowered in the first three years, and then increases in the next two years, and then increases again in the last year. This type of mortgage is intended to help borrowers afford higher payments in the later years of the loan. |
| 3-6-3 Rule |
| The 3-6-3 rule is a rule of thumb that states that a bank should be able to take in deposits, make loans, and turn a profit all within a three-month period. It is not a formal rule but a way of illustrating how banks used to operate. |
| 3/27 Adjustable-Rate Mortgage (ARM) |
| A 3/27 adjustable-rate mortgage is a type of adjustable-rate mortgage in which the interest rate is fixed for the first three years, and then adjusts every 27 months thereafter. |
| 3(c)(7) Exemption |
| The 3(c)(7) exemption is a provision in the Investment Company Act of 1940 that allows for the formation of private investment companies with a maximum of 100 investors and no more than 50 of whom are not accredited investors. These companies are not required to register with the Securities and Exchange Commission (SEC) and are exempt from certain regulatory requirements. |
| Accumulated distribution: A sum of all the dividends paid out by a company to its shareholders over a period of time. |
| Accumulation fund: A type of mutual fund or unit trust where dividends are automatically reinvested back into the fund, rather than paid out to the investor. |
| Acquisition: The process of acquiring another company or business by purchasing its assets or shares. |
| Active managers: Investment professionals who actively buy and sell securities in an effort to generate returns that outperform a benchmark or index. |
| ADR: American Depositary Receipt, a type of security that represents ownership in a foreign company, traded in the United States. |
| Aggregate demand: The total amount of goods and services demanded in an economy at a given overall price level and in a given time period. |
| Aggregate supply: The total amount of goods and services that firms are willing to produce in an economy at a given overall price level in a given time period. |
| Alerts: A feature in trading and investment platforms that notify users of certain events or changes in the market, such as stock price movements or news announcements. |
| Alpha: A measure of the excess return of an investment relative to a benchmark, often used to evaluate the performance of actively managed portfolios. |
| Amortisation: The process of gradually reducing the value of an asset, such as a loan or bond, through regular payments over a period of time. |
| Annual general meeting (AGM): A mandatory meeting of a company's shareholders to approve the previous year's financial statements and elect the board of directors. |
| Annualized return: The rate of return on an investment over a given period of time, typically expressed as a percentage. |
| Arbitrage: The practice of buying and selling assets in different markets or in different forms in order to take advantage of price differences. |
| Asset classes: Categories of financial assets, such as stocks, bonds, and real estate, that have different characteristics and are subject to different risks. |
| Assets: Anything that has value and can be owned, including cash, investments, real estate, and personal property. |
| At the money: A financial term used to describe an option contract that has a strike price that is roughly equal to the current market price of the underlying asset. An option that is "at the money" has little intrinsic value and will mainly be influenced by changes in implied volatility. |
| Auction market: A market where securities or other financial instruments are bought and sold through open competitive bidding, as opposed to a market where prices are determined by specialists or market makers. Examples of auction markets include the New York Stock Exchange (NYSE) and the NASDAQ. |
| Authorized participant: A participant in an exchange-traded fund (ETF) who is authorized by the ETF issuer to create or redeem shares in the fund. Authorized participants play a crucial role in keeping the ETF's market price in line with its net asset value (NAV). |
| Automated trading: The use of computer programs and algorithms to execute trades automatically without human intervention. Automated trading systems (ATS) can be used for both buy and sell orders and can be based on technical or fundamental analysis. |
| Averaging down: A trading strategy where an investor buys more of a security at a lower price in order to lower the average cost of their position. This can be done to reduce the overall risk of a position, but also means that the investor is effectively increasing their position in a losing trade. |
| Bank of England: The central bank of the United Kingdom that is responsible for issuing and regulating the country's currency, controlling inflation, and managing monetary policy. |
| Base currency: The currency that is used as the reference point in a currency pair. It is the currency that is quoted first in a forex transaction. |
| Base rate: The interest rate at which banks can borrow money from the central bank. It is used as a benchmark for setting interest rates on loans and mortgages. |
| Basis point: A unit of measurement used to express the percentage change in the value of a financial instrument, equal to 1/100th of 1%. |
| Bear market: A market characterized by falling prices and negative investor sentiment, typically lasting for several months or more. |
| Bearish: A market sentiment or outlook that predicts a decline in the value of an asset or market. |
| Bid: The highest price a market participant is willing to pay for a security or commodity. |
| Blue-chip stocks: Stocks of well-established and financially sound companies with a long history of consistent earnings and dividend payments. |
| BoE: The Bank of England is the central bank of the United Kingdom that is responsible for issuing and regulating the country's currency, controlling inflation, and managing monetary policy. |
| Bollinger bands: A technical analysis indicator that uses standard deviation to plot a range of prices around a moving average. |
| Bond trading: The buying and selling of bonds, which are debt securities issued by companies, municipalities, and governments to raise capital. |
| Bonds
A bond is a debt security that pays periodic interest and repays the face value at maturity. Bonds are issued by companies, municipalities, and governments to raise capital. |
| Book value
The book value of a company is the value of its assets minus its liabilities, as recorded on its balance sheet. |
| Book-to-market ratio
The book-to-market ratio is a measure of a stock's value that compares its book value to its market value. A low ratio may indicate that a stock is undervalued, while a high ratio may indicate that it is overvalued. |
| Bottom line
The bottom line is a company's net income or earnings, typically presented at the bottom of the income statement. It is also often used to refer to a company's overall financial performance. |
| Brent crude
Brent crude is a type of oil that is used as a benchmark for pricing other types of crude oil. It is extracted from the North Sea and is considered a high-quality, light sweet crude oil. |
| Brexit
Brexit is the term used to describe the United Kingdom's withdrawal from the European Union (EU). The UK voted to leave the EU in a referendum in June 2016, and officially left the EU on January 31, 2020. |
| Bull market
A bull market is a prolonged period of rising prices in the stock market or other financial markets. |
| Bullish
Bullish refers to an expectation or attitude that the price of an asset or market will rise. |
| Buy
Buy refers to the action of purchasing an asset or security. |
| Broker
A broker is a person or firm that acts as an intermediary between buyers and sellers of securities, commodities, or other financial instruments. They charge a commission or fee for their services. |
| Bull
A bull is an investor who believes that a particular market or security will rise in value. A bull market refers to a prolonged period of rising prices. |
| Cable
Cable is a term used to refer to the exchange rate between the British pound and the US dollar. The term is derived from the days when exchange rates were transmitted via underwater cable. |
| Call option
A call option is a financial contract that gives the holder the right, but not the obligation, to buy an underlying asset at a specified price (strike price) on or before a certain date (expiration date). |
| Capital expenditure
Capital expenditure refers to funds used by a company to acquire or upgrade physical assets such as property, buildings, or equipment. These expenditures are made to improve the company's operations and increase its revenue-generating capacity. |
| Capital gains tax
Capital gains tax is a tax on the profit realized from the sale of a capital asset, such as a stock or real estate, that is above the asset's cost basis. The tax rate for capital gains can vary depending on the type of asset and the length of time it was held. |
| Cash drag
Cash drag refers to the negative impact that holding too much cash can have on a company's returns. When a company holds excess cash, it reduces the return on investment by decreasing the company's earning potential. |
| Cash flow
Cash flow refers to the amount of cash and cash-equivalents coming into and going out of a business. Positive cash flow indicates that a company's liquid assets are increasing, while negative cash flow indicates that they are decreasing. |
| Chargeable gain
A chargeable gain is a term used in the United Kingdom to refer to the profit made on the disposal of an asset that is subject to capital gains tax. |
| Chartist
A chartist is an individual who uses charts and other technical analysis tools to study past market data and make predictions about future price movements in the stock or other financial markets. |
| Closing price
The closing price is the final price at which a security is traded on a given trading day. |
| Commission
Commission refers to a fee charged by a broker or other financial professional for executing a trade or providing other services. |
| Commodity
Commodity refers to a raw material or primary agricultural product that can be bought and sold, such as gold, oil, wheat, or pork bellies. |
| Compound interest
Compound interest is interest that is calculated on the initial principal and also on the accumulated interest of a deposit or loan. This means that interest is earned on interest, leading to the "compounding" effect. |
| Contango and backwardation
Contango and backwardation are terms used to describe the shape of the forward curve for a commodity. In contango, the forward price is higher than the spot price, while in backwardation, the forward price is lower than the spot price. |
| Contracts for difference
Contracts for difference (CFDs) are financial derivatives that allow traders to speculate on the price movement of an underlying asset without owning the asset itself. CFDs allow traders to take both long and short positions, and to trade with leverage. |
| Convexity
Convexity is a measure of the sensitivity of the price of a bond to changes in interest rates. A bond with high convexity will experience a larger change in price for a given change in interest rates than a bond with low convexity. |
| Cost of carry
The cost of carry is the cost of holding an asset, such as a commodity or bond, until a future date. It includes the cost of storage, insurance, and other expenses associated with holding the asset. |
| Covered call
A covered call is a trading strategy in which an investor holds a long position in an asset and sells call options on that same asset in order to generate income from the options premium. This strategy is used to generate income from an asset that is not expected to appreciate significantly in the short term. |
| CPI
The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by consumers for a basket of goods and services. It is used to measure inflation. |
| Credit default swap
A credit default swap (CDS) is a financial contract in which the buyer of the CDS makes a series of payments to the seller in exchange for the right to receive a payoff if a specific credit instrument, such as a bond, experiences a credit event, like default. |
| Credit rating
A credit rating is an assessment of the creditworthiness of a borrower, such as an individual, company, or government. Credit rating agencies assign ratings, such as AAA or B, which indicate the likelihood that the borrower will repay their debts as agreed. |
| Credit spread
Credit spread refers to the difference in yield between a corporate bond and a government bond of similar maturity. It is a measure of the risk of default for the corporate bond. |
| Crest
Crest is a computerized settlement system for the London Stock Exchange. It enables the electronic settlement of trades in UK equities and gilts, and is used by a number of European markets. |
| Crest depositary interest
A Crest depositary interest (CDI) is a financial instrument that represents ownership of shares that are held in electronic form in the CREST system. CDIs are traded and settled in the same way as physical shares. |
| Crystallisation
Crystallisation refers to the process of converting an open position in a futures contract into a cash position by offsetting the position with an opposite transaction in the same contract. |
| Currency appreciation
Currency appreciation refers to an increase in the value of a currency in relation to other currencies. It can occur as a result of market forces such as interest rate differentials and changes in political and economic conditions. |
| Currency depreciation
Currency depreciation refers to a decrease in the value of a currency in relation to other currencies. It can occur as a result of market forces such as interest rate differentials and changes in political and economic conditions. |
| Currency futures
Currency futures are financial contracts that obligate the buyer to purchase a specific currency at a future date at a specific exchange rate. |
| Currency options
Currency options are financial contracts that give the holder the right, but not the obligation, to buy or sell a specific currency at a specific exchange rate on or before a certain date. |
| Currency peg
A currency peg is when a country's government or central bank fixes the exchange rate of their currency to another currency or a basket of currencies. It's a way of maintaining stability in the value of its currency. |
| Current ratio
The current ratio is a financial ratio that measures a company's ability to pay its short-term obligations. It is calculated by dividing current assets by current liabilities. A ratio greater than 1 indicates that a company has sufficient current assets to cover its short-term liabilities, while a ratio less than 1 suggests the opposite. It is used as a measure of a company's liquidity and short-term financial health.
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| Day order:
Day order is a type of order to buy or sell a security that expires at the end of the trading day if it is not executed. |
| Day trading:
Day trading is a strategy of buying and selling financial instruments, such as stocks, within the same trading day. |
| Dark Pool:
A dark pool is a type of private stock exchange where buyers and sellers can trade stocks anonymously. Dark pools are typically used by institutional investors and high-frequency traders to trade large blocks of shares without revealing their trading intentions to the broader market. These pools allow traders to place large orders without revealing their order size or details until the transaction is completed. The name "dark pool" comes from the fact that the trading activity in these pools is not visible to the public, and therefore, is not reflected in the public order book. Dark pools are often used as a way to avoid market impact, which is the change in the price of a security caused by the execution of a large trade. This is because Dark pools can execute big trades without showing the interest of the buyer or the seller, thus avoiding to affect the market price of the security. |
| Debentures:
Debentures are long-term debt instruments issued by companies or governments, usually with a fixed interest rate and a maturity date. They are unsecured debt, which means that they are not backed by collateral. |
| Delta:
Delta is a measure of the sensitivity of the price of a derivative to changes in the price of the underlying asset. It is used in options pricing and risk management. |
| Delta one:
Delta one refers to a class of financial products, such as derivatives, that have a delta close to 1. These products have a strong linear relationship with the underlying asset. |
| Derivative:
Derivative is a financial contract whose value is derived from the price of an underlying asset, such as a stock, commodity, currency, or index. Examples of derivatives include options and futures. |
| Designated investment exchange:
Designated investment exchange refers to an exchange that has been officially recognized by a regulatory authority as a market for the trading of designated investment products. |
| Designated investment products:
Designated investment products are financial instruments that have been officially recognized by a regulatory authority as suitable for trading on a designated investment exchange. |
| Developed markets:
Developed markets refers to countries that have advanced economies and a high standard of living, such as the United States, Japan, and European Union countries. |
| DFB:
DFB stands for Daily Funded Bet, it is a type of financial derivatives product that resets the value of the bet to the current market value on a daily basis, rather than having a fixed expiration date. |
| Digital options:
Digital options, also known as binary options, are a type of option where the payout is either a fixed amount or nothing at all. The payout depends on whether a certain condition is met at the time the option expires. |
| Dividend:
A dividend is a distribution of a portion of a company's earnings to its shareholders, usually in the form of cash or stock. |
| Dividend reinvestment:
Dividend reinvestment is a program that
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| Dividend reinvestment:
Dividend reinvestment is a program that allows shareholders to automatically use their dividends to purchase additional shares in the company, rather than receiving the dividends in cash. This can be a convenient way for shareholders to increase their ownership in the company over time. |
| Dividend withholding tax:
A dividend withholding tax is a tax that is withheld by the company paying the dividend and paid to the government on behalf of the shareholder. It is usually a percentage of the dividend amount and varies depending on the country and the tax laws in effect. |
| Drawdown:
Drawdown refers to the peak-to-trough decline during a specific recorded period of an investment, fund or trading account. It is usually quoted as the percentage between the peak and the trough. |
| Earnings per share
Earnings per share (EPS) is a financial ratio calculated by dividing a company's net income by the number of shares outstanding. It is used to measure the profitability of a company on a per share basis. |
| EBITDA
EBITDA is a financial metric that stands for earnings before interest, taxes, depreciation, and amortization. It is used to measure a company's profitability and ability to generate cash flow. |
| EBITDAR
EBITDAR stands for Earnings Before Interest, Taxes, Depreciation, Amortization, and Rent. It is a measure of a company's cash flow from its core operations and is calculated as EBITDA + Rent |
| ECB
ECB stands for the European Central Bank. It is the central bank of the European Union and is responsible for the monetary policy of the Eurozone, the 19 EU countries that use the euro as their currency. |
| Emerging markets
Emerging markets refers to countries that are in the process of developing their economies and raising the standard of living of their citizens, such as China, India and Brazil. |
| ETP
ETP stands for Exchange Traded Product, it is a type of financial product that is traded on a stock exchange, such as ETFs and ETNs. It tracks the performance of an underlying asset or index. |
| Euro Short-Term Rate (ESTR)
Euro Short-Term Rate (ESTR) is a reference rate that is based on the interest rates of the Euro overnight indexed swaps (OIS) market. It is used as a benchmark for short-term interest rates in the Eurozone. |
| Euroclear
Euroclear is a financial services company that operates a settlement system for the securities markets. It is based in Brussels, Belgium, and is the largest settlement system for international bond transactions. |
| Ex-dividend
Ex-dividend is a term used to describe a stock that is trading without the right to receive the next upcoming dividend payment. Shareholders must have owned the stock prior to the ex-dividend date in order to receive the dividend. |
| Exchange delivery settlement price (EDSP)
The Exchange delivery settlement price (EDSP) is the price at which a futures contract is settled when it expires. It is determined by the price of the underlying asset on the last trading day of the contract. |
| Execution
Execution refers to the process of buying or selling a financial instrument in response to an order. It includes all the steps involved in processing an order, such as matching buyers and sellers, clearing the transaction and settling the trade. |
| Execution-only
Execution-only is a type of service offered by brokers where the client places an order to buy or sell a financial instrument, and the broker executes the order without providing advice or recommendations. This is opposed to an advised service, where the broker provides advice and recommendations to the client. |
| Equity
Equity refers to the value of an asset after all liabilities have been subtracted. It is also known as shareholders' equity or owner's equity, and represents the amount of the company that is owned by its shareholders. |
| Equity options
Equity options are financial contracts that give the holder the right, but not the obligation, to buy or sell a specific number of shares of an underlying stock at a specific price on or before a certain date. |
| ETC
ETC stands for Exchange Traded Commodities, it is a type of financial product that tracks the performance of a commodity, such as gold, silver, or oil. It is traded on a stock exchange and can be bought and sold like stocks. |
| Expiry date
An expiry date is the date on which a financial contract, such as an option or a futures contract, expires and becomes void. On this date, the holder of the contract must either exercise their rights under the contract or let it expire. |
| Exposure in finance
Exposure in finance refers to the degree of risk to which an individual or organization is exposed. It is typically used to refer to the level of risk a lender or investor is exposed to due to their investments or loans. |
| Fair value:
Fair value is the estimated amount for which an asset or liability should exchange on the date of measurement between a willing buyer and a willing seller in an arm's length transaction, after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion. |
| FCA:
FCA stands for Financial Conduct Authority, it is a regulatory body in the United Kingdom for financial markets. It is responsible for regulating conduct within the financial markets and protecting consumers. |
| Federal Reserve:
The Federal Reserve, commonly known as the Fed, is the central banking system of the United States. It was created in 1913 and is responsible for implementing monetary policy, supervising banks and providing financial services to the U.S. government. |
| Fiat currency:
Fiat currency is a type of currency that is issued and backed by a government, as opposed to a commodity such as gold or silver. Fiat currency's value is derived from the faith and credit of the issuing government. |
| Fibonacci retracement:
Fibonacci retracement is a technical analysis tool that uses horizontal lines to indicate areas where a financial instrument's price may experience support or resistance at the key Fibonacci levels before it continues to move in the original direction. These levels are derived from the Fibonacci sequence and are commonly used in conjunction with trend lines to find entry and exit points in the market. |
| Fill:
A fill is the execution of an order to buy or sell a financial instrument. It occurs when an order is matched with an opposing order, resulting in a trade. A fill can also refer to the price at which the trade was executed. |
| Financial instrument:
A financial market is a marketplace in which financial securities, commodities, and other instruments are traded. The most common types of financial markets are stock markets, bond markets, and commodity markets. |
| Financial market:
A fill is the execution of an order to buy or sell a financial instrument. It occurs when an order is matched with an opposing order, resulting in a trade. A fill can also refer to the price at which the trade was executed. |
| Fixed costs:
Fixed costs are expenses that do not vary with the level of production or sales. They are costs that must be paid regardless of whether or not the company is generating revenue. Examples of fixed costs include rent, salaries, and insurance. |
| Flexible ISA:
A flexible ISA is a type of ISA (Individual Savings Account) that allows investors to withdraw and replace money without losing the tax benefits. This means that they can take money out of the ISA, as long as they replace it in the same tax year. |
| Floating exchange rate:
A floating exchange rate is a type of exchange rate system in which the value of a currency is determined by supply and demand in the foreign exchange market. This means that the value of the currency can fluctuate based on market conditions. |
| FOMC:
The Federal Open Market Committee (FOMC) is the monetary policy-making body of the Federal Reserve System. It is responsible for making decisions about interest rates and monetary policy, and it meets eight times per year. |
| Force open:
Force open is a term used to describe a situation where an exchange forces an open position on a trader. This happens when the trader does not have enough margin to cover the trade and the exchange closes the position to prevent further losses. |
| Forex:
Forex, or foreign exchange, is the marketplace where currencies are traded. It is the largest financial market in the world, with an average daily trading volume of over $5 trillion. In forex, one currency is bought and another is sold at the same time, based on the current exchange rate. |
| Forward contract:
A forward contract is a type of financial contract in which two parties agree to buy or sell an asset at a specific price on a specific date in the future. Forward contracts are not traded on an exchange and are typically used to hedge against price fluctuations in the underlying asset. |
| Fractional shares:
Fractional shares refer to a unit of ownership in a company that is less than one full share. This allows investors to buy a portion of a share, rather than having to purchase a full share at a higher cost. |
| French PEA:
French PEA stands for Plan d'Epargne en Actions, it is a type of savings plan in France that is designed to encourage individual investors to buy shares of French companies. It offers tax benefits such as no capital gains tax and a reduced income tax rate on dividends. |
| FTSE:
The FTSE (Financial Times Stock Exchange) is a stock market index that is based on the performance of the top 100 companies listed on the London Stock Exchange. It is considered to be a benchmark index for the performance of the UK stock market. |
| Full replication:
Full replication is a method of replicating the performance of an index by holding all of the underlying securities in the same proportion as the index. This is considered to be the most accurate method of replicating an index, but it can be costly and may not be practical for some investors. |
| Fundamental analysis:
Fundamental analysis is a method of evaluating a security by analyzing its underlying economic and financial factors, such as earnings, dividends, and management quality. The goal of fundamental analysis is to determine the intrinsic value of a security and whether it is over or undervalued. |
| Funding charges:
Funding charges are the costs associated with borrowing or lending money in the futures markets. They are also known as financing costs and can include interest, dividends, and other expenses. |
| Futures contract:
A futures contract is a type of financial contract in which two parties agree to buy or sell an asset at a specific price on a specific date in the future. Futures contracts are traded on exchanges and are used to hedge against price fluctuations in the underlying asset. |
| Gamma in trading:
Gamma in trading refers to the rate of change of an option's delta with respect to the underlying asset's price. Gamma measures the rate at which the delta of an option changes as the price of the underlying asset changes. It is used to measure the sensitivity of the option's value to changes in the price of the underlying asset. |
| GDP:
GDP stands for Gross Domestic Product. It is a measure of the monetary value of all the final goods and services produced within a country in a given period of time, typically a year. It is used to determine the economic health and growth of a country. |
| Gearing ratio:
Gearing ratio is a measure of a company's financial leverage. It is calculated by dividing a company's total debt by its total shareholder equity. A high gearing ratio indicates that a company is highly leveraged and has a greater amount of debt relative to its equity. |
| Gilt
A gilt is a British government bond, issued by the Debt Management Office. Gilts are issued to raise money for the government and are considered to be among the safest investments. |
| Grey market:
The grey market refers to a market in which goods are sold through channels that are not authorized by the manufacturer or distributor. This can include imported goods, counterfeit items, or goods that have been sold by a distributor before they have been officially released. |
| Gross margin:
Gross margin is a measure of a company's profitability. It is calculated by subtracting the cost of goods sold (COGS) from revenue and then dividing by revenue. The result is expressed as a percentage. |
| Guaranteed stop:
A guaranteed stop is a type of stop loss order that is guaranteed to be executed at the specified price, regardless of market conditions. This means that even in fast-moving or volatile markets, the stop loss will be triggered at the specified price, helping to limit losses. |
| Handle :
A handle is a term used to describe the whole number portion of a price. For example, in a stock price of $123.45, the handle is $123. |
| Hawks and doves:
Hawks and doves are terms used to describe different perspectives on monetary policy. Hawks are typically in favor of tighter monetary policy, such as higher interest rates, to combat inflation. Doves, on the other hand, tend to support looser monetary policy, such as lower interest rates, to boost economic growth. |
| Hedge:
A hedge is an investment made with the goal of reducing the risk of adverse price movements in an asset. Hedging can be done through a variety of financial instruments, such as options, futures, or swaps. |
| Heikin Ashi:
Heikin Ashi is a type of cand chart that is used in technical analysis. It is similar to a traditional cand chart, but it is calculated differently and is intended to be more effective at identifying trends and filtering out noise. |
| Helicopter money:
Helicopter money is a term used to describe a monetary policy in which a central bank directly provides money to the public. The idea behind helicopter money is that by directly increasing the money supply, it will stimulate spending and boost economic growth. |
| High-frequency trading:
High-frequency trading is a type of trading that uses advanced algorithms and powerful computer systems to execute trades at extremely high speeds. These trades are typically based on very short-term market movements and are executed in milliseconds. |
| Hedge Fund:
A hedge fund is a type of investment fund that pools capital from a variety of investors and uses that capital to invest in a wide range of assets, such as stocks, bonds, currencies, commodities, and derivatives. Hedge funds are typically managed by professional investment managers who use a variety of investment strategies to generate returns for the fund's investors. These strategies can include long-short investing, where the fund takes both long and short positions in different securities, as well as leveraging, where the fund borrows money to invest in order to amplify potential returns. Hedge funds are known for their high-risk and high-return characteristics, and are often only available to accredited or high-net-worth investors. |
| Ichimoku Cloud:
Ichimoku Cloud is a technical indicator that is used to identify trends and potential buy and sell signals in the financial markets. It consists of several lines and a cloud-like area, which is why it is often called the "Ichimoku Cloud". The indicator was developed by a Japanese journalist in the late 1960s and is commonly used in Japan, but it has gained popularity worldwide in recent years. |
| In the money:
In the money refers to an option that has intrinsic value, meaning it would have value if it were exercised immediately. A call option is considered in the money when the current price of the underlying asset is above the strike price, and a put option is in the money when the current price of the underlying asset is below the strike price. |
| Inception date:
The inception date refers to the date that a fund, index or other financial product was first established. It is used to determine the performance of the investment since its launch. |
| Income distribution:
Income distribution refers to the payment of dividends or interest to investors from a company, fund or other financial product. This payment may be made on a regular schedule, such as monthly or quarterly, or it may be made as a one-time distribution. |
| Income fund:
An income fund is a type of mutual fund or exchange-traded fund (ETF) that is focused on generating income for investors. These funds typically invest in a mix of bonds, dividends-paying stocks, and other fixed-income securities. |
| Index:
An index is a statistical measure of the performance of a group of securities, such as a stock market or a sector of the economy. Indices are used as benchmarks to gauge the performance of a portfolio or to track the performance of a specific market or sector. |
| Index providers:
Index providers are organizations that create and maintain indices. These providers create indices based on certain criteria, such as market capitalization, sector, or region, and then calculate the performance of the index by tracking the performance of the underlying securities. Examples of index providers include S&P Global, MSCI, and FTSE Russell. |
| Indices trading:
Index trading refers to buying or selling financial instruments that track the performance of an index. These instruments can include exchange-traded funds (ETFs), futures, or options. Index trading allows investors to gain exposure to a specific market or sector without having to purchase individual stocks. |
| Inflation:
Inflation is an economic term that refers to the rate at which the general level of prices for goods and services is rising and subsequently, the purchasing power of currency is falling. It is measured by the Consumer Price Index (CPI) or the Producer Price Index (PPI), which track the average change in prices of a basket of goods and services over a certain period. Central Banks try to maintain a low and stable inflation rate for a healthy economy. |
| Inflation risk:
Inflation risk is the risk that the value of an investment will decrease due to a rise in the general level of prices. This can happen when the returns on an investment are not high enough to keep pace with inflation, thus decreasing the purchasing power of the investment over time. |
| Interest:
Interest is the cost of borrowing money, typically a percentage of the amount borrowed. It can also refer to the payment made to a depositor for keeping money in a savings account or other type of deposit account. |
| Interest rate swap:
An interest rate swap is a financial contract in which two parties agree to exchange a series of cash flows based on a specified interest rate or index. The most common type of interest rate swap is when one party agrees to pay a fixed rate and the other party agrees to pay a floating rate, based on a specific benchmark. |
| Interest rates:
Interest rates are the percentage at which money can be borrowed or earned on a deposit. They are used to measure the cost of borrowing and the return on savings, and can have a significant impact on the economy and financial markets. |
| Internal rate of return:
The internal rate of return (IRR) is a measure of the profitability of an investment. It is the discount rate at which the net present value (NPV) of the investment's cash flows is equal to zero. A higher IRR indicates a more profitable investment. |
| Intrinsic value:
Intrinsic value refers to the inherent or fundamental value of an asset, independent of its market price. It is the value that would be present if the asset were not traded on a market. |
| Investment appraisal:
Investment appraisal is the process of evaluating the potential return and risk of an investment. It is used to determine whether an investment is worth making and to compare different investment opportunities. |
| Investment grade:
Investment grade refers to the quality of a company or a bond, typically rated by credit rating agencies, to indicate the level of risk associated with an investment in that security. Investment grade securities are considered to be of high credit quality, with a low risk of default, and are suitable for most investors. |
| IPO:
An IPO, or Initial Public Offering, is the process by which a privately-held company offers its shares to the public for the first time. This allows the company to raise capital by selling shares to the public, and it also provides a way for the company's owners and early investors to liquidate their holdings. |
| Key features document (KFD):
A Key Features Document (KFD) is a document that provides a summary of the key features and risks of a financial product, such as an insurance policy, bond, or investment fund. The KFD is intended to help consumers understand the main features and risks of the product and to help them make an informed decision about whether to purchase the product. It typically includes information about the product's objectives, risks, charges, and performance, as well as the contact details of the provider.
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| Key investor information document (KIID):
A Key Investor Information Document (KIID) is a document that provides a summary of the key features and risks of a UCITS (Undertakings for Collective Investment in Transferable Securities) fund. The KIID is intended to help investors understand the main features and risks of the fund and to help them make an informed decision about whether to invest in the fund. It typically includes information about the fund's objectives, risks, charges, and performance, as well as the contact details of the fund provider. This document is mandatory for all UCITS funds, the goal is to provide a simple and clear information, so the investors can understand the fund's characteristics and the level of risks. |
| Large cap:
Large cap refers to a company with a market capitalization of more than $10 billion. Large cap companies are typically well-established, have a long operating history, and are considered to be less risky than small cap companies.
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| Leverage:
Leverage refers to the use of borrowed money to increase the potential return of an investment. In trading, leverage is often used to trade a larger position than what the trader could afford with their own capital. It can amplify the potential gains, but also the potential losses. |
| Leveraged ETFs:
Leveraged ETFs are exchange-traded funds (ETFs) that use financial derivatives and debt to amplify the returns of an underlying index or benchmark. These funds are designed to provide returns that are multiples of the returns of the underlying index or benchmark, such as 2x or 3x the return. However, because of the use of leverage, leveraged ETFs are considered to be riskier than traditional ETFs. |
| Leveraged products:
Leveraged products are financial products, such as ETFs, futures, or options, that use leverage to amplify the returns of an underlying asset. These products are intended to provide higher returns than the underlying asset, but also come with higher risk. |
| Liabilities:
Liabilities are obligations that a company or individual owes to others. They include things like loans, bonds, and accounts payable. Liabilities are typically divided into short-term (due within one year) and long-term (due in more than one year). |
| Limit order:
A limit order is an order to buy or sell a security at a specific price or better. A buy limit order can only be executed at the limit price or lower, and a sell limit order can only be executed at the limit price or higher. |
| Limit up / limit down:
Limit up and limit down refer to the rules that some exchanges have in place to halt trading of a security if the price of the security moves too far in one direction. This is done to prevent excessive volatility and to protect investors from extreme price changes. |
| Liquidity:
Liquidity refers to the ease with which an asset can be bought or sold without affecting its market price. In general, assets that are highly liquid can be bought and sold quickly and at prices that are close to their fair value. The most liquid assets are cash and cash equivalents. Stocks, bonds, currencies, and commodities are considered less liquid. A company or a market with high liquidity is considered less risky and is more attractive to investors. |
| London Interbank Offered Rate (LIBOR):
The London Interbank Offered Rate (LIBOR) is the average interest rate at which a select group of large banks borrow funds from other banks in the London wholesale money market. It is used as a benchmark for short-term interest rates around the world, and it is also used as a reference rate for financial products such as adjustable-rate mortgages, credit cards, and student loans. |
| Long position:
A long position refers to an investment in which the investor buys an asset with the expectation that its value will increase. For example, buying a stock or a commodity with the expectation that its price will go up. |
| Lot:
A lot refers to a unit of trading in a financial market. It can refer to a specific number of shares of stock, a specific quantity of a commodity, or a specific amount of a currency. The size of a lot can vary depending on the market and the type of asset being traded. |
| M1 Money supply:
M1 Money Supply is a measure of the money supply that includes cash in circulation, checking deposits, and traveler's checks. It is considered to be a narrow measure of the money supply, as it includes only the most liquid forms of money.
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| M2 Money supply:
M2 Money Supply is a measure of the money supply that includes M1, as well as savings deposits, time deposits under $100,000, and balances in retail money market mutual funds. It is considered to be a broader measure of the money supply, as it includes less liquid forms of money. |
| Maintenance margin:
Maintenance margin is the minimum amount of equity that an investor must maintain in their margin account. If the equity in the account falls below the maintenance margin, the investor will receive a margin call, which requires them to either deposit more cash or securities into the account or sell some of the securities in the account. |
| Margin call:
A margin call is a demand from a broker or a clearing firm for an investor to deposit additional money or securities into a margin account. This occurs when the equity in the account falls below the maintenance margin. |
| Margin:
Margin refers to the amount of money that an investor must deposit in a margin account in order to buy securities on margin. When buying securities on margin, the investor borrows money from the broker to purchase the securities, and the margin is used as collateral for the loan. |
| Margin deposit:
A margin deposit is the money that an investor must deposit into a margin account in order to buy securities on margin. The deposit is used as collateral for the loan and it is typically a percentage of the total purchase value. |
| Market capitalization:
Market capitalization is the total value of a company's outstanding shares of stock. It is calculated by multiplying the number of shares outstanding by the current market price per share. |
| Market data:
Market data refers to information about the prices, trading volume, and other characteristics of securities traded on financial markets. It includes information on prices, trading volumes, open interest, and other characteristics of financial instruments. This data is used by traders, investors, and market participants to make informed investment decisions and to assess market conditions. Market data can be obtained from various sources such as stock exchanges, market data vendors and financial news providers. |
| Market maker:
A market maker is a firm or an individual that quotes both a buy and a sell price for a financial instrument, such as a stock or a currency, and is willing to buy or sell at those prices. Market makers help to ensure liquidity in the market by providing a bid and ask price for a security and by standing ready to buy or sell it at any time. |
| Market order:
A market order is an order to buy or sell a security at the current market price. These types of orders are executed immediately and at the best available price. |
| Market value:
Market value is the price at which an asset would trade in a competitive marketplace. It is determined by the supply and demand forces of the market and can be different from the value listed on the balance sheet of a company. |
| Merger:
A merger is a combination of two or more companies into a single entity. The companies can be merged through a stock or asset purchase, or through a merger of equals. |
| MetaTrader:
MetaTrader is a trading platform developed by MetaQuotes software for online trading in the forex, CFDs, and futures markets. The platform provides advanced charting capabilities, automated trading strategies, and a variety of technical indicators. |
| Mid cap:
Mid cap refers to a company with a market capitalization between $2 billion and $10 billion. Mid cap companies are typically more established than small cap companies but have more growth potential than large cap companies. |
| Modified internal rate of return (MIRR):
The modified internal rate of return (MIRR) is a financial ratio that calculates the return on an investment, assuming that cash flows are reinvested at the firm's cost of capital rather than the internal rate of return. It is used to evaluate the profitability of long-term projects or investments. |
| MACD
Moving average convergence/divergence (MACD): The moving average convergence/divergence (MACD) is a technical indicator that is used to identify changes in momentum and trend in financial markets. It is calculated by subtracting a 26-day exponential moving average from a 12-day exponential moving average. |
| Moving average (MA):
Moving average: A moving average is a statistical tool used to smooth out short-term fluctuations in data and to highlight long-term trends. It is calculated by taking the average of a set of data points over a specified number of periods. For example, a 50-day moving average takes the average closing price of a stock over the last 50 days. |
| Multilateral trading facilities (MTF):
A multilateral trading facility (MTF) is a European regulatory term for a non-exchange financial trading venue. MTFs are alternative trading systems (ATS) that bring together multiple third-party buying and selling interests in financial instruments. |
| Multiplier effect:
The multiplier effect refers to the increase in economic activity that results from an initial injection of spending into the economy. It is the process by which an initial investment generates a larger increase in total income. |
| Mutual fund:
A mutual fund is a type of investment vehicle that pools money from multiple investors to purchase securities. The value of a mutual fund's shares is determined by the fund's net asset value (NAV), which is calculated by dividing the total value of the fund's assets by the number of shares outstanding. Mutual funds are managed by professional money managers, who make investment decisions on behalf of the fund's shareholders. |
| Negative balance protection:
Negative balance protection is a feature that ensures that a customer's account balance cannot go below zero as a result of trading losses. This means that if the value of a customer's account falls below zero, the customer will not be liable for any further losses.
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| Net asset value (NAV):
The net asset value (NAV) is the value of an investment company's assets minus its liabilities. It is most commonly used to refer to the value of a mutual fund or an exchange-traded fund (ETF). The NAV per share is calculated by dividing the total NAV by the number of shares outstanding. |
| Net change:
Net change is the difference between the current price of a stock or other security and its previous closing price. It is often used to measure the performance of a security over a specific period of time. |
| Net income:
Net income is a company's total revenue minus its total expenses. It is also referred to as "net profit" or "bottom line." It is the amount of money a company has left over after all expenses have been paid. |
| NISA:
NISA is a tax-efficient savings account in Japan. It allows the account holder to save and invest up to a certain amount each year without paying taxes on the interest earned or capital gains. |
| Nominal:
Nominal refers to the face value of a financial instrument, such as a bond or a currency, rather than its current market value. It is also used to describe a value that has not been adjusted for inflation. |
| Nominee:
A nominee is a person or entity that holds legal title to a property or a financial asset on behalf of the beneficial owner. Nominees are commonly used in situations where the beneficial owner wishes to remain anonymous or wishes to avoid the legal responsibilities that come with ownership. |
| Non-current assets:
Non-current assets are long-term assets that a company plans to hold for more than a year, such as property, plant, equipment, and intangible assets such as patents and trademarks. These assets are expected to generate future economic benefits and are reported separately from current assets on a company's balance sheet. |
| Non-farm payrolls:
Non-farm payrolls refers to the number of employees in the U.S. who were on payrolls of non-agricultural businesses. The Bureau of Labor Statistics (BLS) releases a report on the first Friday of each month that includes this data. This report is closely watched by investors, economists and policy makers as it is a key indicator of economic health. |
| OEIC:
OEIC stands for Open-Ended Investment Company, which is a type of investment company that issues and redeems shares at net asset value. OEICs are similar to mutual funds, but they are structured as companies rather than trusts.
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| Off book:
Off book refers to financial transactions that are not recorded in a company's official financial records. These transactions may be illegal or unethical, but they are not reflected in the company's official financial statements. |
| Offer:
An offer is an invitation to buy a security at a specified price. It can also refer to the price at which a seller is willing to sell a security. |
| On exchange:
On exchange refers to a financial transaction that takes place on a regulated exchange, such as the NYSE or NASDAQ. These transactions are subject to the rules and regulations of the exchange. |
| On-balance volume (OBV):
On-balance volume (OBV) is a technical indicator that uses volume data to predict changes in stock prices. It is calculated by adding or subtracting the volume on days when the stock's closing price is up or down, respectively. |
| Ongoing charges figure (OCF):
The ongoing charges figure (OCF) is a measure of the ongoing costs of owning a particular investment product, such as a mutual fund or ETF. It includes all the costs associated with running the fund, such as management fees, administration costs and other expenses. The OCF is expressed as a percentage of the fund's net asset value and is intended to make it easier for investors to compare the costs of different funds. |
| OPEC:
OPEC stands for the Organization of the Petroleum Exporting Countries. It is an intergovernmental organization made up of 14 member countries from the Middle East, Africa, and South America, which coordinates and unifies the petroleum policies of its member countries. The main objective of OPEC is to secure fair and stable prices for petroleum producers and a regular supply for consumers. |
| Open:
In the context of trading, open refers to the first price at which a security is traded on a given trading day. It is also used to refer to an open position, which is a trade that has not yet been closed. |
| Open offer:
An open offer is a type of public offer of securities in which the number of shares or bonds offered is not fixed. This means that the issuer or underwriter of the securities may issue more shares or bonds than originally planned, depending on the demand. |
| Open positions:
Open positions refer to trades that have not yet been closed. When a trader enters a long position, it means they have bought an asset and expect the price to rise. When a trader enters a short position, it means they have sold an asset they do not own and expect the price to fall. |
| Option:
An option is a financial contract that gives the holder the right, but not the obligation, to buy or sell an underlying asset, such as a stock, commodity, or currency, at a specified price and on a specified date. There are two types of options: call options, which give the holder the right to buy the underlying asset, and put options, which give the holder the right to sell the underlying asset. |
| Options spread:
An options spread is the difference between the price of two options contracts. It can be created by buying one option and selling another option with the same expiration date but a different strike price. Options spreads are used to limit risk and increase potential returns. |
| Non-farm payrolls:
Order book: An order book is a digital or physical list of buy and sell orders for a specific security or asset, such as a stock or commodity. The order book is maintained by a stock exchange or other market maker and shows the bid and ask prices for the security along with the number of shares or contracts being offered at each price level. |
| Order:
An order is a request to buy or sell a security or asset at a specific price. Orders can be placed at a specified price or at the best available price. Orders can also include instructions to execute the trade only under certain conditions, such as a stop-loss order. |
| OTC trading:
OTC trading stands for Over-The-Counter trading, which refers to trading of financial instruments such as stocks, bonds, currencies, commodities, derivatives and other financial products, which is done directly between two parties, without going through a central exchange or intermediary. |
| Out of the money:
Out of the money refers to an option that has no intrinsic value and that would only have value if the underlying asset's price were to change in the future. For example, a call option is out of the money if the current price of the underlying asset is lower than the strike price of the option. A put option is out of the money if the current price of the underlying asset is higher than the strike price of the option. |
| Overexposure:
Overexposure refers to an excessive or over-concentrated position in a single security or asset, which increases the risk of losing a significant portion of an investment portfolio. This can be caused by not diversifying investments enough, or by taking on too much leverage, which amplifies potential losses. |
| P/E ratio: The price-to-earnings ratio (P/E ratio) is the ratio for valuing a company that measures its current share price relative to its per-share earnings. |
| Parent company: A parent company is a company that owns enough voting stock in another firm to control management and operations by influencing or electing its board of directors. |
| Parity: Parity refers to the condition of being equal in value, status, or amount. In finance, it often refers to the condition of two currencies having the same value or purchasing power. |
| Participating shares: Participating shares are a type of stock that gives holders the right to participate in the distribution of profits in addition to receiving dividends. |
| Passive management: Passive management is an investment strategy that aims to replicate the performance of a market index or benchmark, rather than actively managing and selecting individual stocks. |
| Physical replication: Physical replication refers to a technique used in index funds to replicate the performance of an index by holding the same securities that make up the index, in the same proportions as the index. |
| Pink slips: Pink slips are informal term used for a notice of termination or a layoff given to an employee. It comes from the custom of the slip of paper being pink in color. |
| Pip: A pip is a unit of measurement used in the foreign exchange market to express the change in value between two currencies. One pip is equal to the smallest change in value that a currency pair can make, typically 0.0001 for most currency pairs. |
| Portfolio: A portfolio is a collection of investments, such as stocks, bonds, and real estate properties, held by an individual or organization. |
| Portfolio risk: Portfolio risk is the potential for an investment portfolio to lose value due to a variety of factors, including market fluctuations, interest rate changes, and economic conditions. |
| Position: In finance, a position refers to the amount of a security, commodity, or currency that is owned or borrowed by an individual or organization. |
| Post market: The post-market refers to the period of trading that occurs after the regular market hours, usually between 4:00 PM and 8:00 PM EST. |
| Power of attorney: A power of attorney is a legal document that gives someone the authority to act on another person's behalf in financial or legal matters. |
| Pre-market: The pre-market refers to the period of trading that occurs before the regular market hours, usually between 4:00 AM and 9:30 AM EST. |
| Preference shares: Preference shares (or preferred shares) are a type of stock that gives holders priority over common shareholders in terms of dividends and assets in the event of liquidation. |
| Profit and loss statement: A profit and loss statement (also known as an income statement) is a financial statement that shows a company's revenues, costs, and expenses over a period of time, usually a quarter or a year. |
| PTM (panel of takeovers and mergers) levy: A PTM levy is a fee that companies are required to pay when they make certain changes to their ownership structure, such as a merger or acquisition. |
| Pullback: A pullback is a temporary reversal in the price of an asset, which often occurs after a strong upward or downward trend. |
| Purchasing managers index (PMI): A purchasing managers index (PMI) is a measure of the economic health of a particular sector or country, based on a survey of purchasing managers in manufacturing and service industries. |
| Put option: A put option is a financial contract that gives the holder the right, but not the obligation, to sell an underlying asset at a specified price (strike price) on or before a certain date (expiration date). |
| Quantitative easing: Quantitative easing is a monetary policy employed by central banks to increase the money supply in the economy by buying government bonds or other securities from banks, in order to stimulate economic growth and combat deflation. |
| Quote currency: In forex trading, the quote currency is the second currency quoted in a currency pair. The value of the base currency is stated in terms of the quote currency. |
| Quote price: A quote price is the price at which a market maker is willing to buy or sell a financial instrument, such as a stock or a currency. |
| Quant trading: Quant trading (or quantitative trading) is a type of trading that uses mathematical models and algorithms to make investment decisions. These models and algorithms are based on historical data and are designed to identify patterns and predict future market movements. |
| Quant strategy: A quant strategy refers to a particular approach to quantitative trading, which may involve using various mathematical models and algorithms to make investment decisions. These strategies are typically based on historical data and are designed to identify patterns and predict future market movements. |
| Rally: A rally is a period of sustained upward movement in the price of a financial instrument, such as a stock or a commodity. |
| Rally (Bear Market): A rally in a bear market refers to a temporary upward movement in the price of a security or an index during a prolonged period of downward market trend. |
| Random walk theory: Random walk theory is a financial theory that states that the past movement or direction of a stock's price or any financial instrument has no bearing on its future movement. It suggests that stock prices change randomly and that it is impossible to consistently predict future movements based on past trends. |
| Range: In finance, the range refers to the difference between the highest and lowest price at which a security or commodity is traded during a given period of time. |
| Rate of return: Rate of return is a ratio that measures the profitability of an investment over a certain period of time, typically expressed as a percentage. It is calculated by dividing the total return by the initial investment. |
| Ratio spread: A ratio spread is a type of option trading strategy that involves buying and selling options in a specific ratio. The goal of this strategy is to take advantage of the difference in volatility between different options and to make a profit when the market moves in a certain direction. |
| Recognised investment exchanges: Recognised investment exchanges are stock exchanges that have been officially recognized by a regulatory authority as meeting certain standards for listing securities and for trading activities. These exchanges have to meet the criteria set by the regulatory authority for listing securities, trading and settlement. |
| Redemption yield: Redemption yield is the rate of return that an investor can expect to receive on a bond if they hold it until maturity, and it is expressed as a percentage of the bond's face value. It is calculated by taking into account the bond's coupon rate, the frequency of the coupon payments, the bond's price, and the time remaining until the bond's maturity. |
| REIT: A Real Estate Investment Trust (REIT) is a type of investment vehicle that owns and manages income-generating real estate properties, such as apartments, office buildings, and shopping centers. REITs are required to distribute at least 90% of their taxable income to shareholders each year, making them an attractive option for investors looking for a steady stream of income. |
| Reserves: Reserves refers to the amount of money that a company or government has set aside for a specific purpose, such as to pay off debt or to handle unexpected expenses. In the context of a central bank, it refers to the amount of money held by the bank as assets, which they can use to support the economy or to stabilize the financial system. |
| Resistance level: A resistance level is a price point at which a security or financial instrument has difficulty breaking through and moving higher. This level is often seen as a ceiling and can signal a potential reversal or consolidation in the security's price. |
| Retail Distribution Review (RDR): The Retail Distribution Review (RDR) is a regulatory initiative implemented by the Financial Conduct Authority (FCA) in the United Kingdom, which aimed to improve the standard of advice and services provided to retail investors and increase transparency of charges. The RDR is designed to ensure that all advisers providing advice on retail investment products meet a minimum level of qualifications and are subject to an ongoing professional development. |
| Return of capital: Return of capital refers to the portion of a stock's or mutual fund's return that is not from earnings or income, but from the return of an investor's original capital. This can occur when a company returns some of its cash or assets to shareholders, such as through a stock buyback or a dividend payout. |
| Return on equity (ROE): Return on equity (ROE) is a financial ratio that measures a company's profitability by calculating the percentage return on the money that shareholders have invested. It is calculated by dividing a company's net income by its shareholder's equity. A high ROE indicates that a company is generating a good return on the money invested by its shareholders. |
| Reversal: A reversal is a change in the direction of a financial instrument's price movement, such as a stock or commodity. A reversal can occur from an uptrend to a downtrend, or from a downtrend to an uptrend. This change in direction can signal a potential buying or selling opportunity for traders. |
| Rho: Rho is a measure of the sensitivity of an option's price to changes in interest rates. It is the rate at which the price of an option changes in relation to a 1% change in interest rates. In general, options with longer expiration dates will have a higher rho value than options with shorter expiration dates, as the longer the time to expiration, the more sensitive the option is to changes in interest rates. |
| Rights issue: A rights issue is a type of secondary offering in which a company offers its existing shareholders the opportunity to purchase additional shares in the company at a discounted price. Shareholders are typically given a certain number of rights for each share they own, which they can then use to purchase new shares. This helps the company raise additional capital without diluting the ownership stake of its existing shareholders. |
| Risk management: Risk management is the process of identifying, assessing, and prioritizing potential risks and implementing strategies to mitigate or minimize their impact on an organization or individual. This can include financial risks, operational risks, strategic risks, and compliance risks. Risk management is an ongoing process that involves monitoring and reviewing risks on an ongoing basis. |
| Risks: Risks refer to the potential negative impact or loss that an event or action may have on an organization or individual. Risks can include financial risks, operational risks, strategic risks, and compliance risks. Identifying and assessing risks is an important part of risk management, as it allows organizations and individuals to implement strategies to mitigate or minimize the potential impact of risks. |
| RNS: RNS stands for Regulatory News Service. It is a service provided by the London Stock Exchange (LSE) that allows companies listed on the LSE to disseminate important financial and regulatory information to the market in a timely manner. RNS enables companies to meet their obligations under the EU Market Abuse Regulation (MAR) and the Disclosure Guidance and Transparency Rules (DTRs) of the Financial Conduct Authority (FCA). |
| ROCE: ROCE stands for Return On Capital Employed. It is a financial ratio that measures a company's profitability and efficiency in generating returns from the capital it has employed. It is calculated by dividing the company's operating profit by its capital employed. A high ROCE indicates that a company is generating a good return on the capital it has invested in its business. |
| Rollover: In the context of trading, rollover refers to the process of extending the expiration date of a futures contract or option. This is done by closing the original contract and opening a new one with a later expiration date. Rollover is typically done when a trader wishes to maintain a position in a contract that is set to expire, but wants to avoid taking delivery of the underlying asset.
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| RPI: RPI stands for Retail Price Index. It is a measure of inflation in the United Kingdom, which is calculated by the Office for National Statistics (ONS). RPI measures the change in the cost of a basket of goods and services consumed by households in the UK, such as food, clothing, housing and transport. It is widely used as a benchmark for inflation and is also used to adjust interest rates and other financial products.
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| RSI: RSI stands for Relative Strength Index. It is a technical indicator that compares the magnitude of recent gains to recent losses in an attempt to determine overbought and oversold conditions of an asset. RSI values range from 0 to 100, with values above 70 indicating overbought conditions, and values below 30 indicating oversold conditions.
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| Run on the pound: A situation in which a large number of people withdraw their deposits or convert their currency into a more stable currency, such as the US dollar, due to loss of confidence in the economy or the currency itself. This can lead to a decrease in the value of the currency and difficulty for banks and financial institutions to meet withdrawal demands. |
| Scalp: A trading strategy where an investor buys and sells a stock or other financial instrument quickly and repeatedly, in order to profit from small price movements. Scalping is considered a high-risk, high-reward strategy. |
| SEAQ (Stock Exchange Automation Quotation System): A system used by the London Stock Exchange for the trading of smaller, less liquid stocks. It allows market makers to quote both bid and offer prices for a stock and for traders to trade directly with them. |
| SEC (Securities and Exchange Commission): A U.S. government agency responsible for regulating securities markets and protecting investors. The SEC enforces federal securities laws and oversees the registration and reporting of public companies, brokerage firms, and investment advisers. |
| Sectors: A group of companies within a specific industry or market. Examples of sectors include technology, healthcare, finance, and energy. |
| Secured Overnight Financing Rate (SOFR): A benchmark interest rate for overnight borrowing and lending transactions that are collateralized by U.S. Treasury securities, it is published by the Federal Reserve Bank of New York (FRBNY) and it's used to price floating-rate debt securities and derivatives. |
| Securities: Financial instruments such as stocks, bonds, and options that represent ownership in a company or a debt that is owed to an investor. Securities can be traded on securities exchanges or in the over-the-counter market. |
| Securities lending: The temporary transfer of securities from one party to another in exchange for cash or other securities. Securities lending is used to facilitate short selling and other trading strategies, and it is typically done by institutional investors such as mutual funds and pension funds. |
| SETS (Stock Exchange Electronic Trading Service): A system used by the London Stock Exchange for the trading of the most liquid and actively traded UK and international shares. It allows for an automatic matching of buy and sell orders at the best available price. |
| Share buyback: A process by which a company repurchases its own shares from the market, in order to reduce the number of shares outstanding and increase the value of the remaining shares. Share buybacks can be used as a way for companies to return value to shareholders. |
| Share price: The current price at which a share of stock can be bought or sold. Share price can be influenced by a variety of factors such as company performance, industry trends, and overall market conditions. |
| Shares: Units of ownership in a company. When a company issues shares, it is effectively selling a portion of itself to investors, who become shareholders and have a right to vote on certain matters related to the company. |
| Shares trading: The buying and selling of stocks in a stock market. |
| Shariah-compliant investing: Investment strategies that adhere to the principles of Islamic law, also known as Shariah law. |
| Short: A financial term that refers to the act of borrowing an asset, such as a stock, with the intention of selling it at a higher price and buying it back at a lower price to make a profit. |
| Short ETF: An ETF that aims to provide the opposite of the performance of the underlying index or benchmark it tracks. It is used to make short-term bets on market declines. |
| Short-selling: The practice of borrowing shares of a stock and selling them in the market with the expectation that the price will fall, allowing the investor to buy the shares back at a lower price and return them to the lender, pocketing the difference as profit. |
| Shortfall risk: The risk that an investment's return will not meet the desired or expected level. |
| Slippage: The difference between the expected price of a trade and the price at which the trade is actually executed. |
| Smart order router: An electronic system that routes trading orders to the most advantageous market or exchange based on real-time market conditions, such as price and volume. |
| SNB: Swiss National Bank, the central bank of Switzerland. |
| Socially responsible investing: Investment strategies that take into consideration environmental, social, and governance (ESG) factors in addition to financial considerations. |
| Spot: A financial term referring to the current market price of an asset, such as a currency or commodity, as opposed to its forward or future price. |
| Spot price: The current market price of an asset, such as a currency or commodity, as opposed to its forward or future price. |
| Spread betting: A form of speculation that involves betting on the price movement of a financial market, such as a stock market index, without actually buying the underlying asset. |
| Spread: The difference between the bid and ask prices of a financial instrument, such as a currency pair or stock. |
| Stamp duty and SDRT (Stamp Duty Reserve Tax): A tax that is imposed on the transfer of ownership of certain securities, such as shares and bonds, in the UK. |
| Sterling Overnight Interbank Average rate (SONIA): A benchmark interest rate used to set the cost of overnight borrowing in the UK money markets, based on the average of the interest rates at which banks borrow sterling from one another. |
| STIBOR: Stockholm Interbank Offered Rate, is a reference rate, based on the average interest rate at which banks can borrow unsecured funds from other banks in the Swedish market. |
| Stock analysis: The process of evaluating a stock or a company's financial and operational performance, to determine its future potential and investment value. |
| Stock exchange: A marketplace where stocks and other securities are bought and sold, typically through a licensed and regulated organization. |
| Stock index: A measurement of a section of the stock market, typically consisting of a basket of stocks that are representative of a particular market or sector, used as a benchmark for measuring the performance of a portfolio of stocks or the overall market. |
| Stock market: A marketplace where stocks and other securities are bought and sold. The stock market is a place where investors can buy and sell shares of publicly traded companies. |
| Stock symbol: An abbreviation used to identify publicly traded companies and their stocks on a stock exchange, typically consisting of a combination of letters. |
| Stockbroking: The activity of buying and selling stocks and other securities on behalf of clients. |
| Stop order: A type of order to buy or sell a security at a specific price, or better, that becomes a market order when the specified price is reached. |
| Straddle: A strategy that involves buying a call option and a put option with the same strike price and expiration date. |
| Strike price: The price at which an option can be exercised. |
| Super-contango: A market condition where the futures price for a commodity is significantly higher than the expected future spot price. |
| Support level: A level at which a stock or other security's price tends to find support as it falls. |
| Synthetic replication: A method of replicating the returns of an index or other benchmark by using a combination of derivatives and other securities, rather than buying the underlying assets. |
| Tangible assets: Assets that have a physical form and can be touched, such as land, buildings, machinery, and equipment. They have value because they can be used to produce goods and services, and can be sold for cash or used as collateral for loans. |
| Technical analysis: A method of evaluating securities by analyzing statistics generated by market activity, such as past prices and volume. Technical analysts do not attempt to measure a security's intrinsic value, but instead use charts and other tools to identify patterns that can suggest future activity. |
| Ticker: A symbol assigned to a security traded on a stock exchange, used to uniquely identify and track the security. Tickers are typically a combination of letters and are used to identify stocks, options, and other securities. |
| Time decay (theta): The rate at which the value of an option decreases as the expiration date approaches. Theta is a measure of an option's time decay, and is typically quoted as the change in an option's value for each day that passes. |
| Time value: The portion of an option's price that is attributed to the amount of time remaining until the option expires. It represents the potential for the option to become more valuable as the underlying asset's price changes and the time remaining for the change to occur. |
| Total cost of ownership: The total cost of owning and operating an asset, including the purchase price, financing costs, operating costs, maintenance costs, and disposal costs. This is used to evaluate the financial feasibility of purchasing an asset and is used to compare different options. |
| Trading floor: A physical location where traders buy and sell securities, commodities, or other financial instruments. Trading floors are typically found in stock exchanges and other financial institutions, and are characterized by the presence of electronic trading systems, large screens displaying prices and other data, and a high level of activity. |
| Trading plan: A set of rules and guidelines that a trader or investor uses to make decisions about buying and selling securities. It can include things like what types of securities to trade, when to enter and exit trades, and how to manage risk. |
| Trailing step: A percentage by which a stop-loss or stop-limit order is adjusted in favor of the trade as the market price moves in favor of the trade. It allows the trader to lock in profits as the price moves in their favor, while also limiting their potential loss. |
| Trailing stop orders: A type of stop-loss order that adjusts based on the trading price of the stock. It works by setting a percentage or dollar amount away from the market price, and if the stock price moves in favor of the trade, the stop-loss price will also move with it, allowing the trade to lock in profits while limiting their potential
loss. This type of order is different from a traditional stop-loss order which is set at a fixed price and does not move with the market price.
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| Treasury stock: Stock that a company has repurchased and holds in its own treasury. It is the opposite of outstanding stock, which is owned by shareholders. Treasury stock is not considered outstanding and therefore does not entitle the holder to vote or receive dividends.
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| Trend: A general direction of a market or of the price of an asset, either upward or downward. It is important to identify trend to help traders and investors make decisions on when to buy, hold or sell an asset.
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| Trending shares: Shares of a company that are experiencing an upward trend in their value, or expected to experience an upward trend in value. These shares are often sought after by investors as they have the potential for strong returns.
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| Unborrowable stock: A stock that cannot be borrowed by investors or traders for the purpose of short selling. This can happen when there is a lack of supply of the stock available to borrow, or when the lender of the stock has restricted or prohibited the stock from being borrowed.
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| Unit: A measure of the quantity of a financial instrument or asset. The unit can be a share of stock, a bond, a currency, or any other financial instrument. It is a way to express the amount of an investment.
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| Unit trust: A type of investment fund that pools money from multiple investors to purchase a diversified portfolio of stocks, bonds, or other securities. Unit trusts are professionally managed and are often used as a way for individual investors to gain exposure to a diversified portfolio of assets.
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| Value at risk (VaR): A measure of the potential loss on an investment or portfolio over a given time period and at a given confidence level. VaR is used to estimate the likelihood that a portfolio's loss will exceed a certain amount.
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| Variable cost: Costs that change based on the level of production or activity. For example, the cost of raw materials used in manufacturing is a variable cost as it varies with the number of units produced.
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| Vega: A measure of the sensitivity of the price of an option to changes in volatility. It is the rate of change of an option's price with respect to changes in volatility.
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| VIX: The Chicago Board Options Exchange Volatility Index, also known as the "Fear Index," is a measure of the implied volatility of the S&P 500 index. It is used as a gauge for the level of fear or stress in the stock market.
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| Volatility: A statistical measure of the dispersion of returns for a given security or market index. It represents the level of risk associated with the price changes of a security or market. High volatility means the price of a security can change dramatically over a short period of time in either direction.
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| Volume: The number of shares or contracts traded during a specified period of time. It is used as a measure of activity in a market or for a particular security.
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| VWAP: The volume-weighted average price, is a measure of the average price at which a security has traded during a given period, taking into account both the price and the volume of shares traded.
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| Warrant: A financial contract that gives the holder the right, but not the obligation, to buy or sell a specific underlying asset, such as a stock or commodity, at a specified price and on a specified date. Warrants are usually issued by companies and are traded on stock exchanges.
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| West Texas Intermediate (WTI): A type of crude oil used as a benchmark in oil pricing. It is extracted from the Permian Basin in West Texas, USA. It is considered to be of higher quality and lower sulfur content compared to other types of crude oil.
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| Working order: An order to buy or sell a security that is placed with a broker or trading platform, but has not yet been executed. It remains active until it is either filled or cancelled.
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| Yield: The amount of return on an investment, expressed as a percentage of the investment's cost. It can refer to the return on a bond, the dividend on a stock, or the overall return on a portfolio.
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