A
ADR (Average Daily Range)
The average difference between the highest and lowest prices of a currency pair within one trading day.
Arbitrage
The practice of profiting from price differences of the same asset across different markets.
Ask Price
The lowest price at which a seller is willing to sell a currency pair.
ATM (At the Money)
A situation where an option’s strike price is equal to the current market price of the underlying asset.
Adjustment
Price adjustment due to dividends, stock splits, or other corporate actions.
ADR (American Depository Receipt)
A negotiable certificate representing shares in a foreign company traded in the US.
Algorithmic Trading
Using computer programs to execute trades automatically based on pre-set rules.
Alpha
The excess return of an investment relative to a benchmark index.
Ask-Bid Spread
The difference between the lowest ask price and the highest bid price.
Asset Allocation
The distribution of investments across various asset classes to manage risk.
At-the-Money (ATM)
An option whose strike price is equal to the current market price of the underlying asset.
At-the-Money (ATM) Option
An option contract with a strike price equal to the current market price.
Average Price
The mean price of a security over a specific period or trade execution.
Airdrop
Distribution of free tokens to users.
Altcoin
Any cryptocurrency other than Bitcoin.
AML (Anti-Money Laundering)
Regulations to prevent money laundering in crypto.
APY (Annual Percentage Yield)
The real rate of return on crypto investments with compounding.
APR (Annual Percentage Rate)
Annual interest rate without compounding.
ASIC (Application-Specific Integrated Circuit)
Hardware designed for mining specific cryptocurrencies.
ATH (All-Time High)
Highest price ever reached by a cryptocurrency.
ATL (All-Time Low)
Lowest price ever reached by a cryptocurrency.
Atomic Swap
Exchange of cryptocurrencies across chains without intermediaries.
Avalanche Effect
A chain reaction where a small change triggers large-scale effects.
Account Equity
The total value of a trading account, including deposits, profits, and losses.
Account Leverage
The ratio of borrowed funds to the trader's own funds used in the account.
Allocation
The distribution of funds or positions by an investor.
B
Bar Chart
A chart that displays price movements using vertical bars representing the open, high, low, and close prices.
Bear Market
A market condition where prices are consistently falling, indicating pessimism among traders.
Bid Price
The highest price a buyer is willing to pay for a currency pair.
Bid-Ask Spread
The difference between the bid and ask prices, representing the transaction cost or market liquidity.
Big Figure
The integer part of an exchange rate quotation, often omitted in forex trading to simplify pricing.
Black Swan
A rare and unpredictable event that has a major impact on financial markets.
Blockchain
A decentralized digital ledger that records transactions securely and transparently across a network.
Breakeven Point
The price level at which a trade neither makes a profit nor a loss.
Broker
A company or individual that executes trades on behalf of clients in exchange for a commission or fee.
Bull Market
A market condition where prices are rising steadily, showing optimism among investors.
Bullish Engulfing
A bullish candlestick pattern that signals a potential trend reversal from bearish to bullish.
Buy Limit Order
An order to buy an asset at or below a specified price.
Buy Stop Order
An order to buy once the price rises to a certain level, used to enter a position in a breakout.
Backtest
Testing a trading strategy using historical market data.
Bearish Divergence
When prices reach new highs but technical indicators fail to confirm.
Beta Index
A measure of a stock's volatility relative to the market.
Block Trade
A large trade executed privately to minimize market impact.
Blue Chip Stock
Shares of a well-established, financially stable company.
Bollinger Bands
A technical indicator consisting of a moving average and standard deviation bands.
Breakout
Price movement beyond a defined support or resistance level.
Bullish
Expectation that the price of an asset will rise.
Bullish Divergence
When prices reach new lows but technical indicators do not, suggesting potential upward movement.
Bagholder
An investor holding crypto that has dropped in value.
Bear Trap
A false market signal causing short-sellers to lose.
Bitcoin
The first and most recognized cryptocurrency.
Block
A collection of transactions recorded on a blockchain.
Bridge
Technology to transfer assets between blockchains.
Burn / Token Burn
Permanently removing tokens from circulation.
Bull Trap
A false upward signal causing buyers to lose.
Backtesting
Using historical data to test a trading strategy.
Balance
The total available funds in a trading account.
Bid/Ask Spread
The difference between the bid price and ask price in the market.
Broker Spread
The difference set by the broker between buy and sell prices as their profit margin.
Brokerage Fee
Fees charged by a broker for executing trades.
Burn Rate
The speed at which a business or account consumes funds over time.
C
Call Option
A financial contract that gives the holder the right to buy an asset at a specific price before expiration.
Candlestick Pattern
A visual representation of price action that helps identify market trends and reversals.
Carry Trade
A strategy of borrowing in a low-interest currency to invest in a higher-yielding one.
Central Bank
A national institution that manages monetary policy, interest rates, and currency supply.
CFD (Contract for Difference)
A financial derivative allowing traders to speculate on price movements without owning the underlying asset.
Chart Analysis
The study of price charts to forecast future market movements.
Chart Pattern
Repetitive shapes on a chart that indicate potential price movements or trend changes.
Clear
The process of settling trades by transferring funds and ownership between buyers and sellers.
Clip
A specific trade size or batch used to measure trading volume.
Close Price
The final price of a currency pair at the end of a trading session.
Collateral
An asset pledged by a trader to secure a loan or margin position.
Commodity Currency
A currency closely linked to the price of export commodities, such as the AUD or CAD.
Compression
A market phase where price volatility decreases and trading ranges tighten.
Consolidation
A period when prices move sideways, indicating market indecision before a breakout.
Convertibility
The ability of a currency to be freely exchanged for another currency or asset.
CoT (Commitments of Traders)
A weekly report showing the positions held by different types of traders in futures markets.
Counter Trend
A trading approach that goes against the current market trend.
Counterparty
The other party involved in a financial transaction.
Cross Currency
A currency pair that does not include the US dollar.
Cross Currency Pair
A forex pair that excludes the USD, such as EUR/JPY or GBP/CHF.
Currency Pair
The quotation of one currency against another, like EUR/USD.
Currency Peg
A policy where one currency’s value is fixed to another currency, such as HKD to USD.
Cyclical Asset
An asset whose performance tends to follow the ups and downs of the economic cycle.
Capital Efficiency
The ability of a company to generate profit from its capital.
Capital Gain
Profit from the sale of an asset at a higher price than its purchase price.
Capital Structure
The mix of a company’s debt and equity financing.
Capitalization (Market Cap)
The total market value of a company's outstanding shares.
Cash Flow
The net amount of cash generated or used by a company during a period.
Certificate of Deposit (CD)
A bank-issued savings certificate with a fixed interest rate and maturity date.
Circuit Breaker
A temporary halt in trading to prevent panic selling.
Clearing House
An organization that facilitates settlement of trades between buyers and sellers.
Closed-End Fund
An investment fund with a fixed number of shares traded on exchanges.
Closes Above Resistance
When the closing price surpasses a resistance level, indicating potential upward momentum.
Collateralized Debt Obligations (CDO)
A structured financial product backed by a pool of loans or bonds.
Contrarian Investing
A strategy of going against prevailing market trends.
Convertible Bond
A bond that can be converted into a predetermined number of shares.
Cost Averaging
Investing a fixed amount regularly to reduce the impact of volatility.
Cost of Capital
The cost a company incurs to raise funds, including debt and equity.
Cost of Equity
The return required by equity investors for investing in a company.
Covered Call
A strategy of holding stock while selling call options to generate income.
Covering a Short Position
Buying back a security to close a short position.
Credit Default Swap (CDS)
A financial derivative used to transfer credit risk of a borrower.
Crossover
A signal generated when a short-term moving average crosses a long-term moving average.
Crowded Trade
A trade that has become popular and may be susceptible to reversal.
Cumulative Dividend
Dividends that accumulate if not paid in a given period.
Current Ratio
A measure of a company's ability to pay short-term obligations with current assets.
Cyclical Stock
Stocks whose performance is closely tied to the economic cycle.
CEX (Centralized Exchange)
Crypto exchange managed by a central organization.
CEX Aggregator
Platform aggregating liquidity from multiple CEXs.
Circulating Supply
Total number of tokens available in the market.
Cloning
Copying an existing cryptocurrency project.
Cold Wallet
Offline wallet for secure crypto storage.
Composability
Ability of DeFi protocols to work together.
Consensus Mechanism
Rules for validating blockchain transactions.
Cross-Chain
Transactions or protocols working across different blockchains.
Crypto Wallet
Software or hardware for storing cryptocurrencies.
Cryptocurrency
Digital currency secured by cryptography.
Curve Finance
A DeFi protocol for stablecoin trading.
Candlestick Chart
A chart showing price movements including open, close, high, and low prices.
Capital Gains Tax
Tax paid on profits from the sale of assets.
Charting
The use of charts to analyze market trends.
CFD Market
A market consisting of CFD traders buying and selling contracts based on asset price differences.
Close Position
Closing an existing position to lock in profit or loss.
Commodities
Assets such as gold, oil, and agricultural products, tradable via CFDs.
Contract for Difference (CFD)
A CFD product representing the difference in price of an underlying asset.
Contract Size
The amount of the underlying asset represented by a CFD contract.
Corporate Action
Company decisions like dividends or stock splits that affect the market.
Custodian
A financial institution responsible for safeguarding client funds and assets.
D
Day Order
An order that remains active only during the trading day and expires at market close.
Day Trading
A trading strategy focused on opening and closing positions within the same day.
Decimals
The number of decimal places used in quoting currency prices.
Demand Zone
A price area where buying interest is strong enough to prevent further decline.
Derivatives
Financial instruments whose value is derived from an underlying asset.
Divergence
A situation where price movement and an indicator move in opposite directions, signaling a possible reversal.
Double Bottom
A bullish reversal pattern formed after two consecutive lows at similar levels.
Double Top
A bearish reversal pattern formed after two consecutive highs at similar levels.
Dow Theory
A foundational market theory that defines trends and market phases.
Downtrend
A market condition characterized by lower highs and lower lows over time.
Drawdown
The reduction in account equity after a losing trade or series of losses.
DXY (US Dollar Index)
A measure of the value of the US dollar relative to a basket of major foreign currencies.
Debt-to-Equity Ratio (D/E)
A measure of a company's financial leverage calculated by dividing total debt by shareholders' equity.
Defensive Stock
Stocks that tend to remain stable during economic downturns.
Dividend
Payment made by a company to its shareholders from profits.
Dividend Cover
A ratio indicating how easily a company can pay dividends from net income.
Dividend Payout Ratio
The percentage of earnings paid out as dividends to shareholders.
Dividend Reinvestment Plan (DRIP)
A program allowing shareholders to reinvest dividends to purchase more shares.
Dividend Yield
Dividend per share divided by the price per share, expressed as a percentage.
Dodd-Frank Act
U.S. legislation aimed at financial reform and consumer protection.
DAO (Decentralized Autonomous Organization)
Blockchain-based organization managed by rules encoded in smart contracts.
DApp (Decentralized Application)
Application running on a blockchain without central authority.
DeFi (Decentralized Finance)
Financial services built on blockchain without intermediaries.
DEX (Decentralized Exchange)
Exchange operating without a central authority.
DYOR (Do Your Own Research)
Encouragement to research before investing.
Dusting Attack
Sending tiny amounts of crypto to trace wallet activity.
Daily Pivot Point
Key support/resistance levels calculated from daily open, high, low, and close prices.
Default Margin
Minimum margin required by a broker to open a position.
Default Margin Level
Minimum margin percentage required by a broker to maintain a position.
Derivative
Financial instruments like futures, options, or CFDs whose value derives from underlying assets.
Derivative Market
Markets where derivatives like CFDs are traded.
Dividend Adjustment
Price adjustment on a CFD on the ex-dividend date.
Drawdown Period
The period from the highest account value to the lowest.
Dual-Listed
Securities listed on two different exchanges.
E
ECN (Electronic Communication Network)
A digital system that connects traders directly to liquidity providers for faster trade execution.
Economic Calendar
A schedule of upcoming economic events and data releases that can affect markets.
Economic Data
Statistical information reflecting a country’s economic performance, such as GDP or employment rates.
EMA (Exponential Moving Average)
A moving average that gives more weight to recent price data for faster trend detection.
Employment Report
A key economic indicator showing job creation and unemployment rates within an economy.
End of Day (EOD)
The time when the trading session closes and daily data is finalized.
Envelopes
A technical indicator using bands above and below a moving average to signal overbought or oversold conditions.
EUR/USD
The most traded currency pair in the forex market, representing the euro against the US dollar.
Exchange Rate
The value of one currency expressed in terms of another.
Exponential Moving Average (EMA)
A type of moving average that reacts more quickly to recent price changes.
Earnings Before Interest and Taxes (EBIT)
A measure of a company's profitability excluding interest and taxes.
Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)
A measure of a company's operating performance before non-cash expenses.
Earnings Per Share (EPS)
A company's profit divided by the number of outstanding shares.
Economic Moat
A sustainable competitive advantage that protects a company from competitors.
Equity Financing
Raising capital by selling shares of the company.
Ex-Dividend
The date on which a stock starts trading without the value of its next dividend.
Ex-Dividend Date
The first day a stock trades without its dividend included in the price.
Excess Return
The return of an investment above a benchmark or risk-free rate.
Exchange Traded Fund (ETF)
A marketable security tracking an index, commodity, or basket of assets.
Exchange Traded Note (ETN)
An unsecured debt security that tracks an underlying index.
Exit Strategy
A plan for selling a security or closing an investment position.
Emission Rate
The rate at which new tokens are issued.
ERC-20
Standard for creating tokens on Ethereum.
Earnings Report
A company’s quarterly or annual financial report.
Entry Point
The price level at which a trade is initiated.
Execution Price
The actual price at which a trade is executed.
Exit Point
The price level at which a trade is closed.
F
Fed (Federal Reserve)
The central bank of the United States, responsible for setting monetary policy.
Fibonacci Extension
A tool used to project possible future price levels based on Fibonacci ratios.
Fibonacci Retracement
A technical analysis tool for identifying potential support and resistance levels.
Flag Pattern
A continuation chart pattern that forms during a brief consolidation before the trend resumes.
Flat Market
A condition where prices move sideways with little volatility.
Floating Rate
An interest rate that changes based on an underlying benchmark or market condition.
Follow Through
The continuation of market momentum in the same direction after a breakout.
Forex (Foreign Exchange)
The global marketplace for trading national currencies.
Forex Broker
A firm that provides traders access to the forex market and trade execution.
Forex Market
The decentralized global market where currencies are bought and sold.
Forex Rate
The price of one currency in exchange for another in the forex market.
Forward Contract
An agreement to buy or sell a currency at a predetermined price on a future date.
Fractal
A recurring geometric pattern used in technical analysis to identify market reversals.
Free Margin
The amount of equity in a trading account available for opening new positions.
Fundamental Analysis
The study of economic, financial, and political factors to forecast currency price movements.
Futures Contract
A standardized agreement to buy or sell an asset at a predetermined price on a specific future date.
Futures Market
A marketplace for trading futures contracts.
Financial Leverage
Using borrowed funds to increase potential returns on investment.
Fixed Income
Investments providing regular, fixed payments, such as bonds.
Float
The number of shares available for trading in the market.
Foreign Exchange (Forex)
The market for buying and selling currencies.
Forward Guidance
Communication by authorities regarding expected future monetary or financial conditions.
Free Cash Flow
Cash generated by a company after accounting for capital expenditures.
Front-End Load
A fee paid when purchasing a mutual fund.
Fiat Currency
Government-issued currency like USD or EUR.
Flash Loan
Instant, uncollateralized loan on DeFi platforms.
FOMO (Fear Of Missing Out)
Anxiety driving investors to buy quickly.
Front-running
Exploiting knowledge of pending transactions for profit.
FUD (Fear, Uncertainty, Doubt)
Negative information causing panic selling.
FOMO (Fear of Missing Out)
Psychological effect causing overtrading due to fear of missing opportunities.
Financial Instrument
Assets such as stocks, bonds, options, or CFDs.
Floating Profit/Loss
Unrealized P&L of open positions at current market price.
G
Gap
A price area on a chart where no trading occurred, often signaling potential market momentum.
Gap Trading
A strategy that focuses on profiting from price gaps in the market.
Gapping
A sudden movement in price creating a gap on the chart.
Golden Cross
A bullish signal when a short-term moving average crosses above a long-term moving average.
Gross Margin
Revenue minus cost of goods sold, divided by revenue.
Growth Stock
Stocks expected to grow faster than the overall market.
Gas Fee
Transaction fee on networks like Ethereum.
Governance Token
Token used to vote on protocol changes.
Gamma
The rate of change of an option's delta relative to the underlying asset price.
H
Head and Shoulders
A reversal pattern indicating a trend change from bullish to bearish or vice versa.
Hedging
A strategy used to reduce or eliminate potential losses in a position.
High
The highest price reached by a currency pair during a specific trading period.
High Frequency Trading (HFT)
Algorithmic trading that executes a large number of orders at extremely high speeds.
Holding Period
The length of time a trader holds a position before closing it.
Hot Wallet
A cryptocurrency wallet connected to the internet, used for frequent transactions.
Hedge
An investment made to reduce the risk of adverse price movements.
Hedge Fund
A pooled investment fund using various strategies to earn active returns.
Hedging Strategy
Techniques to offset potential losses in investments.
High Water Mark
The highest peak value that a fund has reached, used for performance fees.
High Yield
Investments with high return potential, often carrying higher risk.
Historical Volatility
A measure of past price fluctuations of a security.
Halving
Event reducing crypto mining rewards by half.
Hash Rate
Measure of computational power in mining.
HODL
Holding crypto regardless of price fluctuations.
High-Frequency Trading (HFT)
Using algorithms for a high volume of rapid trades, often in milliseconds.
Hot Forex
Forex pairs with high volatility and market attention.
I
IBD (Initial Balance Day)
The first period of trading activity in a day, often used to identify breakout levels.
In-the-money (ITM)
An option that would result in a profit if exercised immediately.
Inflation
The rate at which the general price level of goods and services rises, decreasing purchasing power.
Interest Rate
The cost of borrowing money, usually expressed as a percentage.
Interest Rate Differential
The difference between interest rates of two currencies in a currency pair.
Intraday Trading
Buying and selling assets within the same trading day to profit from short-term price movements.
Inverse Correlation
A relationship where two assets move in opposite directions.
Iron Condor
An options trading strategy combining a bull put spread and a bear call spread to limit risk.
Impulse Wave
A strong price movement in the direction of the main trend.
In-the-Money (ITM)
An option with intrinsic value (profitable if exercised).
Income Stock
Stocks that provide regular dividends.
Index
A statistical measure representing a group of stocks or the overall market.
Index Fund
A fund designed to replicate the performance of a market index.
Inflation Hedge
An investment intended to protect against loss of purchasing power due to inflation.
Initial Margin
The minimum amount of capital required to open a leveraged position.
Initial Public Offering (IPO)
The first sale of a company’s shares to the public.
Insider Buying
Purchases of a company’s stock by executives or directors.
Insider Selling
Sales of a company’s stock by executives or directors.
Insider Trading
Trading based on non-public, material information.
Institutional Investor
Organizations that invest large sums of money, e.g., pension funds or mutual funds.
Intrinsic Value
The actual value of an asset or option based on fundamentals.
ICO (Initial Coin Offering)
First sale of a new cryptocurrency to raise funds.
IDO (Initial DEX Offering)
Token launch directly on a decentralized exchange.
Impermanent Loss
Temporary loss in liquidity pools compared to holding assets.
Interoperability
Ability for different blockchains to work together.
J
J-Curve
A pattern showing an initial deterioration followed by improvement, often used in economics or trade balances.
Jump
A sudden significant movement in the price of a security.
Junk Bond
A high-risk, high-yield bond with lower credit ratings.
K
Knock-In Option
An option that becomes active only if the underlying asset reaches a specified price.
Knock-Out Option
An option that becomes void if the underlying asset reaches a certain price.
KYC (Know Your Customer)
Identity verification for crypto users.
L
Leverage
The use of borrowed funds to increase the potential return of a trade.
Leverage Ratio
The ratio of borrowed funds to a trader’s own capital in a leveraged position.
Limit Order
An order to buy or sell an asset at a specified price or better.
Liquidity
The ease with which an asset can be bought or sold without affecting its price.
Liquidity Pool
A collection of funds provided by traders or investors to facilitate trading and ensure market liquidity.
Long Position
A trade taken with the expectation that the price of an asset will rise.
Lot Size
The standardized quantity of a currency pair or asset traded in a single transaction.
Leveraged ETF
An ETF designed to amplify the returns of an underlying index using leverage.
Liquidation
The process of converting assets into cash, often to close positions.
Lock-In Period
A period during which investors cannot withdraw their funds.
Layer 1
Base blockchain network.
Layer 2
Protocol built on top of a Layer 1 blockchain to improve scalability.
M
Margin
The required deposit to open and maintain a leveraged position.
Margin Call
A broker’s demand for additional funds to maintain a margin account when equity falls below required levels.
Margin Level
The ratio of equity to used margin, indicating the health of a trader’s account.
Market Depth
A measure of supply and demand at different price levels in the order book.
Market Order
An order to buy or sell immediately at the best available price.
Moving Average (MA)
A technical indicator that smooths price data to identify trends over a period.
Margin Trading
Trading using borrowed funds to increase potential returns.
Market Maker
A firm that quotes both buy and sell prices for securities, providing liquidity.
Moving Average Convergence Divergence (MACD)
A trend-following momentum indicator showing the relationship between two moving averages.
Moving Average Ribbon
Multiple moving averages plotted together to indicate trend strength.
Mutual Fund
A pooled investment fund managed professionally for investors.
Market Cap
Total value of a cryptocurrency (price × supply).
MEV (Miner Extractable Value)
Profit miners can make by reordering, including, or excluding transactions.
Metaverse
Virtual world using blockchain and crypto assets.
Mining
Process of validating transactions and creating new coins.
Multi-Sig Wallet
Wallet requiring multiple signatures to authorize transactions.
Market Price
The current trading price of an asset.
Moving Average
A common technical indicator smoothing price fluctuations.
N
Naked Position
A position held without any protective hedging or stop-loss orders.
Naked Trading
Trading without using stop-loss orders or risk management techniques.
Net Position
The total of all long and short positions held in a particular asset or currency.
Neutral Zone
A price range where market sentiment is balanced between buyers and sellers.
No-Dealing Desk (NDD)
A broker model that allows clients to trade directly with liquidity providers without intervention.
Naked Option
An option sold without holding the underlying asset.
Naked Put
Selling a put option without owning the underlying stock.
Net Asset Value (NAV)
The value of a fund’s assets minus liabilities per share.
NFT (Non-Fungible Token)
Unique digital asset representing ownership.
Node
Computer validating blockchain transactions.
Negative Balance Protection
Protection against account balances falling below zero.
O
Open Order
An order that has been placed but not yet executed.
Open Position
A trade that has been opened and not yet closed.
Overbought
A condition where an asset’s price is considered too high and may be due for a correction.
Overnight Position
A position that is held beyond the trading day, subject to overnight financing fees.
Oversold
A condition where an asset’s price is considered too low and may be due for a rebound.
Option
A contract giving the right, but not the obligation, to buy or sell an asset at a set price.
Option Premium
The price paid for an option contract.
Order Book
A record of buy and sell orders for a security.
Over-the-Counter (OTC)
Trading of securities directly between parties, outside an exchange.
On-chain
Activity recorded directly on the blockchain.
Oracle Manipulation
Tampering with external data used by smart contracts.
Oracles
Services providing external data to blockchains.
Overnight Financing
Fees or interest for holding positions overnight.
P
Pairs Trading
A market-neutral strategy that involves taking opposing positions in correlated assets.
Parabolic SAR
A trend-following indicator used to identify potential reversals in price direction.
Pegged Currency
A currency whose value is fixed or stabilized against another currency.
PIP (Percentage in Point)
The smallest price change in a currency pair, typically 0.0001 for most pairs.
PIP Value
The monetary value of a single pip movement in a trade.
Pipette
A fractional pip, representing one-tenth of a standard pip.
Pivot Point
A technical level used to identify potential support and resistance areas in the market.
Point of Control (POC)
The price level at which the highest volume of trading occurs during a given period.
Political Risk
The risk of loss due to political events or instability affecting the market.
Position Size
The quantity of an asset or currency held in a trade.
Position Sizing
The process of determining the appropriate trade size based on risk management rules.
Price Action
The study of historical price movements to make trading decisions.
Price Channel
A range between parallel support and resistance lines that contains price movement.
Price Oscillator
A technical indicator that measures the difference between two moving averages to identify momentum.
Price Tiers
Different levels of pricing used in trading, often for order execution or spreads.
Profit Target
The price level at which a trader plans to close a position to take profits.
Put Option
A financial contract giving the holder the right to sell an asset at a specified price before expiration.
P/E Ratio (Price-to-Earnings Ratio)
Stock price divided by earnings per share.
Passive Investing
Investment strategy aiming to replicate market returns rather than beat them.
PEG Ratio (Price/Earnings to Growth)
P/E ratio divided by the growth rate, measuring valuation relative to growth.
Penny Stock
Low-priced, small-cap stocks with high risk and volatility.
Portfolio
A collection of investments held by an individual or institution.
Portfolio Diversification
Spreading investments across assets to reduce risk.
Price-to-Book Ratio (P/B Ratio)
Stock price divided by book value per share.
Price-to-Sales Ratio (P/S Ratio)
Stock price divided by revenue per share.
Put-Call Parity
The relationship ensuring pricing consistency between puts and calls.
P2E (Play-to-Earn)
Games allowing players to earn crypto.
P2P (Peer to Peer)
Direct exchange between users without intermediaries.
Private Key
Secret key to access crypto funds.
Proof of Stake (PoS)
Consensus mechanism where validators stake tokens.
Proof of Work (PoW)
Consensus mechanism relying on computational work.
Public Key
Key used to receive crypto and verify signatures.
Pump and Dump
Scheme to inflate price and sell at peak.
Pending Order
An order waiting for conditions to be met before execution.
Position
Quantity of assets held in trading.
Price Gap
When an asset’s price jumps between trading sessions.
Price Movement
The fluctuation of market prices.
Profit and Loss (P&L)
Gains or losses realized during trading.
Profit Margin
The profitability of a business or trade, usually net profit over total revenue.
Q
Quantitative Easing (QE)
A monetary policy where central banks purchase financial assets to increase money supply and stimulate the economy.
Quotation Currency
The second currency in a currency pair, used to express the value of the base currency.
Quote
The bid and ask price of an asset at a given time.
R
Range Trading
A strategy that involves buying at support and selling at resistance within a defined price range.
Reversal Pattern
A chart pattern that indicates a potential change in the direction of a trend.
Risk Management
The practice of identifying, assessing, and controlling financial risks in trading.
Risk/Reward Ratio
A measure comparing the potential loss to the potential profit in a trade.
Rally
A rapid increase in the price of a security or market.
Reversal
A change in the direction of the price trend.
Reverse Split
Reducing the number of shares outstanding while increasing the share price proportionally.
Risk Adjusted Return
Return on an investment accounting for the level of risk taken.
Risk-Reward Ratio
The ratio comparing potential profit to potential loss.
Rebase Token
Token that adjusts supply algorithmically to maintain price.
Reentrancy Attack
Exploit where a smart contract is called repeatedly before state updates.
Rollup
Layer 2 solution aggregating transactions for efficiency.
Rug Pull
Scam where project developers abscond with funds.
S
Scalping
A short-term trading strategy aiming to profit from small price movements.
Short Position
A trade taken with the expectation that the price of an asset will decline.
Slippage
The difference between the expected price of a trade and the actual execution price.
Spot Forex
The purchase or sale of a currency for immediate delivery at the current market price.
Spot Price
The current market price at which an asset can be bought or sold for immediate settlement.
Spread Betting
A trading method where profits or losses are based on the accuracy of price movement predictions.
Stop Loss
An order to close a position automatically at a predetermined price to limit losses.
Stop-Loss Order
An order placed to automatically close a position at a specified price to limit potential losses.
Support
A price level where buying interest is strong enough to prevent further decline.
Swap
The interest or cost paid or earned for holding a position overnight in forex trading.
Swing Trading
A trading style that aims to capture short- to medium-term price moves over several days.
S&P 500
A stock market index tracking 500 large-cap U.S. companies.
Sell Limit Order
An order to sell a security at a specified price or higher.
Sell Stop Order
An order to sell a security when it reaches a specified lower price.
Short Selling
Selling borrowed shares to profit from a decline in price.
Short Squeeze
A rapid price increase forcing short sellers to cover positions, further driving up price.
Spread
The difference between the bid and ask price of a security.
Squeeze
A situation where demand or limited supply causes sharp price movement.
Stop Order
An order to buy or sell when a security reaches a specified price.
Support Level
A price level where a security tends to stop falling due to buying interest.
Satoshi
Smallest unit of Bitcoin, 0.00000001 BTC.
SBT (Soulbound Token)
Non-transferable token representing unique attributes.
Seed Phrase
Recovery phrase for crypto wallets.
Sharding
Blockchain scaling method splitting data into pieces.
Smart Contract
Self-executing contract on blockchain.
Snapshot
Record of blockchain state at a specific time.
Solidity
Programming language for Ethereum smart contracts.
Stablecoin
Cryptocurrency pegged to a stable asset.
Staking
Locking crypto to earn rewards or secure blockchain.
Synthetic Asset
Token representing another asset’s value.
Stop-Out Level
Account equity level at which positions are forcibly closed.
Support and Resistance
Price levels where assets tend to stop falling (support) or rising (resistance).
T
Take Profit
A price level set to automatically close a trade to secure profits.
Take Profit Order
An order to close a position automatically when a specific profit target is reached.
Technical Analysis
The study of past price movements and patterns to forecast future market behavior.
Tick
The smallest possible price movement of a trading instrument.
Trading Signal
An indication, often from technical analysis, suggesting when to buy or sell.
Trend Line
A line drawn on a chart to indicate the direction and strength of a trend.
Trend Reversal
A change in the market trend from bullish to bearish, or vice versa.
Trendline
Another term for a line indicating the direction of the market trend.
Time Decay
The reduction in an option’s value as it approaches expiration.
Total Return
The overall return on an investment, including price appreciation and dividends.
Trading Volume
The total number of shares or contracts traded for a security.
Testnet
Blockchain network for testing purposes.
Token Vesting
Schedule of token release to holders.
Tokenomics
Economic design of a cryptocurrency.
Tornado Cash
Privacy protocol for Ethereum transactions.
Trading Pair
Two cryptocurrencies traded against each other.
TVL (Total Value Locked)
Total assets staked in a DeFi protocol.
Tick Size
The smallest price movement of an asset in trading.
Tick Value
Value of each tick movement in the market.
Trade Size
Amount of asset in a single trade.
Trading Hours
The open and close times of a market.
Trading Platform
Online tool or software used to execute trades.
U
Underlying Asset
The asset on which a derivative’s value is based.
Unsecured Bond
A bond not backed by collateral, relying on the issuer’s creditworthiness.
Utility Token
Token granting access to platform services.
V
Volatility
The measure of how much an asset’s price fluctuates over a period of time.
Volume
The total number of contracts or units traded for a specific asset during a period.
VWAP (Volume Weighted Average Price)
An average price weighted by volume, used to measure trading efficiency.
Volatility Index (VIX)
A measure of market expectations for future volatility.
Validator
Node responsible for validating blockchain transactions.
Volatility Index
An index measuring expected market volatility, e.g., VIX.
W
Wedge Pattern
A chart pattern that indicates a narrowing price range and potential breakout.
Whipsaw
A situation where the price rapidly changes direction, causing losses in volatile markets.
Warrant
A security giving the right to buy shares at a specific price before expiration.
White Label ETF
An ETF issued by one company but rebranded and sold under another name.
Wallet Address
Public address to send or receive crypto.
Web3
Internet built on blockchain technology.
Whale
Individual or entity holding a large amount of crypto.
Whitepaper
Document outlining a crypto project.
X
XAG/USD
The currency pair representing the price of silver quoted in US dollars.
XAU/USD
The currency pair representing the price of gold quoted in US dollars.
Y
Yield
The return on an investment, usually expressed as a percentage of the initial investment.
Yield Curve
A graph showing interest rates across different maturities of debt.
Yield Farming
Earning rewards by providing liquidity in DeFi.
Z
zk-Rollup
Layer 2 solution using zero-knowledge proofs for scalability.