AAL is the ticker symbol for the American Airlines Group.
AAPL is Apple's ticker.
ABBV is the ticker symbol for AbbVie Inc.
ADBE is the ticker symbol for Adobe Inc.
AEX is the main stock index of the Netherlands, which includes the 25 largest companies by capitalization, whose shares are listed on the Euronext Amsterdam exchange.
Affiliation is the joining of a company to another organization, which from that moment acts as a parent for the first. When trading on financial markets, affiliation can be considered within the framework of mergers and acquisitions (M&A, Mergers and Acquisitions), which may cause changes in stock prices due to market redistribution.
Algorithmic trader is a trader used in the operation of algorithmic and robotic trading systems.
Algorithmic trading is a method of working in financial markets using algorithms - automatic robotic programs that are able to fully or partially make trading decisions.
AMZN is the ticker symbol for Amazon.
Ask is the price in the order book at which a trader can open a buy trade.
Assets - in accounting, this is a part of the balance sheet that characterizes the composition and value of the property owned by the enterprise at the moment. In other words, these are the resources that belong to the enterprise: buildings, equipment, materials, intermediate and finished products, and others.
ASX (Australian Securities Exchange) - Australian Stock Exchange - the main stock and futures exchange in Australia.
ATR - Average True Range - an indicator that shows the strength or weakness of the price movement (volatility).
AUD is the ticker for the Australian dollar.
Averaging is a position management method in which the position volume increases as the price moves in the direction against the deal, i.e. as the loss on the position increases. Averaging is one of the main causes of large losses and is not recommended for use (English averaging). There is also a saying “Losers average losers” (losers average losing trades).
AXP is the ticker symbol for American Express.
BA is the ticker symbol for Boeing.
BAC is the ticker symbol for Bank of America Corp.
Backtest - testing of trading systems on historical data.
Balance sheet is a set of information presented in tabular form about the value of property and the volume of obligations of the company. The balance sheet is a form of financial statements that gives an idea of the financial condition of the company: the success and stability of the business, the amount of debt burden, the likelihood of bankruptcy. As a rule, the balance sheet is prepared at the end of the quarter or year.
Bar - a vertical element of the price chart, reflecting 4 prices (opening, high, low, closing) for a certain time period (minute, hour, day, etc.).
The bar spread is the difference between the high and low of the candle.
Barrel is a unit of measure for the volume of oil, equal to 42 gallons or approximately 159 liters. A barrel used to measure other solids or liquids may differ in volume from a "petroleum" barrel: a standard US barrel holds 31.5 gallons, or about 119 liters; English barrel holds 36 English gallons, which is equivalent to 163.7 liters.
Base currency - in a currency pair, the base currency is the first, i.e. is in the numerator.
Basis point is a value equal to one hundredth of a percent, or 0.01%. Basis points are used in news reports about the change in indicators, measured as a percentage. For example, if the key interest rate in the US economy was 1.5% and then decreased by 25 basis points, then its new value is 1.25%.
Bear - a market participant who expects a price drop. A bear market is a falling market.
BEL 20 (Belgium 20) is the most famous stock index in Belgium. The index includes the 20 largest companies by capitalization, whose shares are traded on the Euronext Brussels (EBR) stock exchange.
Benchmark - an indicator that investment strategies, managers or funds strive for. A benchmark index or instrument that shows the component of a country's economy. For example, in America the benchmark is the S&P 500 index, in Russia - the RTS and MICEX indices.
Bid - the price in the order book at which a trader can open a sell trade.
BIIB is the ticker symbol for Biogen Inc.
Bill of exchange
Bill of exchange - a security that obliges a person to pay another person a specific amount within a specified period. The bill can be used as a means of payment and settlement, as well as act as a means of obtaining a loan. A promissory note is a security, which makes it possible to carry out purchase and sale transactions with it on the stock market.
BKNG is the ticker symbol for Booking Holdings Inc.
Blue chips are securities of large, liquid and reliable companies with stable returns. The term itself came to the financial markets from poker, in which blue is the color of the most valuable chip.
A bond is a debt security issued by a government or corporation. The most conservative instrument after a bank deposit.
Bovespa (BVSP) is a Brazilian stock index traded on the São Paulo Stock Exchange (Bolsa de Valores de São Paulo). The index consists of the 50 largest companies in Brazil (the so-called "blue chips") and plays the role of one of the key macroeconomic indicators throughout Latin America.
Broker - an institutional and regulated intermediary in the trading of financial instruments.
Brokerage is the implementation of purchase and sale transactions with securities on the stock exchange on behalf of their present or future owner. As a rule, when transferring securities for brokerage, a power of attorney is issued.
Brokerage association - an association of brokers-members of the exchange, which is officially registered on the exchange for the purpose of joint execution of client orders.
Bull is a market participant who expects the price to rise. A bull market is a rising market.
Buy Limit - a pending order to buy, which is below market prices.
Buy-stop - a pending order to buy, which is above market prices.
C is the ticker symbol for Citigroup Inc.
CAC 40 (fr. Cotation Assistée en Continu) is the main stock index of France and one of the key stock indexes of the entire European Union. The index consists of the 40 largest companies by capitalization, whose shares are traded on the Euronext Paris stock exchange.
CAD is the ticker symbol for the Canadian dollar.
Candle is a vertical element of a price chart containing 4 prices for a certain time period. A candlestick consists of a body, which is formed by the opening and closing prices, as well as shadows - upper and lower. The size of the body and shadows is constantly changing. There may be candles without shadows at all or with a very narrow body. The candlestick chart looks like this. Candles are painted green on it, where the trading period ended with growth. Red - with a fall. It is also possible to color in white and black, respectively.
Capitalization - the value of a public company, calculated as the product of the quote of the company's ordinary shares by the total number of ordinary shares in circulation. Capitalization reflects both the real state of the company's affairs and the expectations of investors in the market regarding its future financial success, because investors often purchase shares, calculating the company's development potential.
Carry trading is a type of long-term trading in which profit is earned on the difference in interest rates of the two countries whose currencies are involved in the transaction.
CAT is the ticker symbol for Caterpillar Inc.
The Central Bank is an organization that is responsible for the formation and implementation of monetary policy, ensuring the functioning of the payment system and monitoring the activities of the financial sector of a country or group of countries. The central bank has the right to issue banknotes of the national currency, thanks to which it regulates the money supply in the economy. The Central Bank is the lender of last resort, that is, it provides commercial banks and other financial institutions with monetary liquidity in emergency situations or in the absence of other creditors.
CFD (Contract for Difference) is a financial instrument that can be traded on price changes. For example, if when buying a share you become the owner of this share (and a shareholder of the company whose security you purchased), then when buying a CFD on a share, you simply buy its “price”, with the possibility of further sale at a higher cost, but the share you don't buy from the company.
CHF is the ticker for the Swiss franc.
China A50 is one of the most respected stock indexes that reflect the dynamics of the Chinese economy. The index is compiled by FTSE Russell and includes the country's 50 largest companies located on the mainland of China.
CL is the ticker symbol for Colgate-Palmolive.
CME (Chicago Mercantile Exchange) is a Chicago Mercantile Exchange where financial derivatives are traded - futures and options.
Coefficient - the ratio of two quantities or a multiplier for a variable. The calculation of ratios is of great importance in financial markets when analyzing the financial statements of companies. Based on a comparison of coefficients based on data from different companies or securities, an investor can decide to invest in the most attractive of them.
Commission - a trader's payment to his broker for services.
Consolidation is another name for flat. The period when the price does not show trend movements.
Convergence is a mirror image of divergence: the price goes down, but the indicator can no longer, it starts to grow.
Convertibility is a property of an asset that reflects the ease of its convertibility into another asset. For example, a high degree of convertibility of the US dollar into euros indicates the ease of exchanging one currency for another; and the low degree of convertibility of the Nizhny Novgorod apartment for Apple shares indicates the practical impossibility of making such a deal.
Correlation - the relationship of the movement of individual instruments.
Costs - fees for trading in financial markets. These include commissions, spreads, swaps, taxes.
A counterparty is the other party to a transaction.
CPRT is the ticker symbol for Copart Inc.
CRM is the ticker for Salesforce.com.
Cross rate is a financial instrument that does not contain the US dollar (USD). However, transactions with cross-rates are still carried out with the participation of the US dollar.
CSCO is the ticker symbol for Cisco Systems.
Currency - the monetary unit of the country.
Currency devaluation - a decrease in the real exchange rate of the national currency in relation to other currencies. For example, a change in the USDNOK exchange rate from NOK 9 per US dollar to NOK 12 is a devaluation of the Norwegian krone against the US dollar. Devaluation leads to a relative increase in the cost of imports and an increase in the income of exporters, expressed in national currency.
Currency pair - a financial instrument in which the value of one currency is expressed in units of the second.
Increase in the real exchange rate of the national currency in relation to other currencies. For example, a change in the USDNOK exchange rate from NOK 9 per US dollar to NOK 6 is a revaluation of the Norwegian krone against the US.
Currency revaluation - an increase in the real exchange rate of the national currency in relation to other currencies. For example, a change in the USDNOK exchange rate from NOK 9 per US dollar to NOK 6 is a revaluation of the Norwegian krone against the US dollar. The revaluation leads to a relative reduction in the cost of imports and a decrease in the income of exporters, expressed in national currency.
CVX is the ticker symbol for Chevron Corp.
DAX (German: Deutscher Aktienindex) is a key stock index in Germany and one of the most important stock indexes in the European Union. The index is calculated by the exchange organization Deutsche Börse AG and includes the 30 largest companies in Germany by capitalization
Daytrader - a trader who makes transactions, as a rule, within a day, without transferring them to the next trading session or day.
Dealer - a market participant acting as a counterparty in a transaction with customers.
Decentralized market - a market where trading takes place not in one physical place, but on different trading platforms.
Deflation - a decrease in the general price level or an increase in the real value of money. The causes of deflation can be: a decrease in the amount of money in circulation; a fall in aggregate demand for goods and services with a non-decreasing supply; an increase in aggregate supply with a non-increasing demand; reduction in the cost of goods caused by increased productivity; a decrease in prices for imported goods and services due to the revaluation of the national currency. Deflation is said to hurt the economy, as falling prices reduce business income and further incentives for economic development. The opposite of deflation is inflation.
Demand - the desire and ability of a participant to buy an instrument at a certain price.
Deposit - the amount of the account on which the trader conducts his trade in financial instruments.
Depreciation is a gradual decrease in the value of fixed assets of an enterprise due to their wear and tear. In other words, the physical or moral depreciation of property, which is expressed in money.
Derivative - a derivative financial instrument such as a futures, forward, or option.
Direct quotation is a quotation method in which the US dollar (USD) is in the numerator. Directly quoted currency pairs include USDCAD, USDCHF, USDJPY, etc.
Discretionary analysis - is also called intuitive trading. A way to analyze price movements using logic, without the use of strict rules and technical indicators.
Divergence - occurs when the price rises and the indicator moves down.
Diversification - the distribution of risks by markets, instruments, strategies.
Dividend - part of the profits of a joint-stock company, which is subject to distribution among the owners of securities in proportion to their shares in the company. Dividends are one of the two key investment reasons for acquiring shares in public companies (the second reason is the increase in share price over time). The dividend is paid once in a period (quarter, year), which is predetermined by the company. Dividends can be paid either in cash or in shares of the company.
Dow Jones Industrial Average (DJI) - The Dow Jones Industrial Average is one of the most famous American stock indices, which includes the 30 largest US companies. The index is available for trading in many terminals in the form of CFD contracts or in the form of derivatives - futures and options.
Double bottom - a graphical analysis figure that is formed when, over a certain period of time, the price twice reached a certain lower extremum (extreme point) and then rose to a higher level. The double bottom is a bullish pattern and signals the beginning of an uptrend.
DOW is the ticker symbol for Dow Inc.
Drawdown - a loss received during the time from reaching the historical peak of the yield curve to the historical minimum of the yield curve.
EA is the ticker symbol for Electronic Arts.
EBAY is the ticker symbol for eBay Inc.
Emerging markets - emerging markets (for example, Russia, India, Latin America, etc.)
Equity - or "yield curve". A graph that shows the performance of an increase (or decrease) in the yield curve of a financial strategy or investment portfolio.
EUR - European currency ticker - euro.
Euro Stoxx 50
The Euro Stoxx 50 is a stock index that includes 50 Eurozone blue chips. The index is calculated by Stoxx and is owned by the key German stock exchange, Deutsche Borse. The Euro Stoxx 50 does not include UK companies. Its membership consists of companies from 11 countries, namely Germany, Spain, France, Portugal, Belgium, Austria, Italy, the Netherlands, Finland, Ireland and Luxembourg.
Eurobond - a bond that is issued in a currency that is foreign to the issuer. For example, if a company registered in Russia issues bonds in US dollars or Vietnamese dongs, they are called Eurobonds. The prefix "euro" today does not carry a semantic load (does not apply to the currency of the eurozone), except as a reminder that the first eurobonds appeared in Europe, which is why they began to be called that way.
Exchange is a centralized financial market where securities (stocks), bonds, derivatives and other financial instruments are traded.
Exchange rate (quotation) - a specific price at which a security is traded on a specific exchange at a specific point in time. The exchange rate currently reflects the price at which you can buy or sell a security right now.
Expert advisor - a trading robot, a computerized trading algorithm that runs on the platform and performs all or some trading actions for the trader. Expert Advisors are created in programming languages (popular languages plus MQL 4/5), as well as in visual constructors, for example, Visual JForex. Visual programming of a trading robot does not require programming skills from a trader.
Exposure is the net volume of a position towards long or short. For example: long 2000 EUR/USD and short 1000 EUR/JPY give an exposure of 1000 EUR.
F is the ticker symbol for Ford Motor Company.
FB is the ticker for Facebook.
FDX is the ticker symbol for FedEx Corporation.
A financial participant is a so-called informed player whose tasks include investments, speculation and other professional activities related to the markets. These include hedge funds, broker-dealers, central banks, and so on.
FIS is the ticker symbol for Fidelity National Information Services.
Flat - literally "flat", the state of the market in which there is no pronounced trend.
Forward or forward contract is a bilateral obligation, the subject of which is the purchase and sale of a real asset at a specific point in time for a specific price. Unlike futures, the forward is more commonly used as an over-the-counter instrument and is less standardized.
Forward test is a test of a trading strategy that simulates performance on "future" time ranges. As a rule, testing is divided into backtest and forward test. The backtest shows the initial statistics on the TS, while the forward is needed to confirm the trend (profitable or unprofitable) on the backtest.
FOX is the ticker symbol for Fox Corporation (Class B shares).
The FTSE 100 (Financial Times Stock Exchange Index) is the most famous and sought after UK stock index. The index includes the 100 largest companies by capitalization traded on the London Stock Exchange. In Russian, the FTSE 100 index is also known as "Futsy 100".
FTSE MIB is Italy's most famous stock index, which includes the 40 largest companies in the country, whose shares are traded on the Milan Stock Exchange (Milano Italia Borsa, MIB).
Fundamental analysis is a method of analyzing price movements and forecasting by considering the macroeconomic indicators of countries, the state of their economies.
A future or futures contract is a contract according to which the seller of the futures undertakes to deliver the underlying asset to the buyer of the futures at a specified price on a specific date. For example, if you conclude a futures contract for the supply of 100 barrels of oil on June 30 at a delivery price of 40 US dollars per barrel, then regardless of the market price on June 30 (it can be, for example, 5 or 90 US dollars per barrel) , the contract must be executed at a price of 40 US dollars per barrel in the agreed volume of 100 barrels. Unlike forward, futures is an exchange instrument and is more standardized.
Gap - a price gap that occurs, as a rule, in the foreign exchange market and is associated with the absence of trading on Saturday and Sunday, or with the release of significant news. Examples of gaps on a daily chart and in an increase on an hourly chart.
GD is the ticker symbol for General Dynamics.
GE is the ticker symbol for General Electric.
GM is the ticker symbol for General Motors.
Goodwill - a form of intangible assets of a company that cannot be measured materially. Goodwill may include: goodwill of the company; established relationships with consumers and suppliers; access to promising markets. Goodwill may indicate the unrecorded value of a company that affects the value of related securities.
GOOG is the ticker symbol for Alphabet Inc. (class C shares).
GOOGL is the ticker symbol for Alphabet Inc. (class A shares).
Graphical analysis is a method of price movement analysis and forecasting using graphical figures on the chart, such as “triangle”, “pennant”, “flag”, etc.
GS is the ticker symbol for Goldman Sachs Group.
Hedge - a person involved in risk insurance. The hedger can be a company, bank or other individual. In financial markets, hedgers are often referred to as specialists in the futures markets, who are engaged in insuring the client's risky positions by purchasing derivative financial instruments (futures, forwards, options).
A hedge fund is a financial market participant whose main goal is to make a profit on various trading floors of the world for themselves and their clients.
Hedging - a system of measures to insure financial risks. Hedging involves opening positions in one market in order to minimize the risk of an unfavorable outcome for positions opened in other markets. The following can be considered as risks: currency — changes in the exchange rate; credit - the inability of customers to pay their obligations; price - change in prices of acquired assets; geopolitical - a change in political sentiment in the country in relation to other countries; other.
High-frequency trading is a type of trading where trades can be opened and closed within fractions of a second. Trading robots and algorithms are used for HFT, and companies that deal with HFT locate their offices as close as possible to the servers of brokers and dealers so that the execution error is minimal.
Holding is a group of companies in which there is an organization (parent company) that owns other companies of the group and controls their activities. Ownership of the company occurs through the ownership of company shares, the share of which allows the parent company to exercise management and control functions in it. The holding may consist of diversified and unrelated companies.
HPE is the ticker symbol for Hewlett Packard Enterprise.
Hang Seng (Hang Seng Index - HSI) is Hong Kong's most significant stock index. The index consists of 34 largest companies by capitalization of the Hong Kong Stock Exchange (Hong Kong Stock Exchange), whose weight is more than 65% of the total market capitalization.
IBEX 35 (Iberia Index) is the main stock index in Spain. The index consists of 35 largest companies by capitalization. The index is calculated on the Madrid Stock Exchange (Spanish: Bolsa de Madrid, BM).
IBM is the ticker symbol for International Business Machines.
Index - an indicator of the average value of financial instruments. For example, the S&P 500 index includes the 500 largest companies in America (thus showing the strength or weakness of the US stock market), and the US dollar index is the average value of the dollar against major currencies.
Inflation - an increase in the general price level or a decrease in the real value of money. The causes of inflation can be: an increase in the amount of money in circulation; growth of aggregate demand for goods and services with a non-increasing supply; reduction in aggregate supply with no decrease in demand; rise in prices for imported goods and services due to the devaluation of the national currency. It is believed that inflation of 1.5-2% per year is typical for a "healthy" economy. Lower inflation limits economic incentives to develop entrepreneurship. Higher inflation contributes to a significant depreciation of money. The opposite of inflation is deflation.
INTC is the ticker symbol for Intel Corp.
Investment bank - a financial institution whose main focus is to provide companies, political organizations, large and private investors with access to investment products on stock exchanges.
Investments - long-term transactions (from a year or more) in the financial markets, the real estate market or any other platform. Investments are divided into active and passive.
Investor - a market participant who conducts long-term trading.
Issue of securities
The issue of securities is a legally regulated activity for the placement of securities in financial markets. The purpose of the issue of securities is to raise additional funds for the implementation of promising projects or to cover the existing debt. As a rule, the issue of shares is made to meet the current and nearby needs of the company, while the issue of bonds involves long-term borrowing.
An issuer is a company or corporation that issues shares or bonds in its own name.
JNJ is the ticker symbol for Johnson & Johnson.
JPM is the ticker symbol for JPMorgan Chase & Co.
KO is the ticker symbol for The Coca-Cola Company.
KOSPI (Korea Composite Stock Price Index) is a South Korean stock index. The index consists of approximately 750-800 companies - all companies whose shares are traded on the Korea Exchange (Korea Exchange, KRX).
Leverage - leverage, broker's funds, thanks to which a trader can open a position with a volume exceeding his margin.
Liabilities - in accounting, this is a part of the balance sheet that characterizes the composition and volume of debts and obligations of the enterprise at the moment. In the column of liabilities there are: borrowed funds, deferred tax liabilities, accounts payable, deferred income and more.
Liquidity is the volume of a traded asset currently available on the market.
Liquidity consumer is a market participant, usually a trader, who consumes liquidity from the order book. Liquidity is consumed by market orders.
Liquidity supplier is a market participant, usually a market maker that provides liquidity to other trading participants. Liquidity deliveries are the placement of limit orders.
Listing - the inclusion of shares of a particular company in the list of securities that can be placed on a particular exchange and participate in exchange trading. Listing is a procedure for preparing securities and transparency ("openness") of the company's activities to the requirements established by the exchange.
LMT is the ticker symbol for Lockheed Martin Corp.
Long - a "long" transaction, or a transaction to buy.
Lot - volume per trade equal to 100,000 units of the underlying instrument. For example, buying one lot of EUR/USD would equal buying 100,000 EUR. In digital terms, it is measured as 1.0 (100,000 base units), 0.1 (10,000 base units), 0.01 (1,000 base units).
MA is the ticker symbol for Mastercard Inc.
MACD (Moving Average Convegence/Divergence - Convergence and divergence of moving averages) is a technical oscillator that shows the distance between two moving averages.
Macroeconomics is an economic model that includes all sorts of factors - from supply and demand for currencies, to countries' GDP, government debt or import/export volumes. John Maynard Keynes is considered to be the founder of the modern macroeconomic model.
Major - actively traded currency pair with direct or reverse quotation.
Margin - trader's security deposit to the trading account.
Margin call - literally “call of a broker with a request to the client to replenish the margin”; a trading situation in which a trader does not have enough funds on his balance sheet to maintain open positions.
Market conditions are the situation in the market at a particular moment in time. The market situation includes the following quantities: the ratio of supply and demand for selected assets; market quotes of assets; asset trading volumes; other.
Market Depth - the volume of the market for the selected asset at a specific price at a specific point in time. The depth of the market reflects the current state of supply and demand and shows how large a transaction can change the price.
Market depth - rarely used in financial markets and mostly acts as a synonym for the term "market depth".
Market inefficiency is a certain characteristic of the market on which there is an opportunity to make money. As a rule, markets are efficient, in this regard, the search for market inefficiencies is the main task of any trader.
Market order is an order to open or close a position at current, market prices.
A market-maker is a large market participant who is obliged to provide liquidity and receives commissions for his services. Market makers, as a rule, are large world banks.
MCD is the ticker symbol for McDonald's Corp.
MCO is the ticker symbol for Moody's Corp.
Mechanical trading is trading using strict technical rules. Most often, such systems use indicators and computer algorithms.
Meta-order - a very large order, usually owned by large players.
Mirror level - a support level, after breaking through which it becomes a resistance level, or vice versa.
MRK is the ticker symbol for Merck & Co.
MS is the ticker symbol for Morgan Stanley.
MSFT is the ticker symbol for Microsoft Corp.
MU is the ticker symbol for Micron Technology.
NASDAQ is a stock index of approximately 3,000 high-tech companies.
NDAQ is the ticker symbol for Nasdaq, Inc.
NFLX is the ticker symbol for Netflix Inc.
The Nikkei 225 (Nikkei 225 Stock Average) is Japan's key stock index, which includes 225 of the country's most traded companies, ranked by capitalization. The index is calculated on the Tokyo Stock Exchange (TSE / TYO).
NKE is the ticker symbol for Nike, Inc.
Nominal yield - return on investment without inflation.
NVDA is the ticker symbol for Nvidia Corporation.
NYSE - (English New York Stock Exchange) New York Stock Exchange. The largest stock exchange in America and the world.
NZD is the ticker for the New Zealand dollar.
Offer - the desire and ability of the participant to sell the instrument at a certain price.
OHLC prices are four prices displayed on candlesticks or bars. These are: opening (open), maximum (high), minimum (low), closing (close). On a bullish bar (growth bar), the closing price is always higher than the opening price. On a bearish (falling) bar, the closing price is always lower than the opening price.
Open Interest - is also called the “Sum of Open Positions”. Open interest is the sum of open futures or options contracts that have not been settled. In a word, open positions. OI is a popular indicator among traders. Information is taken from the Chicago Mercantile Exchange - CME (Chicago Mercantile Exchange).
Optimization is the process of adjusting various variables in a trading strategy. This can be a stop loss level, take profit level, or setting the indicator parameters. Optimization is part of the backtest process.
An option is an instrument that gives its owner the right, but not the obligation, to buy or sell a financial instrument at a specified rate in a certain period of time.
Order - a trader's application to open a position.
Order book - all stop and limit orders for the purchase or sale of an instrument held by the dealer at a certain point in time.
Order flow - a set of all transactions that enter the order book and that affect pricing.
Oscillator - an indicator limited by the levels of 0% and 100%. Oscillators are called leading indicators because they often reach extreme values before price reversals. Profitable oscillator signals are most likely in flat markets. However, trends do not leave oscillators a chance for profitable signals, since the trending oscillator spends most of its time in the extreme zone.
Oscillators include the following indicators: Stochastic, Williams’% R, RSI, Momentum and some others. Even the MACD can be referred to as oscillators, although it formally does not have upper and lower swing limits.
Overbought - this value is usually given when the price of a financial instrument has risen a lot. Overbought refers to the “overheating” of the price. As a rule, overbought signals a stop or a price reversal down. Two indicators to help with overbought conditions are RSI and Stochastic.
Overfitting - or re-optimization of a trading strategy - adjusting the parameters of a strategy on historical testing, in which the strategy shows profitable results on history, but, as a rule, "breaks" in real trading.
Overnight - percentage of the transaction volume held by the broker for transferring the position to the next day. This percentage depends on the interest rates of the countries whose currencies are involved in the trader's transaction.
Oversold - here everything is the same as with overbought, only mirrored. If the price of a financial instrument has passed a significant downtrend, then it is considered oversold and undervalued. Oversold signals buys. Measured by RSI and Stochastic indicators.
Pattern - a price model or a model formed by indicator readings.
Pending order is an order to open or close a position at prices that are far from the current market prices.
PEP is the ticker symbol for PepsiCo Inc.
PFE is the ticker symbol for Pfizer Inc.
PG is the ticker symbol for Procter & Gamble.
Pip is the smallest possible price move in financial markets. For example, if a currency pair has the following quote entry: 1.26534, then 1 pip represents a value of 0.00001. A quote change from 1.10003 to 1.10009 is equivalent to its growth by 6 pips. In the USDJPY pair, a pip is calculated as 0.001. With the help of pips, it is possible to determine the slightest changes in the quotes of financial assets.
PM is the ticker symbol for Philip Morris International.
Pocket - traded financial instruments with an individual trader / fund in a certain period of time.
Price action - literally the behavior of the price, a method of analyzing charts of financial instruments without indicators, based on the search for continuation and reversal patterns of the trend, formed by one or more bars (candlesticks). Known Price Action patterns: pin bar, inside bar, DBHLC / DBLHC, outside bar (engulfing), etc. The method is similar to Japanese candlestick analysis.
Profit - profit received in the financial markets as a result of a successful transaction or transactions.
Profit factor - the ratio of total income to total loss.
Profitability is an indicator of the efficiency of economic activity, showing the degree of return on investment. At the corporate level, profitability indicators are used to calculate the return on investment in promising projects. A private trader can calculate profitability ratios for different trading strategies.
Profitability is an indicator of the efficiency of economic activity, showing the degree of return on investment. At the corporate level, profitability indicators are used to calculate the return on investment in promising projects. A private trader can calculate profitability ratios for different trading strategies.
Promotion - a security related to a particular company, which allows you to receive dividends to the owner of this share.
Prop trading is a type of activity in the financial markets, when a company works with its own capital (without attracting investor money), and also allows private traders to cooperate with them, selecting the best for the main staff.
PSI 20 (Portuguese Stock Index) is a stock index in Portugal, which includes the 20 largest companies by capitalization, whose shares are traded on the Euronext Lisbon stock exchange.
PSX is the ticker symbol for Phillips 66.
PYPL is the ticker symbol for PayPal.
Pyramiding - a gradual increase in the volume of a working profitable position.
QCOM is the ticker symbol for Qualcomm.
Quantitative trading is a method of trading in financial markets when algorithmic strategies, high-frequency and arbitrage strategies are used.
Quantum - is the name in the world of trading of mathematicians, programmers or physicists who work in investment companies in order to develop trading robots or algorithms.
Quota is a method of quantitatively limiting the production or import of goods into the territory of a state. In financial markets, quotas are often referred to as the operation of cartels that regulate the extraction of oil or the production of agricultural commodities (such as sugar). In this case, an increase in the extraction/production quota contributes to an increase in the supply of goods, and vice versa.
Quote - the price of an asset.
Quote currency - in a currency pair, the second currency is the quote currency, i.e. is in the denominator.
Rally - steady, strong and impulsive trend up or down.
Real return - the return on investment adjusted for inflation.
Recovery factor expresses the ratio between the average annual return and the maximum drawdown.
Renko - a way to display a chart in order to filter out market noise.
Resistance is a horizontal or sloping price level that holds the price and prevents it from rising further.
Reverse quotation is a quotation method in which the US dollar (USD) is in the denominator. Back quoted currency pairs include EURUSD, GBPUSD, AUDUSD, NZDUSD.
A risk manager is a person (or algorithm) who is responsible for the possible risks associated with portfolio investments.
RL is the ticker symbol for the Ralph Lauren Corporation.
Rollback - price correction, temporary movement of quotes against the main trend.
Russell 2000 (RUT) is a stock index that includes US public companies ranked from 1000 to 3000 by capitalization. It is also called the "small cap index" because it does not include leading companies.
The Russell 3000 is a stock index that includes the top 3,000 US public companies by capitalization. The index covers almost the entire market of US public companies.
The Russell 3000E (Russell 3000 Extended) is an "extended" Russell 3000 stock index. It covers virtually all US stocks except those (1) that are worth less than $1, (2) that are traded OTC, and (3) that are foreign shares.
The S&P 500 (SPX, Standard & Poor's 500) is a US stock index that includes the 505 largest public companies by capitalization whose shares are listed on US stock exchanges. The index is available for trading in many terminals in the form of CFD contracts or in the form of derivatives - futures and options.
SBUX is the ticker symbol for Starbucks Corp.
A scalper is an active intraday trader who uses scalping as a trading approach..
Scalping is a type of short-term intraday trading in the financial markets, characterized by a high frequency of transactions and their small size.
A security is a document certifying the right of its owner to a share of the total capital, which was received as a result of the initial placement of securities. In other words, a security shows how much of the organization's capital a particular person owns and under what conditions he can receive this capital. Securities include: shares, bonds, bills, bank savings books, investment shares, savings certificates, checks, depositary receipts and others. The rights conferred by a security to its owner are valid only if it is presented.
Sell - the sale of a financial asset, a deal to sell.
Sell-limit - a pending order to sell, which is above market prices.
Sell-stop - a pending order to sell, which is below market prices.
Setup - a price model suitable for making a deal.
Shareholder is the owner of shares in a joint-stock company. A shareholder is a co-owner of a joint-stock company and has the right to receive dividends (profit from the results of its activities).
Sharpe Ratio is an indicator of the effectiveness of a trading portfolio, a systematic strategy, a trading algorithm. The use of the Sharpe ratio in Forex algorithmic trading is as the ratio of the average annual return to the annual standard deviation.
Short - literally “short deal”, a deal to sell.
Slippage - the absence of quotes at the given price levels, associated with the sparsity of the order book.
SMI (Swiss Market Index) is the main stock index in Switzerland. The index consists of the 20 largest companies in the country by capitalization, whose shares are traded on the Swiss Exchange (Swiss Exchange, SWX).
Speculation is a kind of noble activity in the financial markets, which consists in making a profit on the difference in prices for financial assets.
A speculator is a type of noble participant in the financial markets who engages in speculation.
SPGI is the ticker symbol for S&P Global Inc.
Spot - type of settlement between the buyer and the seller, when the transaction is made immediately, unlike futures or options.
Spread - the distance between the Bid and Ask prices.
Statement - statistics of trading results of a trader or fund.
A stock or securities market is an exchange (a physical location such as Wall Street and the NYSE) where transactions are made to buy, sell, or publicly offer securities and other instruments.
Stock market - a centralized exchange market where shares of companies of a certain country are traded. Famous stock exchanges: New York - NYSE, NASDAQ; London - LSE; Tokyo Stock Exchange, etc.
Stop-loss - a pending order that fixes the loss planned by the trader.
A subordinated bond is a debt security issued by a commercial organization that ranks below other securities in the order of payment in the event of bankruptcy or liquidation of the organization. In other words, in case of bankruptcy or liquidation of an organization, payments are first sent to the shareholders of the company, and only after (in the case of a positive balance) to holders of subordinated bonds. Unlike an ordinary bond, which is considered one of the most reliable securities, a subordinated bond is a more risky security due to its unsecured nature. There are fewer requirements for issuing subordinated bonds than for ordinary bonds. Subordinated bonds offer higher returns than conventional bonds due to their increased risk.
Support is a horizontal or sloping price level that holds the price and prevents it from falling further.
Swap - see Overnight.
System trading is trading in which entries and exits from transactions are carried out strictly according to previously set rules. No intuitive or other trade management methods are allowed. System trading, although it can be used manually, but most often, such approaches are automated and delegated to the computer.
T is the ticker symbol for AT&T Inc.
Take profit - literally “take profit”, a pending order that fixes the profit planned by the trader.
Technical analysis - a way of analyzing price movements and forecasting using technical indicators.
Technical indicator - a mathematical formula into which historical prices and/or volumes are substituted, in the form of lines, histograms, dots, etc., located on the price chart. Technical indicators show the trader the direction of the market, entry points, measure volatility, etc.
Tick - updating the price of an instrument traded on the exchange. Unlike a pip, a tick shows not a unit of change in the quote, but the very fact of a change, which can occur even by several pips if there are no counter transactions between price levels. For example, if the market is updating the price from 105.005 to 105.008, bypassing the levels 105.006 and 105.007 (there were no volumes), then we say that the price has changed by 3 pips per 1 tick.
Ticker - a letter code (abbreviated name) of an exchange or over-the-counter instrument. For example: EUR (Euro), BRN (Brent oil), AAPL (Apple), MSFT (Microsoft), etc.
Timeframe - a time period of price movement, reflected on the charts as a single vertical element.
TMUS is the ticker symbol for T-Mobile US.
Trader - literally "merchant", a participant in financial markets, seeking to earn on the difference in prices.
Trading platform is software for a trader on which you can analyze charts and make trades.
A trading session is a period of time within a trading day when a particular financial center or region is active. There are 3 main sessions: Asia-Pacific, London (European) and New York (American).
A trading system is a set of trading rules according to which transactions are made in the market.
A trading terminal is a program, or some kind of software, where a trader makes transactions to buy or sell financial instruments. The most popular trading terminals: MetaTrader 4, 5, Quik, JForex.
Trailing stop is a stop loss level that automatically follows the price movement at a distance specified by the trader in points.
A transaction is a transaction between two participants in financial markets.
A trend is a stable direction of price movement. Also called a trend. The direction of trends is determined using trend indicators, for example: SMA, EMA, MACD and others.
TSLA is the ticker symbol for Tesla, Inc.
TWTR is the ticker symbol for Twitter, Inc.
UAL is the ticker symbol for United Airlines Holdings.
Underwriter is an intermediary organization in the implementation of an IPO (Initial Public Offering - an initial public offering of securities on the stock exchange), which carries out the placement of securities on the stock exchange on specific conditions and for a predetermined remuneration.
USD is the ticker for the US dollar.
V is the ticker symbol for Visa Inc.
Vice-broker - assistant broker on the stock exchange.
Volatility is an indicator of the speed of price movement. As a rule, it is measured visually or using indicators, for example, Average True Range (ATR), Stardard Deviation.
Distinguish between volatile and non-volatile markets. Accordingly, volatile markets are characterized by a high speed of price movements. Non-volatile markets are calm.
Volume - the total amount of an asset traded per unit of time.
VZ is the ticker symbol for Verizon Communications.
WDC is the ticker symbol for Western Digital.
A wealth manager is a person who trades the funds entrusted to him for a percentage of the profits received. As a rule, a money manager is a person who has one or more formed trading strategies in the financial markets, who attracts external capital to increase the return on his trading ideas.
WFC is the ticker symbol for Wells Fargo.
WMT is the ticker symbol for Walmart.
WU is the ticker symbol for Western Union Co.
XOM is the ticker symbol for Exxon Mobil Corp.
Yield on a security
Yield on a security - the ratio of the return on a security to its market value, calculated over a certain period. This indicator is used in assessing the investment attractiveness of a security: as a rule, the higher the yield, the more attractive the security, all other things being equal.