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Get access to an extensive list of trading related terms. Grab information about all the market-related terminologies with the terms below.

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Arbitrage

Arbitrage refers to the practice of buying an asset and immediately selling it in order to take the advantage of a difference in price.

Ask Price

The ask price is the price at which a trader can buy an asset from a seller.

Bear Market

The market with the continuous fall in the price of the financial instrument is known as the bear market.

Bid Price

The bid price is the price at which a trader can sell an asset to a buyer.

Broker

A broker is an individual or a company that charges a commission for executing a buy or sell order on behalf of a trader.

Bull Market

The market with the continuous rise in the price of the financial instrument is known as the bullish market.

Bullion

Bullion refers to those precious metals that are at least 99.5% pure and are casted into bars or other non-coin forms.

Buy

Buying a financial instrument means taking ownership of the financial instrument.

Call

A call is a type of option that gives the buyer the right but not the obligation to buy a certain financial instrument at a certain date, at a certain price.

Cash Settlement

Cash settlement refers to the settlement method in which the seller of the financial instrument does not deliver the commodity, but transfer the associated cash position.

Commission

Commission is the charge levied on a trader for trading.

 

 

Fixed Rate

Fixed Rate refers to the contractually determined interest rate that is fixed at the outset that does not vary over the life of the instrument.

Floating Rate

A floating interest rate refers to a variable interest rate that changes over a period of time.

Forex

Forex refer to the global market for the trading of currencies.

Forex Trading

Forex trading is the act of taking part in the forex market in order to speculate and attempt to make a profit.

Fundamental Analysis

Fundamental analysis is the method of evaluating the securities in order to measure the underlying forces that affects the well-being of the economy.

Futures

An exchange-traded agreement to take or make delivery of an asset at a specific time in the future for a specific price agreed today. Contracts are standardized in order to facilitate trading on a futures exchange.

 

Hedge

A hedge is an investment or trade that is designed to reduce your existing exposure to risk.

Intrinsic Value

Intrinsic value is the inherent worth of a company, investment, or asset based on its fundamental characteristics and earning power.

 

 

Leverage

Leverage is a concept that enables individuals to multiply your exposure to a financial market without committing extra investment capital.

Liquidity

Liquidity is the ease of buying or selling a particular asset in the market without affecting the price of the financial security. It can also be defined as a facility to convert an asset to cash quickly and easily.

Long Position

Long position is the condition wherein a trader buys an instrument and then sells it later.

Market

Market can be defined as a medium through which the assets can be traded, with their value determined by the supply and demand.

Margin

Margin refers to the total amount of money deposited by the parties involved in contract in order to ensure the performance of the terms of contract is fulfilled.

Margin Call

A call made by a clearing house to the investor to inject further cash in order to bring the margin deposits to the required minimum level.

 

Offer Price

Offer price is the price at which a seller is willing to sell an instrument.

Option Contract

Option Contract is the contract that gives the buyer of the contract the right but not the obligation to buy a specified quantity of commodities at a specified timeframe and vice versa.

Payout

Payout refers to the expected financial return or monetary disbursement from an investment.

Put Options

Put Options is an option which gives the holder of the option a right to sell an underlying financial instrument at a specified price.

 

 

Settlement Price

Settlement Price is the price at which the contract is settled.

Spot Price

Spot Price refers to the market price of the financial instrument at which it can be traded immediately.

Spreads

The spread is the difference in price between the buy and sell prices quoted for an instrument.

Strike Price

Strike Price refers to the price at which the trader of a call or put option can choose to exercise his right to purchase or sell the derivative contract. In case of call option, the strike price refers to the price at which the derivative contract can be bought by the option buyer till the expiration date, whereas in case of put option, the strike refers to the price at which the option can be sold by the trader.

Technical Analysis

The technical analysis refers to the process of predicting the movements in the price of the financial products in the future on the basis of the past price trends.

Theoretical Value

The theoretical value refers to the estimated value of the contract which is mathematically derived.

Tick

Tick refers to the minimal allowable change in the price movements for a contract.

Underlying Asset

Underlying asset refers to the financial instrument on which the price of the derivative is based on.

Volatility

Volatility refers to the change in the price of the financial instruments over a specified period of time.

Volume

Volume refers to the total number of buy and sell of contracts over a specified time period. It generally refers to the total number of transaction that is carried out for one trading day.

 

 

Yield

Yield refers to a certain amount earned on an investment, over a certain period of time.