Category
Trading terms
Trading is the buying and selling of financial assets such as shares, currencies and commodities, often over short periods. These terms explain how markets, orders and leverage work and why trading carries real risk. 1,024 Trading terms are explained below, each with real-world examples.
- A D Ratio (ADR)
- Accumulative Swing Index (ASI)
- Active Trading
- Adjusted Exercise Price
- Advance Block
- Advances and Declines
- AEX
- After the Bell
- After-Hours Trading
- Against Actual
- Aged Fail
- Agency Broker
- Agency Cross
- Aggressor (Trading)
- Agio
- Algorithm
- All or None (AON)
- Alternative Trading System
- Amex
- Amplitude
- Andrews' Pitchfork
- Anti-Martingale
- Arbitrageur
- Archipelago
- Arrears Swap
- Ascending Channel
- Ask
- Ask Size
- Asset Swap
- Asset Swapped Convertible Option Transaction (ASCOT)
- Asset-Backed Credit Default Swap
- Asset-or-Nothing Call Option
- Assignment of Trade (AOT)
- Asymmetric Volatility
- At Best
- At the Market
- At-the-Opening Order
- Auction Market
- AUD
- AUTEX
- Automatic Exercise
- Average Daily Trading Volume
- Average Rate Option
- Average True Range (ATR)
- Averageup
- Ax
- Axe
- Back Up
- Backing Away
- Backspread
- Baltic Dry Index
- Baltic Exchange
- Barronsconfidenceindex
- Basis Differential
- Basis Trading
- Basis Value
- Basisprice
- Basisquote
- Basket Option
- Basket Trade
- Batch Trading
- Batting Average
- Bear Call Spread
- Bear Put Spread
- Bear Squeeze
- Bear Trap
- Bearish Abandoned Baby
- Bearish Belt Hold
- Bearish Engulfing Pattern
- Bearish Harami
- Below the Market
- Bermuda Option
- Bermuda Swaption
- Best Ask
- Best Bid
- Better Alternative Trading System (BATS)
- Bid
- Bid and Ask
- Bid Size
- Bidding Up
- Big Figure
- Bilateral Netting
- Blackscholes
- Block
- Block Order
- Block Trading Facility
- Blocked Period
- Blotter
- Blue Chip Swap
- Board Lot
- Bond Futures
- Bond Option
- Bookout
- Bosnia Herzegovina Convertible Mark BAM
- BOT
- Bottom
- Bourse
- Box
- Box Spread
- Bracketed Buy Order
- Bracketed Sell Order
- Breadth Thrust Indicator
- BRL Brazilian Real
- Broken Date
- Brokered Market
- BSE
- BSX
- Buck
- Bucketing
- Buckthetrend
- Bull
- Bull Position
- Bull Trap
- Bullbearratio
- Bulletgic
- Bullettrade
- Bullish Harami
- Bullishbelthold
- Bulllet
- Bullverticalspread
- Buttonwoodagreement
- Buy
- Buy a Spread
- Buy Signal
- Buy Stop Order
- Buy to Close
- Buy to Cover
- Buy to Open
- Buy Write
- Buy-In
- Buyabounce
- Buybreak
- Buyers Sellers on Balance
- Buying Forward
- Buyminus
- Cable
- Cac40
- Calculation Agent
- Call
- Call Auction
- Call Swaption
- Callable Swap
- Calledaway
- Callwarrant
- Canadian Derivatives Clearing Corporation
- Canceled Order
- Candlestick
- Cap
- Capitulation
- Caplet
- Cappedoption
- Caracasstockexchange
- Carryingbroker
- Cash Contract
- Cash-and-Carry Arbitrage
- Cash-Settled Options
- Cboe
- CBOT
- CCS
- Centralized Market
- Chaikinoscillator
- Chandemomentumoscillator
- Charging Bull
- Charm
- CHF
- Chicago Board Options Exchange CBOE VIX VIX VVIX
- Chooser Option
- Clearing
- Clearing Broker
- Clearing Corporation
- Clearing Fee
- Clearing Price
- Clearstreaminternational
- Climax
- Cliquet
- Close
- Close Location Value (CLV)
- Close Position
- Closedmarkettransaction
- Closing Price
- Closingbell
- CME
- CMS
- Coiled Market
- Combination
- COMEX
- Commitments of Traders (COT) Report
- Competitive Bid Option
- Compound Option
- Conditional Order
- Condor Spread
- Confirmationonachart
- Confluence
- Consolidated Tape
- Consolidation
- Constant Maturity Swap
- Contingency Order
- Continuous Trading
- Contra Broker
- Contract Market
- Contract Size
- Contractunit
- Convergence
- Conversion Arbitrage
- Convertible Bond Arbitrage
- Convertible Currency
- Corner A Market
- Correction
- Corrective Waves
- Cost of Tender
- Count (Point-and-Figure Analysis)
- Counter Currency
- Counterparty
- Countertrend Trading
- Cover
- Covered Combination
- Covered Interest Rate Parity
- Covered Straddle
- Covered Warrant
- Crack
- Crack Spread
- Cramerbounce
- Crash
- CRB
- Credit Spread Option
- Credit Support Annex
- CREST
- Cross
- Cross Currency
- Cross Margining
- Cross Rate
- Cross Trade
- Cross-Currency Swap
- Crossed Market
- Crude Oil
- Crush Spread
- CSCE
- Cumulativevolumeindex
- Cup
- Curbtrading
- Currency Arbitrage
- Currency Basket
- Currency Carry Trade
- Currency Conversion Forex Charts
- Currency Exchange
- Currency Forward
- Currency Future
- Currency Futures
- Currency Strategist
- Currency Trading Forex Brokers
- Currency Trading Platforms
- Current Price
- Curve Steepener Trade
- CZK
- Daily Trading Limit
- Dailycut Off
- Dalalstreet
- Dark Pool Liquidity
- Darvas Box Theory
- Day Trader
- Days to Cover
- Dead Cat Bounce
- Dealer Market
- Dealing Desk
- Death Cross
- Debitspread
- Decimalization
- Deep in the Money
- Deep Out of the Money
- Delivery
- Delivery Date
- Delivery Month
- Delivery Notice
- Delivery Option
- Delivery Point
- Deliveryprice
- Delta-Gamma Hedging
- Deltaneutral
- Demarkerindicator
- Dematerialization
- Demo Account
- Depth of Market
- Derivative
- Derivative Product Company
- Derivativestimebomb
- Descending Channel
- Descending Triangle
- Designated Market Maker (DMM)
- Deutschmark
- Diagonal Spread
- Diamondtop
- Differential
- Direct Quote
- Directaccessbroker
- Directaccesstrading
- Directed Order
- Directional Trading
- Discount Spread
- Discountbroker
- Discretionaryorder
- Disparityindex
- Distribution Stock
- Divergence
- Dividend Arbitrage
- DJTA
- DMI
- Doji
- Dojima Rice Exchange
- Don't Know (DK)
- Donchianchannels
- Dong
- DOP
- Double Top and Bottom
- Doublebarrieroption
- Doublenotouch
- Dow Theory
- Downtrend
- Downvolume
- DTC
- DTCC
- Dummy CUSIP Number
- DVP
- Easeofmovement
- Easytoborrowlist
- ECBOT
- ECN
- ECN Broker
- Economic Derivatives
- EDGX
- Eligible Commercial Entity
- Eligible Contract Participant
- Elliott Wave Theory
- EMA
- Emini
- End of Day Order
- Energy Derivatives
- Entry Point
- Equity Curve
- Equity Derivative
- Equivolume
- Eurex
- Euroclear
- European Best Bid and Offer
- European Terms
- Eveningstar
- Evergreenoption
- Excess Margin Deposit
- Exchange
- Exchange of Futures for Physical
- Exchange Traded Derivative
- Exchangetradedoption
- Executing Broker
- Execution
- Exercise
- Exhaustiongap
- Exotic Currency
- Expiration Time
- Extrinsicvalue
- Fade
- Failure to Deliver (FTD)
- Fakeout
- Falling Knife
- False Signal
- Fast Market
- Fat Finger Error
- Fed Funds Futures
- Fence Options
- Fibonaccifan
- Fibonaccilines
- Fictitious Trade
- Fiduciary Call
- Fill
- Financial Information Exchange
- Firm Order
- Firm Quote
- First Notice Day
- Five Against Bond Spread (FAB)
- Fixed Income Forward
- Fixed-for-Fixed Swap
- Fixed-for-Floating Swap
- Fixing
- Flag
- Flash Crash
- Flash Trading
- Flat
- Flexoption
- Floor
- Floor Broker
- Floor Trader
- FMAN
- FOK
- Footprint Charts
- FOP
- Forced Selling (Forced Liquidation)
- Foreign Currency Option Trading
- Foreign Currency Pairs
- Foreign Currency Swap
- Forex Accounts Managed Mini Demo
- Forex Analysis Fundamental Technical
- Forex Arbitrage
- Forex Arbritrage
- Forex Broker
- Forex Forecast and Forecasting Software
- Forex Futures
- Forex Hedge
- Forex Hedge and Currency Hedging Strategy
- Forex Market
- Forex Market Trading Hours
- Forex Pivot Points
- Forex Signal System
- Forex Spot Rate
- Forex Spread Betting
- Forex System Trading
- Forex Trading Robot
- Forex Trading Strategy
- Forward Commitment
- Forward Delivery
- Forward Discount
- Forward Exchange Contract
- Forward Forward
- Forward Margin
- Forward Market
- Forward Points
- Forward Premium
- Forward Price
- Forward Rate Agreement
- Forward Swap
- Fourthmarket
- Fowardpricing
- Fragmentation
- Freight Derivatives
- Friction Cost
- Front Month
- Fulcrum Point
- Full Carry
- Funding Currency
- Futures
- Futures Bundle
- Futures Commission Merchant (FCM)
- Futures Exchange
- Futures Spread
- Futures Strip
- Futuresmarket
- Gamma Hedging
- Gammaneutral
- Gap
- Gap Risk
- Gartley Pattern
- Gator
- Give-Up Trade
- Global Universal Currency Converter
- Globex
- Gold Option
- Golden Cross
- Good Delivery
- Good This Month (GTM)
- Grading Certificate
- Gravestone Doji
- Gray List
- Greeks
- GSCC
- Guerrilla Trading
- Gypsyswap
- Hammer
- Handle
- Hard-to-Borrow List
- Head Shoulders
- Head Trader
- Headfake Trade
- Heath-Jarrow-Morton (HJM) Model
- Hedging Transaction
- Held Order
- Henry Hub
- Heston Model
- Highclose
- Hikkakepattern
- Hindenburgomen
- Hit the Bid
- HKEX
- Hongkongstockexchange
- Hook Reversal
- Horizontal Spread
- Housemaintenancerequirement
- Hull-White Model
- Hybrid Market
- Iceberg Order
- Ichimoku Cloud
- Ichimokuchart
- Idem
- Illiquid Option
- Imbalanceoforders
- IMM
- Immediate or Cancel Order
- Implementation Shortfall
- Implied Rate
- Implied Repo Rate
- Impulse Wave
- In and Out
- In Street Name
- Index Futures
- Index Option
- Indication of Interest
- Indicative Match Price
- Indicative Quote
- Indirect Quote
- Inflation Swap
- Inflation Trade
- Inside Days
- Instinet
- Intercommodityspread
- Intercontinentalexchange
- Interest Rate Call Option
- International Currency Markets
- International Petroleum Exchange
- Internationalsecurityexchange
- Intraday
- Intraday Momentum Index (IMI)
- Intradayintensityindex
- Intramarketspread
- Inverse Transaction
- Inverseheadandshoulders
- Ironbutterfly
- ISDA
- ISDA Master Agreement
- Islandreversal
- Itayose
- IV
- Jesse L Livermore
- Jobber
- Kickerpattern
- KLSE
- Knock Inoption
- Knock Outoption
- Know Sure Thing (KST)
- Koreastockexchange
- Ladderoption
- LEAPS
- Lease Rate
- Leg
- Leg Out
- Legging In
- Letyourprofitrun
- Liars Poker
- LIBOR in Arrears Swap
- LIFFE
- Limit Move
- Limitdown
- Limited Discretionary Account
- Limited Trading Authorization
- Limitonopenorder
- Limitorderbook
- Limitup
- Linechart
- Liquidating Market
- Liquidationlevel
- Liquidmarket
- Local Volatility
- Lock in Profits
- Londonmetalexchange
- Long
- Long (or Long Position)
- Long Date Forward
- Long Leg
- Long on the Basis
- Long Put
- Longevity Derivatives
- Longhedge
- Longjellyroll
- Longmarketvalue
- Longstraddle
- Longsynthetic
- Lookbackoption
- Low Exercise Price Option (LEPO)
- Low Volume Pullback
- LSE
- Macrohedge
- Managed Forex Accounts
- Manipulation
- Margin
- Margin Debt
- Market Close
- Marketisup
- Marketjitters
- Marketversusquote
- Marlborofriday
- Marriedput
- Martingalesystem
- Marubozo
- Master Swap Agreement
- Matchedbook
- Maxpain
- Mcclellansummation
- Mcginley Dynamic
- Meander Line
- Melt Up
- Mexicanstockexchange
- Micro Account
- Milanstockexchange
- Momentum
- Money Flow
- Multi-Leg Options Order
- Multiple Tops
- Muriel Siebert
- Nakedcall
- Nakedoption
- Nakedposition
- Nakedput
- Nakedshorting
- NASD
- Nasdaq100 Premarket Indicator
- National Market System (NMS)
- National Stock Exchange
- Natural Gas Storage Indicator EIA Report
- NBBO
- NCDEX
- NDF
- Negativebutterfly
- Negotiated Dealing System
- Negotiated Market
- Net Exposure
- Net Order Imbalance Indicator (NOII)
- Net Payoff
- Netchange
- Netoptionpremium
- Netshort
- Netvolume
- Neutral
- News Trader
- NEX
- NMS
- No Dealing Desk
- Nobspread
- Non Marginable Securities
- Non-Commercial Trader
- Non-Deliverable Swap
- Nonequityoption
- Not-Held Order
- Notionalprincipalamount
- NSCC
- NYBOT
- NYFE
- NYMEX
- Oandne
- OCO
- Octobereffect
- Oddlottheory
- Offer
- Onbalancevolume
- One Sidedmarket
- Onetouchoption
- Open
- Open Position
- Open Position Ratio
- Open Trade Equity
- Opening Cross
- Opening Imbalance Only Order OIO
- Opening Range
- Openingbell
- Openingprice
- Openingtransaction
- OPRA
- Optionchain
- Optioncycle
- Optionpricingtheory
- Options on Futures
- Optionseries
- Order
- Order Imbalance
- Order Protection Rule
- Orderdriven
- Orderingrules
- Ordersplitting
- Oscillator
- Oslobors
- OTC
- OTC Pink
- OTCBB
- OTCEI
- Otcoptions
- OTCQB
- OTCQX
- Out Trade
- Outperformanceoption
- Outright Forward
- Outsidereversal
- Over Selling
- Overbought
- Overextension
- Overhedging
- Overnight Position
- Overnighttrading
- Oversold Bounce
- Pacificexchange
- Pain Trade
- Pairoff
- Pairstrade
- Paper Trade
- Pattern
- Pattern Day Trader
- Payment for Order Flow (PFOF)
- Pennant
- Perfecthedge
- PHLX
- Piercing Pattern
- Piker
- Pinningthestrike
- Pinrisk
- Pit
- Pivotpoint
- Plain Vanilla Swap
- Plainvanilla
- Play
- Political Futures
- Porkbellies
- Portfolio Margin
- Position
- Position Limit
- Positiontrader
- Positivebutterfly
- Post Trade Processing
- Pre-Settlement Risk
- Prearranged Trading
- Premarket
- Previousclose
- Price Action
- Price Change
- Price Channel
- Pricebyvolume
- Priceimprovement
- Pricerateofchange
- Priceswapderivative
- Primary Instrument
- Primebrokerage
- Primed
- Principalorders
- Prop Shop
- Proprietary Trading
- Protectivestop
- Pullback
- Punter
- Purchase and Sale Statement
- Put
- Put Calendar
- Put Swaption
- Putcallparity
- Putratiobackspread
- Putwarrant
- Pyramiding
- Quadruplewitching
- Qualifying Transaction
- Quantooption
- Quantoswap
- Quote
- Quote Stuffing
- Quotedriven
- Rainbowoption
- Rally
- Range Forward Contract
- Rangeaccrual
- Rangeboundtrading
- Ratio Call Write
- Real Time
- Real Time Quote
- Real Timetradereporting
- Rebate Option
- Rebatebarrieroption
- Rebound
- Red
- Reference Entity
- Regionalstockexchange
- Regularwaytrades
- Regulation FD
- Regulation NMS
- Regulation SHO
- Regulation T
- Rehypothecation
- Relative Vigor Index
- Relativestrength
- Relief Rally
- Relisted
- Reloadoption
- Resistance
- Restricted Market
- Retail Foreign Exchange Dealer Rfed
- Retracement
- RIC
- Ring Trading
- Rising Three Methods
- Risk on Risk Off
- Risk-Neutral Probabilities
- Riskarbitrage
- Riskreversal
- Rolling Hedge
- Rolling Option
- Rollingsettlement
- Rollover Rate
- Round Triptrades
- Roundingbottom
- RTTC
- Rule 144
- Rule 144A
- Santaclauseffect
- Saucer
- Scale In
- Scalpers
- SEC Rule 10b-18
- SEC Rule 10b5-1
- SEK
- Sell
- Sell in May and Go Away
- Sell to Close
- Sell to Open
- Serial Option
- Settlement Period
- Settlement Price
- Setup Price
- Share Turnover
- Shooting Star
- Short
- Short (or Short Position)
- Short Call
- Short Hedge
- Short Leg
- Short Line Candle
- Short Put
- Short the Basis
- Shortcovering
- Shortexempt
- Shortinterestratio
- Shortinteresttheory
- Shortsalerule
- Shortstraddle
- Sideways Market
- Sidewaystrend
- Singapore Exchange
- Single Stock Futures
- SKEW Index
- Slow Market
- SMA
- Smalltrader
- Social Sentiment Indicator
- SOES Bandits
- Softcommodity
- Spark Spread
- Special Memorandum Account (SMA)
- Speculator
- Speed Resistance Lines
- Spike
- Spoofy
- Spot Date
- Spot Exchange Rate
- Spot Next
- Spotmarket
- Spottrade
- Spread Indicator
- Spreadbetting
- Spreadoption
- Square Position
- Squawkbox
- Squeeze
- Stalled Pattern
- Standard Lot
- Stepouttrading
- Stick Sandwich
- Stochasticoscillator
- Stochrsi
- Stock Loan Fee
- Stock Loan Rebate
- Stock Replacement Strategy
- Stockbroker
- Stockholmstockexchange
- Stockquote
- Stocksymbol
- Stophunting
- Stoppedout
- Straightroller
- Strap
- Stub Quote
- Stuttgartstockexchange
- Sub Pennying
- Sugar 11
- Sunshinetrade
- Superbowlindicator
- Supplemental Liquidity Provider
- Support
- Support Test
- Swap
- Swap Dealer
- Swap Execution Facility (SEF)
- Swaprate
- Swaption
- Sweetcrude
- Swing Option
- Swinglow
- Switch
- Symmetricaltriangle
- Synthetic
- Synthetic Call
- Synthetic Forward Contract
- Syntheticdividend
- Syntheticfuturescontract
- TAC
- Tactical Trading
- Take Profitorder
- Takeabath
- Takeaflier
- Tape Reading
- Technical Analysis of Stocks and Trends
- Technical Analyst
- Technical Correction
- Technicalindicator
- Thinmarket
- Three Black Crows
- Three Outside Updown
- Three White Soldiers
- Tick
- Tick Size
- Tickertape
- Tickindex
- Tie
- Tight Market
- Time and Sales
- TMX Group
- Todayslow
- Tokyo
- Tokyo Commodity Exchange
- Tomorrownext
- Tplus1
- Trade
- Trade Signal
- Trade Trigger
- Tradehill Exchange
- Trader
- Tradesanction
- Tradevolumeindex
- Trading Authorization
- Trading Floor
- Trading Margin Excess
- Trading Platform
- Trading Psychology
- Trading Strategy
- Tradingaccount
- Tradingahead
- Tradingbelowcash
- Tradingchannel
- Tradingcurb
- Tradingdesk
- Tradingrange
- Tradingsession
- Trailing
- Treasury Lock
- Trending Market
- Tri Star
- Triangle
- Triangular Arbitrage
- Triple Witching
- Triplebottom
- TRIX
- TRS
- Tsxventureexchange
- Turkmenistan Manat TMT
- Turtle
- Tweezer
- Twowayquote
- Unchanged
- Uncovered Option
- Underlying
- Underlying Security
- Unlimitedrisk
- Unlistedtradingprivileges
- Unwind
- Up and Inoption
- Upside Tasuki Gap
- Upsidedownside Gap Three Methods
- Uptick
- Uptickrule
- Upvolume
- USDX
- Vanilla Strategy
- Vanillaoption
- Variable Prepaid Forward Contracts
- Variance Swap
- Vega Neutral
- Vixoption
- Volatility Arbitrage
- Volatility Ratio
- Volume
- Volume Analysis
- Volumeoftrade
- Vortex Indicator (VI)
- Vptindicator
- VWAP
- VWAP Cross
- VXN
- Wallofworry
- Warsaw Stock Exchange
- Wash
- Weakhands
- Weatherderivative
- Weatherfuture
- Wedge
- Weekendeffect
- Weeklychart
- Whipsaw
- White Candlestick
- WI
- Widebasis
- Widow Maker
- Wildcardoption
- Witching Hour
- Wolfewave
- Writing an Option
- WTI
- XD
- Xetra
- Yieldbasedoption
- Zero Cost Strategy
- Zero Coupon Inflation Swap
- Zero Coupon Swap
- Zerocostcollar
- Zig Zag Indicator
- Zone of Resistance
- Zone of Support
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