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Trading Glossary
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ABC Consumer Comfort Index for the United States is released weekly by ABC News and Washington Post. It is used as a measure of consumer sentiment and is considered as an early indicator of an economic recession. This index is relatively new and is often overshadowed by the Consumer Sentiment... More >>
Alphabet Soup > Trading Glossary
Daily Cut-Off
A specific point in time arranged by a forex trader deemed as the end of the current trading day and the beginning of a new trading day. This is done to define trading dates and settlement days.
Daily Trading Limit
The maximum amount a trading position can be long or short ... More >>
Alphabet Soup > Trading Glossary
Hard Currency
An industrialized nation’s currency that is generally recognized around the world as a form of payment for goods and services.
Hard Loan
Money borrowed from a foreign source which must be paid back in a hard currency
Hyperinflation
An inflationary economic envi... More >>
Alphabet Soup > Trading Glossary
Online Foreign Currency Exchange
An online foreign currency exchange is a forex broker that allows delivery of currencies traded.
Overnight Trading
An investor arranges to buy or sell a currency between the hours of 9:00 p.m. and 8:00 a.m. local time in another time zone where the forex ... More >>
Alphabet Soup > Trading Glossary
TBill– Treasury bill – is a marketable security like a bond which is backed and issued by the US Government and has a maturity of up to one year. TBills are in denominations of $1000.
Transaction Risk
The risk which is linked to the possibility that the time delay between agreei... More >>
Alphabet Soup > Trading Glossary
In-The-Money
An adjective used to describe an option that has intrinsic value.
Intrinsic value
The value of the in-the-money part of the price of an option
Iron butterfly
An option strategy with limited risk and limited profit potential that involves both a long (or short) str... More >>
Alphabet Soup > Trading Glossary
American-style option
An option where the owner can exercise it on any day before expiration
At-The-Money
An option with a strike price that is the same as the current market price of the underlying stock
Bear spread (call)
The writing of a call option with a low strike price ... More >>
Alphabet Soup > Trading Glossary
Hedge
An investment which has the purpose of minimizing the impact of adverse movements in interest rates or prices
Interest
Paid compensation for the use of money expressed as an annual percentage rate
Issue date
The date on which a security is issued
Issuer
A state, ... More >>
Alphabet Soup > Trading Glossary
Accrued interest
Interest considered to have been earned on a bond but is not yet paid to an investor
Ad valorem tax
A tax based on the value of real property
Agency bond
A bond issued by a Government Sponsored Enterprise
Allotment
The distribution of bonds to members ... More >>
Alphabet Soup > Trading Glossary
Bear Market
A market distinguished by falling prices.
Bid
The price level at which a CFD is sold.
Bull Market
A market dominated by rising prices.
CAC
The top 40 companies listed in the Paris Stock Exchange weighted by market capitalization.
Commission
Th... More >>
Alphabet Soup > Trading Glossary
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