General Glossary
A
Assets: Financial instruments or resources with economic value that can be traded, such as stocks, currencies, commodities, or indices.
B
Bonus: A promotional reward offered by brokers, often as extra trading capital or other benefits, incentivizing account opening or deposits.
D
Deposit Currency: The base currency used to fund a trading account, which serves as the standard for transactions and balance calculations.
I
Indicators: Tools in technical analysis used to interpret price movements and trends. Common indicators include RSI, MACD, and Bollinger Bands.
L
Leverage: A mechanism that allows traders to control a larger position size with a smaller amount of capital, amplifying potential gains and losses.
Lots: A standard unit of measurement in trading, representing a fixed quantity of an asset. Types include standard lots, mini lots, micro lots, and nano lots.
M
Margin Call: A broker's demand for additional funds to maintain open positions, triggered when an account's equity falls below the required margin level.
O
Orders: Instructions placed by traders to buy or sell financial instruments. Common types include market orders, limit orders, and stop-loss orders.
P
Pips: The smallest unit of price movement in forex trading, typically representing a change in the fourth decimal place of a currency pair's price.
S
Signal: A notification or indication based on analysis suggesting a potential trading opportunity, often delivered by technical indicators or experts.
Social Trading Features: Tools or platforms that allow traders to share strategies, discuss market insights, and copy trades from experienced traders.
Spreads: The difference between the bid (buy) and ask (sell) price of a financial instrument, representing transaction costs in trading.
T
Tools: Resources provided for traders to analyze the market, such as charting software, trading platforms, and automated systems.
Trading Hours: The specific times when financial markets are open for trading, varying by region and asset type.
W
Withdraw: The process of transferring funds from a trading account back to a trader's personal bank account or other payment methods.
Glosario Trading
A
Accumulation/Distribution Indicator: A volume-based indicator that measures money flow into and out of a security, helping identify buying or selling pressure.
After-Hours Trading: Trading activity that occurs outside standard market hours.
American Petroleum Institute (API): A trade association representing the U.S. oil and gas industry.
Anchored VWAP: A version of the Volume Weighted Average Price (VWAP) starting from a specific time, used to pinpoint key price levels.
API Crude Oil Stock Change: A weekly report indicating changes in crude oil inventory levels.
B
Bear Market Rally: A short-lived upward movement within an extended downward market trend.
Bearish Divergence: Occurs when the price makes higher highs, but a technical indicator, like RSI, makes lower highs, signaling potential trend reversal.
Bollinger Bands: A volatility indicator using a central moving average and two bands at standard deviation levels from the price.
Breakout: When price moves beyond defined support or resistance levels, often signaling trend continuation or reversal.
C
Candlestick: A charting method illustrating open, high, low, and closing prices over a specific time frame.
Commodity Channel Index (CCI): A momentum indicator measuring price deviation from its average.
Cup and Handle Pattern: A bullish chart formation resembling a teacup, suggesting continuation of an uptrend.
Currency Pair: The quotation of one currency against another in forex markets.
D
Donchian Channels: Bands based on the highest high and lowest low over a specified period, used to identify breakouts and trends.
Double Exponential Moving Average (DEMA): A type of moving average designed to reduce lag and react more quickly to price changes.
Dow Jones Industrial Average (DJIA): A stock market index tracking 30 large, publicly traded U.S. companies.
E
Earnings Yield: The ratio of earnings per share to the share price, often used as a valuation metric.
Elliott Wave Theory: A technical analysis approach that identifies price movement patterns in cycles called waves.
Engulfing Pattern: A candlestick pattern signaling potential reversals when one candle completely engulfs the previous one.
F
Fibonacci Retracement: Levels derived from Fibonacci ratios used to identify potential reversal zones during trends.
Float: The number of publicly available shares of a company's stock.
Fundamental Analysis: Evaluating securities by examining economic, financial, and other qualitative/quantitative factors.
G
Gann Fan: A charting technique using diagonal lines to predict support and resistance based on W.D. Gann's theories.
Golden Cross: A bullish indicator where a short-term moving average crosses above a long-term moving average.
Gross Profit Margin: A profitability ratio showing how much revenue exceeds the cost of goods sold.
H
Hammer Candlestick: A bullish reversal pattern with a small body and a long lower shadow.
Head and Shoulders Pattern: A chart pattern signaling a trend reversal, consisting of three peaks: two smaller (shoulders) and one larger (head).
High-Low Index: Compares stocks making 52-week highs versus lows to gauge market strength.
I
Ichimoku Cloud: A multi-component indicator providing insights on trend direction, momentum, and support/resistance.
Inside Bar: A two-bar candlestick pattern where the second candle is completely contained within the first.
Inflation: The rate at which prices for goods and services rise over time.
J
Japanese Government Bond (JGB): Debt securities issued by the Japanese government.
Jolts Report: A U.S. report detailing job openings and labor turnover, providing labor market insights.
K
Keltner Channel: Volatility-based bands around a central moving average.
Key Reversal: A price action pattern signaling potential market direction changes.
L
Line Chart: A chart connecting closing prices over a period, showing trends simply.
Linear Regression Channel: A technical tool with a regression line and bands indicating potential price ranges.
M
MACD (Moving Average Convergence Divergence): A trend-following and momentum indicator using moving averages.
Money Flow Index (MFI): A volume-weighted momentum indicator evaluating overbought or oversold conditions.
Momentum Indicators: Tools assessing the rate of price changes to identify strength in trends.
N
Nano Lot: The smallest tradeable lot size, representing 100 units of a currency.
Net Profit Margin: A profitability ratio showing the percentage of revenue retained as profit after expenses.
Neutral Market: A market without significant movement in either direction.
O
On-Balance Volume (OBV): A momentum indicator linking volume to price movement.
Oscillator: A technical tool measuring momentum by oscillating between two extremes, indicating overbought or oversold conditions.
P
Pivot Point: A key price level used for predicting market movements.
Parabolic SAR: A trend-following indicator showing potential entry/exit points using dots above or below price bars.
R
Relative Strength Index (RSI): A momentum oscillator measuring speed and change of price movements.
Resistance: A price level where upward price movement tends to slow due to selling pressure.
S
Stochastic Oscillator: Measures a security's position relative to its high-low range over a period.
Support: A price level where downward price movement is likely to pause due to buying interest.
T
Time Value of Money: The concept that money now is worth more than the same amount in the future due to earning potential.
Trendline: A line indicating the direction of a trend by connecting significant price points.
V
Volatility: A statistical measure of price variation over time.
VWAP (Volume Weighted Average Price): The average price of an asset weighted by volume traded, used as a benchmark.
Z
Z-Score: A statistical measure indicating how far a value is from the mean, useful for assessing outliers.
Zig Zag Indicator: Filters out minor price changes to highlight primary trends.