The Trader’s Dictionary contains explanations of many of the financial terms that successful traders use on a daily basis. This Glossary covers over 200 terms related to the world of finance and trading. Knowing the terms and understanding their meanings will help you learn about trading.
There are currently 14 names in this directory beginning with the letter F.
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.
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.
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.