A type of cryptocurrency based on Bitcoin software but has anonymity features that makes it impossible to trace transactions to an individual.
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Brave Academy Glossary
We know how difficult it is to find meaning to certain words or terms related to the financial market, that's why we've built a glossary to help you out.
A
This refers to how much money a trader’s trading account holds or is worth.
ASI stands for accumulative swing index, This is a technical indicator designed to measure the breakout potential of a particular market.
This is the estimated change in the number of the employed individuals in the United States within the last 30 days. Traders watch out for these updates to spot good trading opportunities.
This is the total demand for final goods and services in an economy at a given time, also referred to the demand for the gross domestic product of a country
This term is usually used in the cryptocurrency industry, meaning alternative coin. This referres to all other Cryptocurrencies other than Bitcoin.
This is cryptocurrency related. They are like digital account numbers used to receive digital payments on the internet, for example “Bitcoin Address”
Refers to all the Australia related trading pairs, for example AUD/USD (Australian Dollar/U.S. Dollar) pair. Also “Oz” or “Ozzie”.
This term is used to describe an individual who analyses the financial market for trading opportunities or for other purposes.
This term is used in the financial industry to describe a set of procedures, laws and regulations that require financial institutions or forex brokers to prevent, detect, and report money laundering activities,
This is an increase in the price or value of an asset, commodity or currency pair.
The Simultaneous purchase and sale of an instrument taking equal and opposite position in a related market, in order to take advantage of small price difference between markets.
This is a kind of chart pattern in technical analysis. It’s a channel trending in an upward direction.
This simply means the highest price value an asset has ever achieved or reached.
The Australian Currency
A bullish pattern created by connecting two or more lows, with each successive low higher than the previous low. This creates an upward sloping trend line. Traders also find opportunities for a sell breakout in these patterns.
This a bullish chart pattern signifying an uptrend continuation
ASIC stands for Application-Specific Integrated Circuit.(ASIC) miner is a device that is designed for the purpose of mining digital currency like Bitcoin, Ethereum etc. Generally, each ASIC miner is constructed to mine a specific digital currency. So, a Bitcoin ASIC miner can only mine bitcoin.
The price at which the market, a broker or an exchange sells a currency. The trader can buy the base currency at this price.
An Item with value that enable’s it to be exchanged.
This is cryptocurrency related and it’s a type of encryption involving two keys, A private key and a public key. The public key is easily derived from the private key but the reverse is nearly impossible
Austerity refers to the government’s reduction of spending in order to lower their deficit. Austerity measures, which usually involve wage cuts and tax hikes, are implemented by the government to ensure their creditors that they will be able to pay back their loans.
B
A bailout is the provision of financial help to a corporation or country which otherwise would be on the brink of failure or bankruptcy.
The departments and processes related to the settlement of financial transactions
The value of a country’s exports minus its imports.
A type of chart used in the forex. It has four major points- the high and low prices which form the vertical bar, the opening price marked on the left side of the bar, and the closing price marked on the right.
The first currency in a currency pair. It compares the values between the first currency and the second currency in a currency pair
A trader or an individual who believes that prices of an asset will decline
A market in which prices are on a steady decline
This is the manipulation of a financial instrument like crypto, currency pairs or commodity by investors. This is usually done to fool other traders or investors into thinking the upward trend in value of the asset has stopped, or is dropping.
The term “bearish” is used to describe that an individual or a trader’s view on an asset is negative (for example that the asset will fall in value)
The block header contains the necessary metadata for “chaining” blocks together to form the blockchain. This metadata differs between cryptocurrencies.
This is the quantity of blocks following the very first one on the blockchain. The very first block is referred to as the genesis block. A genesis block always has a height of zero when nothing follows it. The longer the blockchain is, the higher is the quantity of the block height.
This is the reward for each block created. This is an incentive reserved for solving the mathematical problem linked to the block. Different kinds of cryptocurrencies give out block rewards with different values. For example, the reward for mining a Bitcoin block is 12.5 bitcoins per block mined, which halves every 210,000 blocks.
A blockchain is a decentralized, digital ledger where transactions made in bitcoin or other cryptocurrencies are recorded chronologically and publicly.
Bollinger Bands are a type of statistical chart characterising the prices and volatility over time of a financial instrument or commodity, using a formulaic method propounded by John Bollinger in the 1980s
Usually a long declining candle in the chart, red in color.
The market must be in clearly defined uptrend. The first candle is bullish. The second candle is bearish. The bearish candle engulfs the previous candle’s body. The size of the candle being engulfed doesn’t matter. Ignore the wicks. An even stronger signal occurs when the bearish candle engulfs the bodies of two or three previous candles. Indicates a bearish trend may be beginning.
The Bearish Reversal Candlestick Pattern comes in over 12 different forms. These include the Abandoned Baby, the Bearish Engulfing Pattern, the Harami, the Dark Cloud Cover, the Evening Star and the Shooting Star. Bearish Reversal Candlestick Patterns should form in an uptrend and most will require Bearish Confirmation as reinforcement of the pattern. Use additional anaylsis to further support your findings.
This means a trader with a substantial amount of capital who is bearish (believes price will fall) on the price of a cryptocurrency.
The rate at which a trader is willing to buy a currency
The price at which the market buys a currency. This is the price that the trader may sell the base currency.
This is the difference between the buying and selling price. Usually how most brokers make profit.
In a professional trading environment, a ‘book’ is the summary of a trader’s or desk’s total positions.
Binary options are trading options that pay out a pre-set and fixed amount if the underlying asset on which the option is based reaches the trader
Bitcoin is a digital Currency created in early 2009, by Satoshi Nakamoto. Bitcoin is a decentralized currency, meaning it is not controlled by a single entity (like a central bank). Nobody controls it.
It was created in August 2017 and is essentially a clone of the original Bitcoin blockchain but has increased block size capacity (from 1 MB to 8 MB) which improves its ability to grow and scale.
A strong believer in bitcoin. Their love for the Bitcoin is so strong that most or all of their portfolio comprised of bitcoins. Maximalists are typically so heavily invested into bitcoin, they refuse to see its many downsides even when laid out clearly.
A block refers to a collection of data related to transactions that are bundled together with a predetermined size and are processed for transaction verification which eventually becomes part of a blockchain.
An online browser where all the information of the blocks is displayed. It also shows the transaction history and address balance. Cryptocurrency Related.
The price at which gains equal to losses.
Brexit is the withdrawal of the United Kingdom from the European Union. Following a UK-wide referendum in June 2016, in which 52% voted to leave and 48% voted to remain in the EU, the British government formally announced the country’s withdrawal in March 2017, beginning the Brexit process.
When the market price of an asset moves through a previously strong support or resistance area or level of interest. Typically followed by increased volatility and heavy volume.
An individual or firm that acts as an intermediary, putting together buyers and sellers
for a fee or commission. In contrast, a ‘dealer’ commits capital and takes one side of a position,
hoping to earn a spread (profit) by closing out the position in a subsequent trade with another
party.
A person who believes that an asset will rise in value.
A market moving in an upward direction, characterized by rising prices.
A bull trap is a kind of manipulation carried out in the market to drive the value upward, or create a false bull market.
The term “bullish” is used to describe that a person’s, or group’s, outlook on an asset is optimistic (i.e., that the asset will rise in value).
A Bullish Engulfing Pattern is a two-candlestick reversal pattern that forms when a small black candlestick is followed the next day by a large white candlestick, the body of which completely overlaps or engulfs the body of the previous day’s candlestick.
The Bullish Reversal Candlestick Pattern has over 14 different pattern styles. These include the Bullish Engulfing, the Piercing Pattern, the Harami, the Hammer, the Inverted Hammer, the Morning Star, and the Abandoned Baby. To use Bullish Reversal Candlestick Patterns succesfully, look for the pattern in a downtrend and use Bullish Confirmation to validate your analysis. Further reinforce your results by using additional analysis to confirm the patterns.
Buying Pressure occurs when the majority of traders are buying, indicating the majority think the market price will increase.
Bank Of England
Bank Of Japan
Bank Of Canada
When a trader losses all the funds in his trading account
C
The GBP/USD (Great British Pound/U.S. Dollar) pair. Cable earned its nickname because the rate was originally transmitted to the US via a transatlantic cable beginning in the mid 1800s when the GBP was the currency of international trade.
The currency of Canada. Currency trading code (CAD)
Type of chart used to indicate the trading range for the day and opening/closing prices. Can be viewed on various time frames
The Carry Trade is a trading strategy where investors/traders sell or borrow assets (such as currencies) with lower yielding interest rate to fund or buy higher yielding assets.
A market in which a futures or options contract is based.
The price of a product for instant delivery; i.e., the price of a product at that moment in time.
Abbreviation referring to central banks.
A government or quasi-governmental organization that manages a country’s monetary policy. For example, the US central bank is the Federal Reserve and the German central bank is the Bundesbank.
A Contract for Difference (or CFD) is a type of derivative that gives exposure to the change in value of an underlying asset (such as an index or equity). It allows traders to leverage their capital (by trading notional amounts far higher than the money in their account) and provides all the benefits of trading securities, without actually owning the product. In practical terms, if you buy a CFD at $10 then sell it at $11, you will receive the $1 difference. Conversely, if you went short on the trade and sold at $10 before buying back at $11, you would pay the $1 difference.
An individual, also known as a technical trader, who uses charts and graphs and interprets historical data to find trends and predict future movements.
Short-lived price moves with limited follow-through that are not conducive to aggressive trading.
Related to cryptocurrencies. This is the approximate number of coins or tokens that are circulating in the public market.
Funds that are freely available, sent in to settle a trade
The process of settling a trade.
The actual monetary value given to an asset. This value in a trade serves as a compromise at which a buyer agrees to buy and a seller agrees to sell.
An individual or a trader who carry out trades on a broker
A closed trade or transaction either in forex or crypto trading
Cloud mining is the process of mining cryptocurrency by using a shared hardware output from remote data centers. This basically gives anyone access to mine crypto currencies
The process of storing your Cryptocurrencies “offline”, to prevent them from being stolen by hackers. A good example is the storage of cryptocurrencies in a hardware wallet like Ledger Nano X
An asset given to secure a loan or as a guarantee of performance.
A trading or transaction fee charged by a broker.
A valuable physical asset traded on an exchange or broker. Examples include Gold and Crude Oil
Completeness entails that the accounting of all sales of goods and services be included in the financial statements or not.
Symbol for NASDAQ Composite Index.
The dollar pairs that make up the crosses (i.e., EUR/USD + USD/JPY are the components of EUR/JPY). Selling the cross through the components refers to selling the dollar pairs in alternating fashion to create a cross position.
Confirmation means a cryptocurrency transaction has been verified, usually through a mining process and added to a block that contains many other transactions.
Confluence is a situation that occurs when several technical indicators give the same trade signal/opportunity. Leading to greater accuracy and profitability.
The set of rules that determine consensus (agreement) on a blockchain.
Consolidation occurs usually after a bullish or bearish move and there is no decision taken yet on the next direction the market is headed. During this period, markets move sideways in a ranging pattern.
In the United States of America, the U.S. consumer confidence index is an economic indicator published by The Conference Board to measure consumer confidence, which is defined as the degree of optimism on the state of the U.S. economy that consumers are expressing through their activities of savings and spending.
A Consumer Price Index measures changes in the price level of a weighted average market basket of consumer goods and services purchased by households.
This is an economic indicator that measures how optimistic consumers feel about their finances and the state of the economy.
The tendency of an economic crisis to spread from one market to another.
An agreement of trade.
The process in which the price of both futures and spot approaching one another is called convergence.
The rate at which a specified currency is converted to another currency.
In trading, correlation is a measurement of the relationship between two assets.
A positive correlation suggests that an asset will move in the same direction as another asset.
A negative correlation means an asset will move in the opposite direction of another asset
The second currency in a currency pair. Also known as the Quote currency.
The customer or bank with which a foreign exchange deal is executed.
Additional risk from international investments.
Any action of closing a position.
A credit rating is an evaluation of the credit risk of a prospective debtor, predicting their ability to pay back the debt, and an implicit forecast of the likelihood of the debtor defaulting.
The negative chance that a person who owes currency cannot repay.
two currencies in which one currency is traded against another. Example EUR/USD
An exchange rate between two currencies.
The amount of crude oil, gasoline, and distillate in a country. Traders often look towards these fundamental result for good trade opportunities.
A cryptocurrency is a digital asset designed to work as a medium of exchange that uses strong cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets.
Cryptography is the practice and study of techniques for secure communication in the presence of third parties called adversaries.
Any form of money a government endorses and is used for trade.
A chart pattern that resembles a cup and a handle that shows where a bullish trend can possibly begin.
Currency codes are three letter abbreviations that identify’s a country’s currency, For example the United States Dollar is denoted by (USD)
Currency manipulation is the act of changing its value against other currencies instead of leaving it free to fluctuate based on market dynamics. This can be done by fixing the exchange rate or deliberately increasing or decreasing its value.
A currency pair is the quotation of two different currencies, with the value of one currency being quoted against the other. The first listed currency of a currency pair is called the base currency, and the second currency is called the quote currency
A currency peg is a policy in which a national government sets a specific fixed exchange rate for its currency with a foreign currency or a basket of currencies. Pegging a currency stabilizes the exchange rate between countries
The chance that is involved in exchange rates to have negative effects.
The sum of the balance of trade (exports minus imports of goods and services), net factor income (such as interest and dividends) and net transfer payments (such as foreign aid). The balance of trade is typically the key component to the current account.
D
A trading chart that shows the past price movement of a security (Currency pairs, Commodities ETC) in which each bar or candlestick represents a day’s worth of data.
The point of the day at which the trading day is over.
DAOs (Decentralized Autonomous Organizations) are organizations that operate entirely by encoded computer programs called smart contracts. All the transaction history and program instructions are managed within a blockchain. Also a Cryptocurrency
A person who makes and closes trades within the same trading day, or “flat” (no open positions) at the end of the session.
Opening and closing a position on the same day. Day traders trade on very short-term market movements.
A list of all the transactions occurred in a specific time period, usually a trading day.
A Primary method of recording a transaction.
An individual or firm that acts as a principal or counterpart to a transaction. Principals take one side of a position, hoping to earn a spread (profit) by closing out the position in a subsequent trade with another party. In contrast, a broker is an individual or firm that acts as an intermediary, putting together buyers and sellers for a fee or commission.
The difference between the buying and selling price of a contract.
To be decentralized simply means not being controlled by any single entity or institution. Blockchain is an example of something that is decentralized.
Shortfall in the balance of trade, balance of payments, or government budgets.
Deflation is the opposite of inflation. It is the decrease in the price of a basket of goods and services. Deflation happens when the annual inflation rate turns negative. Such an event is usually brought about by a reduction in the money supply and/or credit.
The settlement of a transaction by receipt or tender of financial instrument or currency.
A decline in price of a currency due to economic changes.
The simple definition of a depression is a large scale recession that lasts an extended period of time.
Derivatives are financial instruments that acquires the majority of their value from the price of the underlying asset they are tracking such as commodities and currencies, or from securities such as stocks and bonds.
Descending channels are chart patterns in technical analysis. They are formed by drawing two trend lines, one through the high prices for an asset and one through the low prices for the asset. If the overall price direction is going down then the trend lines forms a descending channel.
Descending trend lines are simply trend lines with a negative slope, indicating falling prices
A descending triangle is formed from two trendlines, one for high prices and one for lows. The upper trendline of the triangle is a descending trendline, while the lower trendline is a horizontal trendline. The resulting shape is a right triangle whose hypotenuse moves downward over time.
Refers to a group that deals with a specific currency or currencies.
An intentional decrease in a currency’s price due to official announcement.
They verify the integrity of a transaction through public key cryptography. The signing process proves cryptocurrency transactions are made from the rightful sender and have not been altered.
A dip is when a cryptocurrency experiences a decline in price. Dips are visually identified as a “valley” on a price chart.
Quotes in fixed units of foreign currency against domestic currency.
Discretionary trading is decision-based trading. The trader decides which trades to make based on current market conditions. System trading, on the other hand, is rule-based trading. The trading system decides which trades to make, regardless of current conditions.
A distributed ledger is a consensus of replicated, shared, and synchronized digital data geographically spread across multiple sites, countries, or institutions. There is no central administrator or centralized data storage
Divergence is a trading pattern in which the relationship between price action and an oscillator indicator is measured.
Dogecoin (DOGE) is an altcoin that first started as a joke in late 2013. Dogecoin, which features a Japanese fighting dog as its mascot, gained a broad international following and quickly grew to have a multi-million dollar market capitalization.
The doji is a commonly found pattern in a candlestick chart of financially traded assets in technical analysis. It is characterized by being small in length—meaning a small trading range—with an opening and closing price that are virtually equal. The doji represents indecision in the market.
A double bottom pattern is a technical analysis charting pattern that describes a change in trend and a momentum reversal from prior leading price action. It describes the drop of a stock or index, a rebound, another drop to the same or similar level as the original drop, and finally another rebound
The risk that a single cryptocurrency can be spent twice (or more).
A double top is an extremely bearish technical reversal pattern that forms after an asset reaches a high price two consecutive times with a moderate decline between the two highs. It is confirmed once the asset’s price falls below a support level equal to the low between the two prior highs.
Dovish refers to data or a policy view that suggests easier monetary policy or lower interest rates. The opposite of hawkish.
The Dow Jones Industrial Average is one of the premier US stock indices, comprising a weighted average of the stock prices of 30 of the largest US companies.
The sale of a currency at a price lower than the previous sale.
Commonly called Dragonfly Doji. This is a type of single Japanese candlestick pattern formed when the high, open, and close prices are the same. It usually signals a potential reversal.
A draw down refers to a reduction in equity or trading balance
When a person or group sell a bunch of coins at a market value, driving the price of the coins down.
DYOR is an acronym for “Do Your Own Research“. Commonly used for newbies
Code or abbreviation for the United States Dollar Index
E
A decline in interest rates due to central bank activity
European Central Bank, the central bank for the countries using the euro.
An economic indicator is a measurement or data point on the economy that provides a barometer of how the country is doing, which could influence an asset’s value.
also known as emerging economies or developing countries are nations migrating from their traditional economies that have relied on agriculture and the export of raw materials, engaging more in globalization
This report measures the change of a country’s employment conditions from the previous month. In laymen terms, it means it counts the total number of people who lost their jobs or gained employment in the previous month.
The employment cost index is a quarterly economic series detailing the changes in the costs of labor for businesses in the United States economy. The ECI is prepared by the Bureau of Labor Statistics, in the U.S. Department of Labor.
A trade order to buy or sell but closes at the end of the trading day. Hence- End of day order. Also known as an EOD.
The Engulfing pattern is formed by two candles, where the body of the first candle is “engulfed” by the body of the second candle.
An entry order is one that is used to enter a trade at a specified price level. If the currency pair never reaches that price level then the entry order is not executed.
A type of token standard for Ethereum which ensures the tokens perform in a predictable way. This allows the tokens to be easily exchangeable and able to work immediately with decentralized applications that also use the ERC20 standard. Most tokens released through ICOs are compliant with the ERC20 standard.
A type of cryptocurrency that is used for operating the Ethereum platform and is used to pay for transaction fees and computational tasks. In the platform, transaction fees are measured based on the gas limit and gas price and ultimately paid for in ether.
Ethereum is an open source, decentralized platform based on blockchain technology created by Vitalik Buterin in 2013. It runs smart contracts on a custom-built blockchain that allows developers to create decentralized applications.
is a type of cryptocurrency that is a continuation of the original Ethereum blockchain
The official currency of the European Union
An Evening Star is a bearish reversal candlestick pattern consisting of three candles: a large bullish candlestick, a small-bodied candle, and a bearish candle.
Evening Star patterns appear at the top of a price uptrend, signifying that the uptrend is nearing its end.
The opposite of the Evening Star is the Morning Star pattern, which is viewed as a bullish reversal candlestick pattern.
A physical location where commodities and futures are traded.
An exchange in the crypto industry is a website or mobile application where individuals can buy and sell cryptocurrencies using fiat money, bitcoins or altcoins.
The potential loss that could be incurred from an adverse movement in exchange rates.
Existing home sales is an economic indicator released by the National Association of Realtors. The data reflect the number of homes that have previously been constructed (and therefore accounted for by the new home sales indicator) and are now being resold
Refers to a currency that is not popularly traded or considered one of the eight major currencies.
The last day on which the holder of an option can exercise his right to buy or sell the underlying security.
An exponential moving average (EMA) is a type of moving average (MA) that places a greater weight and significance on the most recent data points. The exponential moving average is also referred to as the exponentially weighted moving average
Exports refer to any good, commodity or service sold to a foreign country.
The time zone of New York City, which stands for United States Eastern Standard Time/Eastern Daylight time.
F
The dollar level of new orders for both durable and nondurable goods. This report is more in depth than the durable goods report which is released earlier in the month.
Fading is a trading technique in which a trader assumes that a rapid upward movement is overdone and takes a short position on a possible reversal.
A falling wedge is a chart pattern that may be considered as either a reversal pattern or a continuation pattern, depending on the prevailing trend factor.
Faucets are services (websites or mobile apps) that dispense rewards of a tiny fraction (drips) of cryptocurrency for visitors to claim. Faucets are used to promote coins and/or drive traffic to repeat visits.
The federal funds rate is the rate at which depository institutions (banks) lend reserve balances to other banks on an overnight basis.
The Federal Open Market Committee, a committee within the Federal Reserve System, is charged under United States law with overseeing the nation’s open market operations. This Federal Reserve committee makes key decisions about interest rates and the growth of the United States money supply.
What is the purpose of the Federal Reserve System? The Federal Reserve System, often referred to as the Federal Reserve or simply “the Fed,” is the central bank of the United States. It was created by the Congress to provide the nation with a safer, more flexible, and more stable monetary and financial system.
Fiat money refers to currencies that have minimal or no intrinsic value themselves (not backed by commodities like gold or silver) but are defined as legal tender by the government, such as banknotes and coins.
Fibonacci Retracement is a method of technical analysis for determining support and resistance levels. They are named after their use of the Fibonacci sequence.
Fibonacci extensions are a tool that traders can use to establish profit targets or estimate how far a price may travel after a retracement/pullback is finished. Extension levels are also possible areas where the price may reverse. Extensions are drawn on a chart, marking price levels of possible importance.
The action of completing a order to make a transaction.
The price at which an order was executed.
The negative chance a firm cannot meet its financial obligations.
Rule in which positions are closed in the order they were originally opened. Also known as FIFO.
Fiscal policy, also known as financial policy, is the method in which governments adjusts its levels of spending and taxation to directly influence the economy
The Fisher effect describes the relationship between interest rates and inflation.
An official rate set by monetary officials.
A flag is a chart pattern used in technical analysis. Although it is less popular than triangles, wedges, and other commonplace technical analysis tools, traders consider flags to be extremely reliable consolidation patterns.
Slang used to describe a position that creates a neutral position. A position that has been sold or bought at the same price as the buying or selling price respectively
The point in which a trader switches from having more long positions to more short positions.
A rate that is allowed to change freely, as influenced by an open market, rather than being fixed to the value of another asset (e.g., the Chinese Yuan is not openly traded and fixed to the value of the U.S. Dollar).
Fresh buying or selling interest after a directional break of a particular price level. The lack of follow-through usually indicates a directional move will not be sustained and may reverse.
FOMO is the acronym for “Fear Of Missing Out”. It is the fear of missing out on the profit you might make if you don’t buy a cryptocurrency ASAP regardless of its current price.
The simultaneous buying of one currency and selling of another. The global market for such transactions is referred to as the forex or FX market.
Foreign Exchange (Forex) refers to the foreign exchange market. It is the over-the-counter market in which the foreign currencies of the world are traded. It is considered the largest and most liquid market in the world
A foreign exchange swap, forex swap, or FX swap is a simultaneous purchase and sale of identical amounts of one currency for another with two different value dates and may use foreign exchange derivatives.
The pre-specified exchange rate for a foreign exchange contract settling at some agreed future date, based on the interest rate differential between the two currencies involved.
The normal trading activities carried out by the dealer.
FUD stands for Fear, Uncertainty and Doubt. It is the spreading of misinformation of a cryptocurrency by uninformed sources.
Full nodes are internet-connected computers that store a complete copy of the blockchain within a network.
Fundamental Analysis considers the overall state of the economy and factors including interest rates, production, earnings, employment, GDP, housing, manufacturing and management. These information are put together to create trade opportunities
Macroeconomic factors that affect the currency markets.
A standardized, transferable, exchange-traded contract that expires on a specified future date.
A futures commission merchant is just like a securities broker, but instead deals with futures contract orders. FCM
An obligation to exchange a good or instrument at a set price and specified quantity grade at a future date. The primary difference between a Future and a Forward is that Futures are typically traded over an exchange (Exchange- Traded Contacts – ETC), versus Forwards, which are considered Over The Counter (OTC) contracts. An OTC is any contract NOT traded on an exchange.
G
The Group of Seven is an international intergovernmental economic organization consisting of the seven largest IMF- advanced economies in the world: Canada, France, Germany, Italy, Japan, the United Kingdom and the United States.
The G20 is an international forum for the governments and central bank governors from 19 countries and the European Union.
A gap occurs when a market price moves directly from one correctly quoted price to another, significantly different, correctly quoted price.
Also know as Gas fee. Is the processing fee for every transaction made in the Ethereum network.
A term used in the Ethereum platform that refers to the maximum amount of units of gas the user is willing to spend on a transaction.
A term used in the Ethereum platform that refers to the price you are willing to pay for a transaction
The first block of data that is processed and validated to form a new blockchain, often referred to as block 0 or block 1.
The Engulfing pattern is formed by two candles, where the body of the first candle is “engulfed” by the body of the second candle.
Refers to a bid being hit or selling interest.
Greenwich Mean Time – The most commonly referred time zone in the forex market. GMT does not change during the year, as opposed to daylight savings/summer time.
A certificate of ownership that gold investors use to purchase and sell the commodity instead of dealing with transfer and storage of the physical gold itself.
The standard unit of trading gold is one contract which is equal to 10 troy ounces.
The act of buying currency, commodities, and stocks for investment.
The act of selling currency, commodities, or stocks not already belonging to the seller.
An order to trade at a specific price. It remains open until trader cancels. Hence “Good ’til cancelled.” Also known as GTC.
A technical level succumbs to a hard-fought battle.
An order that will expire at the end of the day if it is not filled.
GPU mining is a process of solving complex math problems to verify electronic transactions using computer components — in this case, a graphics card. Miners who participate can either create digital coins or get paid for their processing power in a cryptocurrency.
The Gravestone Doji is a Japanese candlestick in which the open and close price of the candle is at the same level or is very close to the same level.
Nickname for the US dollar.
A Greek withdrawal from the eurozone was a hypothetical scenario under which Greece would withdraw from the Eurozone to deal with the now expired Greek government-debt crisis.
Gross domestic product is a monetary measure of the market value of all the final goods and services produced in a specific time period.
the total value of goods produced and services provided by a country during one year, equal to the gross domestic product plus the net income from foreign investments.
GWei (Gigawei) is a denomination of ether that is used in reconciling gas cost. 1 ETH = 1000000000 (1e9) GWei. GWei is also referred to as Shannon, Nanoether, and Nano.
H
Also known as Bitcoin halving, is an event that occurs once roughly every four years wherein the block reward miners receive upon solving a block on the Bitcoin network is reduced by half. As a result, the rate at which new bitcoins are generated decreases. The halving event is periodical and is programmed into Bitcoin’s code.
A Hammer is red or a green candlestick that consists of a small body near the high with a little or no upper shadow and a long lower tail.
A Hanging Man is a Japanese candlestick described as having a small body, little or no upper shadow (or wick) and a lower shadow.
In order for the Hanging Man candle to be valid, the lower shadow must be at least twice the size of the candle’s body.
The maximum amount that an ICO will be raising. If an ICO reaches its hard cap, they will stop collecting any more funds.
A hard fork (or hardfork), as it relates to blockchain technology, is a radical change to a network’s protocol that makes previously invalid blocks and transactions valid, or vice-versa. A hard fork requires all nodes or users to upgrade to the latest version of the protocol software.
Hardware wallets are a form of cryptocurrency cold storage. Resembling the appearance of a USB thumb drive, hardware wallets store your private keys offline from potential breaches. Not all cryptocurrencies are supported by hardware wallets.
A hash function is a mathematical process of taking a message (the input) of arbitrary length and turning it into a fixed length message digest (the output).
Hash per second (h/s) is the number of hash computations per second. It is a measurement of computing performance for mining rigs.
Hash rate is the speed at which a cryptocurrency mining machine operates – it’s essentially a measure of the miner’s performance. Hash rate is usually measured in hashes per second, and the higher the hash rate is, the faster your mining hardware can mine crypto.
Refers to the tone of language when describing an aggressive stance or viewpoint regarding a specific economic event or action.
Head and Shoulders is a technical chart pattern considered to be one of the most reliable and accurate of all reversal patterns. The head and shoulders pattern reveals itself by a series of three highs with the Head represented as central high that is higher than the flanking peaks that form the shoulders.
A hedge is an investment to reduce the risk of adverse price movements in an asset. Normally, a hedge consists of taking an offsetting position in a related security, such an options or a futures contract.
A hedge fund is an investment fund that pools capital from high net worth individuals or institutional investors and invests in a variety of assets, often with complicated portfolio-construction and risk management techniques
To sell at the current market bid.
Hodl is slang in the cryptocurrency community for holding the cryptocurrency rather than selling it. A person who does this is known as a Hodler. It originated in a December 2013 post on the Bitcoin Forum message board by an apparently inebriated user who posted with a typo in the subject, “I AM HODLING.”
An Individual who buys a cruptocurrency for long term investment purpose
Names for the Hong Kong Hang Seng index.
Horizontal trend channels are chart patterns used in technical analysis. Like ascending and descending trend channels, horizontal trend channels are formed by drawing trendlines for both high and low prices on a chart. If asset prices remain reasonably constant overall for some period of time, the slope of both trendlines used in the chart will appear horizontal, and a horizontal trend channel will be formed.
Hot storage refers to a crytocurrency wallet that is connected to the internet. Some examples of hot storages include online wallets, software wallets, and storing your cryptocurrency within an online exchange account. The opposite of hot storage is cold storage.
A hot wallet is a cryptocurrency wallet that is connected to the internet.
A cryptocurrency storage and management system that is a combination of a software wallet (stored on your own computer) and a web wallet (stored on a third-party server).
hyperinflation is very high and typically accelerating inflation. It quickly erodes the real value of the local currency, as the prices of all goods increase. This causes people to minimize their holdings in that currency as they usually switch to more stable foreign currencies, often the US Dollar.
I
An initial coin offering or ICO is an unregulated means by which a cryptocurrency venture, typically early stage, can raise money from supporters by issuing tokens
Regarding cryptocurrencies, it means once data has been written to a blockchain no one can change it.
The import prices index follows the increase or decrease in the prices paid for goods imported to a host country.
Cryptocurrency Related, it means Importing is a method of moving funds from a wallet using your private key or pass phrase. to another wallet
Imports refer to goods and services purchased from another country. For instance, industrialized countries usually import oil from OPEC countries.
An exchange rate quoted as the foreign currency per unit of domestic currency. The domestic currency is always denoted as 1 while the foreign currency is variable.
Inflation is a quantitative measure of the rate at which the average price level of a basket of selected goods and services in an economy increases over some period of time. It is the rise in the general level of prices where a unit of currency effectively buys less than it did in prior periods.
Initial jobless claims are a data point issued by the U.S. Department of Labor as part of its weekly Unemployment Insurance Weekly Claims Report. Initial jobless claims refer to claims for unemployment benefits filed by unemployed individuals with state unemployment agencies.
The original deposit of collateral needed to enter in a trade.
The foreign exchange rates which large international banks quote to each other.
Adjustments in cash to reflect the effect of owing or receiving the notional amount of equity of a CFD position.
A rate which a borrower pays for holding a lender
The potential for losses arising from changes in interest rates.
The International Monetary Fund, or IMF, promotes international financial stability and monetary cooperation. It also facilitates international trade, promotes employment and sustainable economic growth, and helps to reduce global poverty.
Action by a central bank to affect the value of its currency by entering the market. Concerted intervention refers to action by a number of central banks to control exchange rates.
Open positions that are usually closed by the end of the trading day.
The inverted hammer is a type of candlestick pattern found after a downtrend and is usually taken to be a trend-reversal signal. The inverted hammer looks like an upside down version of the hammer candlestick pattern, and when it appears in an uptrend is called a shooting star.
An Inverted Head and Shoulders is a reversal pattern consisting of three lows with the Head represented as central low being the lowest peak of the pattern and the flanking peaks as the shoulders.
An investment fund is a way of investing money alongside other investors in order to benefit from the inherent advantages of working as part of a group
Symbol for S&P 500 index
IOTA (MIOTA) refers to the cryptocurrency and the name of an open source distributed ledger founded in 2015 that does not use a blockchain. It uses a new distributed ledger called the Tangle. It offers features such as zero fees, scalability, and fast and secure transactions.
A private company’s initial offer of stock to the public. Short for initial public offering.
A measure of the change in purchases made by corporate executives. Generally used to determine economic growth and measure business optimism. If the optimal economic conditions are predicted, businesses will spend more in order to accommodate future demand for goods and services.
J
Japanese Candlesticks are a technical analysis tool that traders use to chart and analyze the price movement of securities. The concept of candlestick charting was developed by Munehisa Homma, a Japanese rice trader. During routine trading, Homma discovered that the rice market was influenced by the emotions of traders, while still acknowledging the effect of demand and supply on the price of rice.
K
To limit your trades due to inclement trading conditions. In either choppy or extremely narrow markets, it may be better to stay on the sidelines until a clear opportunity arises
Nickname for NZD/USD (New Zealand Dollar/U.S. Dollar).
Know Your Customer (KYC) is the process of a business, involved with financial transactions, to to identify and verify the identity of customers. It is an essential part of banking regulation.
Option strategy that requires the underlying product to trade at a certain price before a previously bought option becomes active. Knock-ins are used to reduce premium costs of the underlying option and can trigger hedging activities once an option is activated.
Option that nullifies a previously bought option if the underlying product trades a certain level. When a knock-out level is traded, the underlying option ceases to exist and any hedging may have to be unwound
L
A leading indicator is any economic factor that changes before the rest of the economy begins to go in a particular direction. Leading indicators help market observers and policymakers predict significant changes in the economy
In accounting, this is the book or computer file for recording and totaling transactions by account. It includes a beginning balance, debits, credits and an ending balance.
A ratio of amount used in a transaction to the required deposit.
A light note (also referred to as a thin client) does not store the complete copy of the blockchain like a full node. By only storing the block headers (and not block transactions), light nodes can be run on devices with limited memory resources, such as smartphones. Light nodes are dependent on full nodes to run.
The Lightning Network is a low latency, off chain P2P system for making micropayments of cryptocurrencies. It offers features such as instant payments, scalability, low cost and cross-chain functionality. Participants do not have to make individual transactions public on the blockchain and security is enforced by smart contracts.
An order with specified boundaries. Can be used to control how much profit and how much loss a trader is willing to handle.
Closing one position by opening a new transaction to offset it.
In the Forex market, liquidity pertains to a currency pair’s ability to be bought and sold without causing significant change in its exchange rate. A currency pair is said to have high level of liquidity when it is easily bought or sold and there is a significant amount of trading activity for that pair.
Litecoin (LTC) is a type of cryptocurrency that was created by former Google employee Charlie Lee in 2011.
A long candle represents a large move from open to close, where the length of the candle body is long.
A position that becomes beneficial as market price rises. A pair in which the base currency is bought is said to be long.
Long term trading, otherwise known as position trading, refers to a trading style in which the trader will hold on to a position for an extended period of time. A position trade can last anywhere from a few weeks to a couple of years.
A unit of measurement that measures the amount of the transaction. It is always an integer number.
M
MACD, short for moving average convergence/divergence, is a trading indicator used in technical analysis of stock prices, created by Gerald Appel in the late 1970s. It is designed to reveal changes in the strength, direction, momentum, and duration of a trend in a stock’s price.
The necessary money needed to maintain a position. The required initial deposit of collateral to enter into a position or foreign exchange trade.
A demand for additional funds to cover open trade positions.
Market capitalization, commonly called market cap, is the market value of a publicly traded company’s outstanding shares. Market capitalization is equal to the share price multiplied by the number of shares outstanding.
A market maker or liquidity provider is a company or an individual that quotes both a buy and a sell price in a financial instrument or commodity held in inventory, hoping to make a profit on the bid–ask spread, or turn.
An order to make a trade or transaction at the current market price.
A Marubozu is a long or tall Japanese candlestick with no upper or lower shadow (or wick).
An approximation of the maximum number of coins or tokens that will ever exist for a cryptocurrency or digital token.
Can be found by multiplying the maximum leverage ratio by the account value.
Mechanical trading systems are systems that generate trade signals for a trader to take. They are called mechanical because a trader will take the trade regardless of what is happening in the markets
Medium-term traders hold positions for a few days, taking advantage of fundamental factors and technical setups. Compared to scalping and long-term trading, medium-term trading has the lowest capital requirements. However, there are fewer trade opportunities for this type of trading.
Mining is the process where transactions are verified and added to a blockchain.
Momentum, in technical analysis, refers to the overall rate of change in the price of an asset. Momentum is calculated simply by taking the slope of the trendline, which tracks the price levels of an asset over time.
Monero (XMR) is a type of cryptocurrency created in 2014 that is focused on privacy and scalability, and runs on platforms like Windows, Mac, Linux and Android. Transactions on Monero are designed to be untraceable to any particular user or real world identity.
Monetary policy is the policy adopted by the monetary authority of a country that controls either the interest rate payable on very short-term borrowing or the money supply, often targeting inflation or the interest rate to ensure price stability and general trust in the currency.
Money management refers to a set of rules that help you maximise your profits, minimise your losses and grow your trading account.
Money supply is the total amount of money in circulation in the economy at a particular time. It is considered an important instrument in controlling inflation. There are three measures for money supply, namely M1, M2, and M3. M1 is a narrow measure of money
This refers to a cryptocurrency’s extreme upward momentum as it keeps climbing in price. Example: “The price of this coin will one day go to the moon!”
This is a bullish pattern signifying a potential bottom. A three candle bullish reversal pattern consisting of three candlesticks:
The average of prices over a given time. Can be used as a trading tool.
N
An abbreviation for the NASDAQ 100 index.
The North American Free Trade Agreement, or NAFTA, is a three-country accord negotiated by the governments of Canada, Mexico, and the United States that entered into force in January 1994.
The National Futures Association is the self-regulatory organization for the U.S. derivatives industry, including on-exchange traded futures, retail off-exchange foreign currency and OTC derivatives. NFA is headquartered in Chicago and maintains an office in New York City
NEM (XEM) refers to the cryptocurrency and the name of a platform for management of a variety of assets, including currencies, supply chains, ownership records, etc. It offers additional features to blockchain technology such as multi-signature accounts, encrypted messaging, etc.
NEO refers to the cryptocurrency and the name of a China’s first open source blockchain that was founded in 2014 by Da Hongfei. It is similar to Ethereum in its ability to execute smart contracts or Dapps but has some technical differences such as coding language compatibility.
The amount of currency bought or sold that hasn’t been offset by opposite transactions (Trades).
Used in forex trading meaning when the New york trading session begins, usually from 8:00am – 5:00pm (New York time).
New home sales is an economic indicator which records sales of newly constructed residences in the United States of America. The United States Census Bureau publishes new home sales statistics monthly on their website. Statistics are reported as unadjusted monthly rates and seasonally adjusted annual rates
An option that pays a fixed amount to the holder if the market never touches the predetermined Barrier Level.
A computer that has a full copy of the blockchain and is part of the decentralized network.
Nonfarm payroll employment is a compiled name for goods, construction and manufacturing companies in the US. It does not include farm workers, private household employees, or non-profit organization employees.
The measure of output per hour worked. If more output is produced, prices may be lower of the product. The higher the productivity, the better the economy. It is considered the most accurate gauge of overall business health.
“Noob” is an abbreviation for the term “New Blood”. The term is also expressed as “newbie.” It applies to anyone who is newly exposed to an industry or community, for example the Forex or Crypto industry
Symbol for NYSE Composite index
O
The price at which the market is prepared to sell a product. Prices are quoted two-way as Bid/Offer. The Offer price is also known as the Ask. The Ask represents the price at which a trader can buy the base currency, which is shown to the right in a currency pair. For example, in the quote USD/CHF 1.4527/32, the base currency is USD, and the ask price is 1.4532, meaning you can buy one US dollar for 1.4532 Swiss francs. In CFD trading, the Ask represents the price a trader can buy the product. For example, in the quote for UK OIL 111.13/111.16, the product quoted is UK OIL and the ask price is £111.16 for one unit of the underlying market.*
Situation in which offers are greater than bids.
A transaction that cancels or eliminates all market risk in an open position.
Slang for the Bank of England
An order that will be executed when a specified market price is reached.
An active trade that has yet to be closed.
Software code that is shared and available for everyone to see, inspect and modify.
Operation Twist pertains to the Federal Reserve’s action to sell short-term US Treasury bonds and invest the proceeds into long-term US Treasury bonds.
A request for a trade to be executed.
An order book is an electronic list of buy and sell orders for a specific financial instrument.
Foreign exchange transaction involving either the purchase or the sale of a currency for settlement at a future date.
Used to describe any transaction that is not conducted through an exchange
A position that stays open until the next trading day.
P
The forex quoting convention of matching one currency against the other.
A very heavy round of selling
The parabolic SAR (short for Stop And Reverse) is a very complicated predictive algorithm designed to establish a trailing stop-loss level for asset markets that follow strong bullish or bearish trends
The Pending Home Sales Index (PHS), a leading indicator of housing activity, measures housing contract activity, and is based on signed real estate contracts for existing single-family homes, condos, and co-ops.
A Pennant is usually a method of pattern trading based on a continuation pattern. Continuation patterns also include Ascending Triangles, Descending Triangles, Wedges, Flags, Symmetrical Triangles and Pennants and are essentially technical patterns that are expected to lead to the continuation of an existing trend.
A collection of investments owned by individual or an entity.
The smallest unit of price for any foreign currency, pips refer to digits added to or subtracted from the fourth decimal place, i.e. 0.0001.
In financial markets, a pivot point is a price level that is used by traders as a possible indicator of market movement. A pivot point is calculated as an average of significant prices from the performance of a market in the prior trading period.
The net total exposure in a given currency. A position can be either flat or square (no exposure), long (more currency bought than sold), or short (more currency sold than bought).
Position trading is a common trading strategy where an individual holds a position in a security for a long period of time, typically over a number of months or years. Position traders ignore short-term price movements in favor of pinpointing and profiting from longer-term trends.
Premining is when the founders of a cryptocurrency “self-mine” and keep a portion of newly created cryptocurrency for themselves before launching publicly.
Cryptocurrency Related, A ICO presale is also known as Pre-ICO is a token sale event that takes place before an ICO is made available to the general public to participate.
A description of quotes in which everybody in the market has equal access.
A private key is an encrypted series of letters and numbers that allows someone to access their Cryptocurrency and spend or withdraw it in a transaction. It is like your bank account number.
A producer price index is a price index that measures the average changes in prices received by domestic producers for their output. Its importance is being undermined by the steady decline in manufactured goods as a share of spending
The actual gain or loss due to transactions and market activities.
Proof of Stake (PoS) is an algorithm by which a Cryptocurrency’s Blockchain aims to achieve distributed consensus.An individual can validate transactions and create new blocks based on their individual wealth (stake) such as the total number of coins owned.
Proof of Work (PoW) is an algorithm that rewards the first person that solves a computational problem (mining) to achieve distributed consensus. Miners compete to solve difficult cryptographic puzzles in order to add the next block on the Blockchain.
A set of rules governing the exchange or transmission of data between devices, agreed upon by the network participants. (Cryptocurrency Related)
Psychology is an important aspect of trading that deals with a traders ability to handle emotions. A sound traders psychology would greatly contribute to a traders success.
The public key is a cryptographic key used to encrypt messages. A public key known to everyone.
The tendency of a trending market to retrace a portion of the gains before continuing in the same direction.
When a person or group with lots of money buy a bunch of coins at market value, driving the price of the coins up.
A product which gives the owner the right, but not the obligation, to sell it at a specified price
Q
Informs every market individual of market prices.
The second currency in a currency pair. Also known as the Counter currency
When a central bank injects money into an economy with the aim of stimulating growth. In simple terms, the printing of money by the central bank.
analysis of a situation or event, especially a financial market, by means of complex mathematical and statistical modelling.
A type of future with expiry dates every three months (once per quarter).
R
An increase of price after a period of decline.
The difference of the highest and lowest price in a given trading period.
The price of one currency in terms of another currency.
Reserve Bank of Australia, the central bank of Australia.
Reserve Bank of New Zealand, the central bank of New Zealand.
Traders of significant size including pension funds, asset managers, insurance companies, etc. They are viewed as indicators of major long-term market interest, as opposed to shorter-term, intra-day speculators.
The amount of money you have made or lost when a position has been closed.
A recession occurs when there are two or more consecutive quarters of negative economic growth, meaning GDP growth contracts during a recession. When an economy is facing recession, business sales and revenues decrease, which cause businesses to stop expanding.
The process of asking the general public to vote on a political decision. It is also known as a “plebiscite,” or a vote on a ballot question.
This is a misspelling of “wrecked”. This term refers to a cryptocurrency investor or trader who is utterly ruined and destroyed due to losses from a recent price crash.
Relative Strength Index is also know as RSI, this is a price oscillator used in technical analysis to show changes in the strength of prices.
Usually a technical price level at which traders are likely to sell a trading instrument.
Measures the monthly retail sales of all goods and services sold by retailers based on a sampling of different types and sizes. This data provides a look into consumer spending behavior, which is a key determinant of growth in all major economies.
When a pegged currency is allowed to strengthen or rise as a result of official actions; the opposite of a devaluation.
The reward-to-risk ratio measures a trade’s expected returns against its predetermined risk of loss.
Ripple (XRP) refers to the cryptocurrency and the name of an open-source payment platform where the cryptocurrency (XRP) can be transferred. The vision for the platform is to enable real-time global payments anywhere around the world.
The Rising Wedge is a bearish pattern that begins wide at the bottom and contracts as prices move higher and the trading range narrows. In contrast to symmetrical triangles, which have no definitive slope and no bullish or bearish bias, rising wedges definitely slope up and have a bearish bias.
Amount of money a person is willing to lose.
The process and ability to limit and eliminate various types of risk.
A rollover is the simultaneous closing of an open position for today’s value date and the opening of the same position for the next day’s value date at a price reflecting the interest rate differential between the two currencies. In the spot forex market, trades must be settled in two business days. For example, if a trader sells 100,000 Euros on Tuesday, then the trader must deliver 100,000 Euros on Thursday, unless the position is rolled over. As a service to customers, all open forex positions at the end of the day (5:00 PM New York time) are automatically rolled over to the next settlement date.
A trade that has been opened and subsequently closed by an equal and opposite deal.
An indicator of the status of your open positions; that is, unrealized money that you would gain or lose should you close all your open positions at that point in time.
A symbol for Russell 2000 index.
S
These are Assets that are considered relatively low-risk investments and are usually bought up in times of uncertainty. They are typically low-paying but are deemed stable by market participants. For example Gold.
A Satoshi is the smallest unit of bitcoin used in the blockchain, named in honor of the creator of Bitcoin, Satoshi Nakamoto. . It is equal to one hundred millionths of a bitcoin
Scalping or short-term trading involves making dozens or hundreds of trades a day, trying to scalp a small profit from each trade by exploiting the bid-ask spread.
The Securities and Exchange Commission.
Associated with Cryptocurrencies, Segregated Witness (SegWit) is the process where the block size limit on a blockchain is increased by removing digital signature data and moving it to the end of a transaction to free up capacity.
Taking a sell trade or position in expectation that the market is going to go down.
A sell wall is a huge sell order that prevents the market price from going up until the entire sell volume is complete.
Selling pressure occurs when the majority of the traders are selling, indicating that the majority think the market price will decrease.
Forex sentiment analysis entails identifying traders’ positions so that you can try to know how they are thinking and make appropriate trade decisions. In other financial markets, like the stocks market, participants can assess the volume traded to gauge the prevailing sentiment.
A coin without a future. It can still be used for flipping and turning a profit.
A Shooting Star is a single candlestick pattern that is found in an uptrend. The candlestick can mark a top (but is often retested). A Shooting Star is formed when price opens higher, trades much higher, then closes near its open. This bearish reversal candle looks like the Inverted Hammer except that it is bearish.
A position or trade in which the base currency is sold.
A short squeeze is a rapid increase in the price of a traded asset that occurs primarily due to technical factors in the market rather than underlying fundamentals. A short squeeze can occur when there is a lack of supply and an excess of demand for the asset due to short sellers covering (liquidating) their positions
The difference between the price that was requested and the price obtained typically due to changing market conditions.
Choppy trading conditions that lack any meaningful trend and/or follow-through.
Soft Cap refers to the minimum amount that an initial coin offering (ICO) needs to raise. If the ICO is unable to raise that amount, it may be canceled and the collected funds returned to participants.
A technical term of the process of changing protocols to invalidate previously valid blocks or transactions.
Speculation is the purchase of an asset with the hope that it will become more valuable in the near future.
A Spinning Top is a Japanese candlestick with a small real body and long upper and lower shadows. It signifies market indecision
Also known as the current market price.
A contract for immediate or “on the spot” delivery, as opposed to a currency or futures contract with a future expiry date. Used in forex trading to denote the immediate exchange of currencies.
The stochastic oscillator is a momentum indicator that is widely used in forex trading to pinpoint potential trend reversals
A stock (also known as “shares” or “equity”) is a type of security that signifies proportionate ownership in the issuing corporation. This entitles the stockholder to that proportion of the corporation’s assets and earnings
A stop order is an order to buy or sell once a pre-defined price is reached. When the price is reached, the stop order becomes a market order and is executed at the best available price. It is important to remember that stop orders can be affected by market gaps and slippage, and will not necessarily be executed at the stop level if the market does not trade at this price. A stop order will be filled at the next available price once the stop level has been reached. Placing contingent orders may not necessarily limit your losses.
A limit order in which a trade is closed when a specified price is reached causing a loss. Used to limit amount of losses in trades.
A price that acts as a ground level for past or future price movements. Traders are likely to buy at these levels
A currency swap is the simultaneous sale and purchase of the same amount of a given currency at a forward exchange rate.
Swing trading is a speculative trading strategy in financial markets where a tradable asset is held for between one and several days in an effort to profit from price changes or ‘swings’.
A symmetrical triangle is a chart pattern characterized by two converging trend lines connecting a series of sequential peaks and troughs. These trend lines should be converging at a roughly equal slope.
T
An order used by currency traders to automatically close their position once a certain profit has been made.
The process by which charts of past price patterns are studied for clues as to the direction of future price movements. (Price Action)
Total supply is the total number of cryptocurrencies or digital tokens that are in existence, including those circulating in the public market and those that are locked or reserved.
Measures the difference in value between imported and exported goods and services. Nations with trade surpluses (exports greater than imports), such as Japan, tend to see their currencies appreciate, while countries with trade deficits (imports greater than exports), such as the US, tend to see their currencies weaken.
The total amount of a cryptocurrency that was traded during a certain period of time.
A trailing stop allows a trade to continue to gain in value when the market price moves in a favorable direction, but automatically closes the trade if the market price suddenly moves in an unfavorable direction by a specified distance. Placing contingent orders may not necessarily limit your losses.
Price movement that produces a net change in value. An uptrend is identified by higher highs and higher lows. A downtrend is identified by lower highs and lower lows.
A triple bottom is a bullish chart pattern used in technical analysis that’s characterized by three equal lows followed by a breakout above the resistance level
The triple top is a type of chart pattern used in technical analysis to predict the reversal in the movement of an asset’s price. Consisting of three peaks, a triple top signals that the asset is no longer rallying, and that lower prices are on the way.
Total value of money of all executed transactions in a given time period.
When both a bid and offer rate is quoted for a forex transaction.
U
The interest rate at which U.S. banks will lend to their main corporate customers.
Measures the total workforce that is unemployed and actively seeking employment, measured as a percentage of the labor force.
Theoretical profit or loss of an open position determined by current market prices.
A name for the Dow Jones index.
V
Also known as the maturity date, it is the date on which counterparts to a financial transaction agree to settle their respective obligations, i.e., exchanging payments. For spot currency transactions, the value date is normally two business days forward.
Funds traders must hold in their accounts to have the required margin necessary to cope with market fluctuations.
A measure of the amount by which an asset price is expected to fluctuate over a given period.
W
A way of storing your cryptocurrency.
Usually associated with cryptocurrencies Buying or selling a good, asset, or stock from oneself. You trade with yourself in order to create the illusion of demand and market activity.
Chart formation that shows a narrowing price range over time, where price highs in an ascending wedge decrease incrementally, or in a descending wedge, price declines are incrementally smaller. Ascending wedges typically conclude with a downside breakout and descending wedges typically terminate with upside breakouts.
This term signifies a trader with a huge amount of capital, usually one who is bullish (believes prices will rise) on the price of a specific cryptocurrency
Slang for a highly volatile market where a sharp price movement is quickly followed by a sharp reversal.
Whitelist is a list of registered and approved participants that are given exclusive access to contribute to an initial coin offering (ICO) or a presale.
A whitepaper is an informational document that generally informs readers on the philosophy, objectives and technology of a project or initiative.
Where a limit order has been requested but not yet filled.
Acronym for The Wall Street Journal.
X
A currency that trades in markets outside of its domestic borders. “Xeno” is a prefix meaning strange or foreign.
Symbol for AMEX Composite Index.