Your complete trading dictionary
We offer clear, well-structured definitions and explanations to help you quickly understand key trading terms and make it easier to get started in the world of finance.
Basic concepts of financial markets
Asset
This is a financial instrument that can be traded to potentially generate profits, such as stocks, commodities, currencies, or indices. Assets represent valuable opportunities for investors to grow their capital.
Bid
This is the highest price a buyer is willing to pay for an asset. It reflects active market demand and is crucial for identifying favorable entry points.
Ask
This is the lowest price at which a seller is willing to part with an asset. It reflects the market's willingness to sell and provides buyers with clarity for their purchasing decisions.
Spread
This is the difference between the bid and ask price and represents the trading costs. It provides liquidity to users.
Quotation
This is the current price at which a particular asset can be bought or sold. It helps traders make informed decisions based on real-time market data.
currency pair
This is a comparison of the value of one currency relative to another. It forms the basis of currency trading.
trend
This is the general direction in which the market or a particular asset is moving. Identifying trends helps traders align themselves with market dynamics and make strategic decisions.
Account and platform interaction
Customer account
This is a personalized profile where funds, trading history, and settings are securely stored. It allows clients to easily manage and access their trading activities.
Customer terminal
This is the software interface through which a client interacts with the trading environment. It provides tools for monitoring the markets and efficiently placing trades.
Trading platform
This is the digital system where customers can trade and analyze markets. It offers essential tools and real-time data in a user-friendly format.
server
This is the technology that processes orders and manages data exchange between clients and brokers. It ensures speed, reliability, and smooth operation.
Identification data
This is personal information used to verify a customer's identity. It promotes security and protects access to commercial services.
KYC
This is the "Know Your Customer" process, which verifies a customer's identity before they can take any action. It strengthens security and ensures compliance with regulations.
workday
This is a working day when financial institutions and trading systems are open. It helps customers know when they can access services and make trades.
Types of orders and positions
order
This is an instruction from a trader to buy or sell an asset under specific conditions. It initiates engagement with the financial markets in a clear and structured manner.
Order Level
This is the specific price at which a trader wants to execute a buy or sell order. It enables precise planning and helps to achieve defined trading goals.
Open position
This is a trade that has already been placed but not yet closed. It reflects a trader's active participation in the market.
Locked position
This occurs when a trader holds both a buy and a sell position in the same asset. This can help manage risk or allow traders to wait for better market clarity.
Long position
This occurs when a trader buys an asset in the expectation that its value will increase. It indicates a positive market outlook and potential for a return.
Short position
This occurs when a trader sells an asset in anticipation of a price decline, with the intention of buying it back later. It offers a way to profit from falling markets.
Stop Loss
This is a tool that automatically closes a trade when it reaches a certain loss level. It supports responsible risk management and protects the account.
Functions of balance and calculations
balance
This is the total amount of funds in a trading account after all completed trades and transactions. It shows the confirmed value available for future use.
Pending gains/losses
This is the current profit or loss from open trades that are not yet closed. It provides real-time insights into the performance of a position.
Free Margin
This is the amount of funds available to open new trades or support existing ones. It gives traders flexibility and helps them manage multiple positions.
Hedged Margin
This is the margin required when holding opposing positions in the same asset. It helps maintain balance while the trades remain active.
Required margin
This is the minimum amount of funds required to open or maintain a position. It ensures responsible trading and supports account stability.
credit
This is a bonus or temporary amount added to an account, often offered by brokers. It increases trading capacity and supports greater flexibility.
Funds
This is the total amount of money in a trading account, including deposits and earnings. It is the basic resource required to participate in trading.
Types of analysis and strategies
Fundamental analysis
This involves studying economic indicators, news, and financial reports to predict market behavior. It provides deeper contextual information for long-term decisions.
Technical analysis
This involves analyzing price patterns, charts, and historical data to guide trading. It supports decisions based on observable trends and signals.
Technical indicator
This is a tool used in charts to highlight potential market movements based on mathematical calculations. It improves decision-making with visual clarity.
Options
This is a financial contract that grants the right, but not the obligation, to buy or sell an asset at a predetermined price. It offers opportunities for flexible strategies.
Leverage
This feature allows traders to control larger positions with a smaller portion of their own capital. It increases potential returns and makes entry more accessible.
Scalping
This is a fast-paced trading strategy that focuses on generating small profits from quick trades. It allows active traders to profit from short-term price movements.
Swing Trading
This is a medium-term strategy where traders hold positions for several days to take advantage of market waves. It balances timing and analysis for well-considered trading opportunities.
Account and transaction control
Force majeure or emergency
This is an exceptional situation that impairs the company's ability to meet its obligations. A natural disaster can be an example of such circumstances.
Margin Call
This is a dynamic feature that helps traders maintain optimal account performance by prompting them to increase their positions and continue to actively interact with the market.
Security
This is the basis of every transaction, be it a stock or commodity deal, and represents the value and the gateway to diversified investment opportunities.
Completed transaction
This is the successful execution of a trade from start to finish and marks a clear and organized process that supports precise portfolio management.
Stop Out Level
This is an automated system that improves trading efficiency by optimizing account movements when certain parameters are met and ensuring continuous alignment with market conditions.
Request for Quotation (RFQ)
This is a transparent and on-demand price request tool that allows retailers to receive tailored quotes, enabling informed and confident decisions.
liquidity
This is the ease with which assets can be exchanged, offering flexibility and speed in executing trades in the global financial markets.