Dictionary of trader and investor. 100+ terms

Financialtrader's dictionary contains basic exchange terms for beginners. Most relevant financial “slang”.

Market On Close (MOC) order is an order, which can be sent during the day during the trading session, but will be executed in the last trade at close. Throughout the trading day, exchanges accumulate MOC orders and bring them together in the last trade (print) trading day.

After-hours trading – execution of transactions with securities after the close of the exchange session. Previously, this type of trade using special computer systems was used by, mainly, institutional traders. Today, many online Brokers offer access to “last day trading” a wide range of investors.

Ask (asked price) – Selling price – seller's asking price, ie. the lowest price, by which he is ready to sell.

At-the-opening order – order to the broker to conclude a deal at the best price at the opening of the exchange (at the beginning of the morning session).

ATS (Alternative Trading Systems) – alternative trading systems are the fastest growing e-commerce medium. They provide their members-subscribers with access to information and trading on various platforms through special software.. Compared to online brokers, PBX operation is faster and more reliable in that, regarding the processing and execution of orders. In the SEC rules, the term ATS is defined as “any organization, association, face, group of persons or system, That:

Backtesting – the process of optimizing a trading strategy based on the use of historical data, and then checking it for the adequacy of the results obtained through the use of modern data.

Bid/Bid Into – purchase price – price, according to which the market maker purchases financial instruments from ordinary investors. Bid Into is used to buy shares or open a long position through SelectNet or ECN.

Block Trade – deal with such a volume of securities, which in the ordinary market of the auction type cannot be executed at a reasonable time and at a reasonable price. Usually volume “blocking transaction” exceeds 10.000 Shares, or its amount is more $200.000.

Buy Stop Order – order to buy quoted on the exchange (listed) security at a price, exceeding the current bid price. The order is being executed, when the market price reaches or surpasses the established benchmark (stop price). When it happens, buy stop order turns into a market order (market order) and executed at the best available price.

Cancel order – order cancellation order, which was introduced, but not yet executed (= to make void, to kill).

Capping – “clogging” – active sales of a certain security in order to keep its price low or to depreciate its rate. Doing so violates the NASD Fair Trading Practices Rules. (Rules of Fair Practice).

Churning – “whipping butter” – dishonest behavior of brokers, associated with an increase in their commissions due to the frequent opening and closing of positions on client accounts. Violates the NASD Fair Trading Practices Rules (Rules of Fair Practice).

Contrarian – investor, whose behavior is always contrary to the mood of the majority of market participants. In other words, if most investors buy, “dissenting” the investor sells and vice versa. “Dissenting” investor thinks, what, when the market goes up, most of the participants are already completely or almost completely “purchased” and have no more funds to make new purchases. In this way, if the market has not yet reached its peak, it will do it shortly. And vice versa, when other investors are sure, that the market begins to move down and hastily close their positions, “dissenting” the investor is actively buying, counting, that there are no sellers left on the market at all or almost at all, and there is nothing left for the market, how to start moving up.

Cornering the Market – “corner” – illegal practice, consisting in the purchase of a significant amount of securities in order to be able to manipulate their prices.

Day Order – order to buy or sell a security, which will automatically expire, if it was not executed by the end of the trading day, during which he was posted.

Datafeed – Information flow (for example, market quotes and news).

Data vendors – “information providers” – specialized companies, providing a variety of information for analysis and investment decisions.

Day trading – “intraday trading” – active trading strategy, consisting in opening and closing positions within one trading day and making a profit on small short-term price changes. NASD rules define day trading as “regularly placing orders to buy and sell the same securities during the trading day”.

Dealer Flip – “dealer jump” – phenomenon, when the market maker “jumps” from the bid price to offer or from offer to bid for a promotion, by which he “makes the market”.

DAYS (do not increase) – “do not increase” – the client's instruction to the broker not to increase the number of securities, which must be bought or sold in the event of a stock split announcement (split) or payment of dividends in the form of shares (stock dividend).

DNR (do not reduce) – “do not decrease” – the client's instruction to the broker not to reduce the limit price in buy-limit and sell-stop orders as of the registration date (record date) shareholders, ie. in case of loss of the right to receive current dividends.

Down Off – situation, at which the market maker, highest bidder, no longer wants to buy securities on it. The market maker adjusts its bid price downward to that level, where he can resume purchases. Sign of bearish sentiment.

Down to Ask – situation, in which the market maker lowers his ask / offer price to the level of the current offer price in the hope of selling the maximum possible number of shares before that moment, when the price falls below the acceptable level. Sign of bearish sentiment.

Drops Bid – situation, at which the market maker, highest bidder, suddenly adjusts it downward, not wanting to pay such a high price for shares anymore.

ECN (Electronic Communications Network) – electronic trading systems, intended information of buyers and sellers of securities and automatic execution of client orders. SEC rules define ECN as any electronic system, which distributes among a wide range of users information about orders entered into it by exchange specialists or market makers of the OTC market, and allows them to be automatically executed in whole or in part.

Fill – order execution (partial fill – partial execution).

5-minute rule – “the rule 5 minutes” – time limit, valid for users of the SOES system (Small Order Execution System). At the time of buying 1000 XYZ shares via SOES client, before he is allowed to use this system again to buy new shares of XYZ, have to wait 5 minutes. A similar requirement applies to a sale transaction.. However, if a customer buys 600 XYZ shares, during the first 5 he can buy more minutes 400 Shares, to bring the position size to 1000 Shares.

Floor Tradertrader in the exchange hall, being a member of it and directly participating in the auction at its own expense.

Free-riding – “riding a hare” –
1) the practice of quickly buying and selling securities by a broker's client without actually depositing money (at the time of buying) or submitting papers (on sale) in violation of Rule T of the Board of Governors FED USA;

2) SEC prohibited practice, in which the organizers of the issue “hold back” part of the new issue in the hope of obtaining an increased profit as a result of the sale of these shares at a price, exceeding the public offer price.

GTC (good-till-canceled) order – “valid until canceled” – client order to the broker to buy or sell securities, valid until notice of cancellation. Until the moment of its execution, the order can be changed or canceled at any time.. Also called “open order” (open order).

He Drops – this term describes the situation, at which the market maker “drops” your bid price, which was the best, to a lower level after order execution in SOES.

Held – term, signifying suspension of trading in a security (market makers are not allowed to display their quotes on it).

He Lifts – term, used in situation, when the market maker, after the execution of the order in SOES, raises its current offer price, which ceases to be the lowest.

He Stays – the term is used in a situation, when the market maker has executed an order in SOES on the bid or offer side, its current bid or offer price continues to be the best, and he continues to buy or sell on them.

High Bid – the term is used in a situation, when a market maker at a certain point in time wants to make a purchase at a higher price, than other market makers. Sign of bullish sentiment.

Hit the Bid – the term defines the situation, when the trader sold shares at the current bid price.

Index investing (indexing) – index-linked investing – investment strategy, hypothesized, that in the long run the investor, even the most experienced, unable to outplay the market, that is, the profitability of his portfolio in the long term will always be inferior to the results, which shows the market as a whole (dynamics of the index). Supporters of this investment strategy form their portfolio of securities, which make up any index, or buy shares of index mutual funds, whose portfolio completely copies the composition of an index (most often S&P 500).

Inside Market – at a particular moment in time, the interval between the best quoted prices, highest bid and lowest offer.

In the red – “in red” – expression, used to denote unprofitable transactions (previously, losses were recorded in red ink in books). Back to in the black – “in black” – reflection of break-even operations.

  Routes (Route)

Lastsale Reporting – last sales reporting – electronic input by NASD members on Nasdaq Stock Market prices and number of shares per trade. The transaction must be reported to the Nasdaq within 90 seconds from the moment of its commission.

Lift Offer – term, used for the situation, when the market maker increases his offer price, not wanting to sell at the previous price. Usually seen as a sign of bullish sentiment.

Limit Order – limit order – an order to a broker to buy or sell securities at an agreed or better price. In the case of a purchase, the order will never be executed at a price higher than the specified one, and in case of sale – at a price below the specified. If a limit order is entered into the SOES system, and not a single market maker quotes its price at the level, defined in the limit order, the order is automatically canceled, and the report on its execution looks like “No SOES Market Maker Available” (“SOES has no market maker”).

Loss taking – fixation of losses – closing a position when a certain level of losses is reached.

Low Offer – the term is used in a situation, at which the market maker lowers his offer price and currently quotes it at the lowest level among all market makers. Sign of bearish sentiment.

Markdown – difference between the highest current bid price, offered by dealers, and a lower price, which the dealer pays to the customer. Back markup.

Market Order – market order – an order to a broker to buy or sell securities at the best price available on the market at the time the order is received.

Market Timing – “market tracking” – investment strategy, consisting in an attempt to correctly choose the time of buying and selling securities based on the analysis of market and general economic information.

Markup – difference between the lowest current offer price, offered by dealers, and a higher price, charged from the client. Back to markdown.

Matching orders – “matching orders” – simultaneously entered identical or almost identical orders to buy and sell the same securities to create the appearance of trading activity. This practice is in violation of the anti-fraudulent provisions of the Stock Exchange Act. 1934.

Neural net – neural network – computer program, AI-based and self-learning. The effectiveness of using such computer programs in practice, in particular for predicting market movements, not yet proven.

Offer Out – price, at which the market maker sells securities, and ordinary investors buy. When you offer out, you take on the role of a market maker, offering to sell their securities at the offer price on ECN or Selectnet. In most cases, this strategy is used to close long positions., but can also be used to open short.

Off the Offer – situation, at which the market maker, lowest offer price, picks her up, not wanting to sell securities at such a low price anymore.

Open Order – open order – order to the broker to buy or sell securities at a price, not coinciding with the current market, which remains in effect until the moment of its execution or cancellation.

Override – “overlap” – term used, when a trader is going to offer his shares at a price higher than the current offer price, or offers a purchase price, which is below the current bid price.

Principal Orders – “main orders” – orders of brokers-dealers when they carry out trading operations at their own expense.

Profit-taking – profit fixation – closing positions in securities, the cost of which has grown to a certain planned level, to realize profit. Positions are closed regardless of the assumptions regarding the further price movement.

Position trading – position trading – investment strategy, within which positions are not closed for a sufficiently long time – to 6-12 months or more. Often contrasted with day trading, frequent opening and closing of positions during one trading day.

Program trading – program trading – the use of special computer programs by arbitrageurs and institutional investors to carry out purchase and sale transactions while managing a sufficiently large portfolio of securities. Such programs allow you to monitor several markets and securities at once and give signals to buy or sell, when there are favorable opportunities for profit in the market or conditions are met, laid as a guideline for replenishing or closing a position. This type of trade is often accused of being, that it leads to increased instability (volatility) on the market, therefore, there are special rules for the disclosure of information about such transactions.

Pump-and-dump – “pumping up the market” – the practice of unscrupulous traders, which artificially inflate interest in securities, which they bought in advance, so, to then sell them to poorly informed and inexperienced investors at a significantly higher price.

Real Time trade reporting – reporting on transactions in real time – requirement, imposed on market makers (and in some cases also to non-market makers), provide reports on transactions immediately after their completion. For transactions with shares, traded on the Nasdaq, reporting must be received within 90 seconds after committing them.

Rebound – rollback or restore – change in the direction of movement of market prices after, how the long-term trend of their rise or fall has led to, that market participants consider the prevailing price levels too high or too low.

Refreshes – basically the same, что He stays – used in the situation, when the market maker has executed the order at the bid or offer price set by him and continues to buy and sell securities at prices quoted at the same level.

Screening – the process of searching and selecting securities with given investment and financial characteristics in any database. The essence of the method is the sequential use of filters (screens) for sampling, meeting the required criteria.

Slippage – difference between the estimated transaction price and the price, according to which it was actually committed.

Spread – difference between the current bid and offer prices.

Stop order – stop order – client order, which becomes the market when the market price reaches a certain level (stop prices). A sell stop order is placed below the current market price (usually to limit losses or protect unrealized profits). A buy stop order is placed above the current market price (usually to protect short positions). Stop orders are not always executed at the stop price.

For exchange-traded securities, stop orders become market ones, when a security is trading at or near the specified price level. Stop- sell orders for OTC securities become market orders, when their bid price is at or below the specified level. Buy stop orders for OTC securities become market ones, when they are offered at a set price or slightly higher. For papers, traded on OTCBB, stop orders are not applied.

Stop-limit order – stop limit order – client order, which becomes a limit order after the market price reaches a specified level (stop prices). A stop-limit sell order is placed below the current market price (usually to limit losses or protect unrealized profits). A stop-limit buy order is placed above the current market price (usually to protect short positions).

For exchange-traded securities, stop-limit orders become limit orders, when a security is trading at or near the stop price, and will be executed at the limit price or better price when the market price reaches this level. Stop-limit sell orders for OTC securities become limit orders, when their bid price is at or below the specified price level. Stop-limit buy orders for OTC securities become limit orders, when securities are offered at a specified price or higher. Stop-limit orders for securities, traded on OTCBB, not used.

Stop-loss order – order “stop losses” – a client's order to the broker to sell securities at the best price after the market price has dropped to a certain level in order to fix losses.

Tick – minimum change in the price of a security on the market. In the recent past, depending on the type and value of the security, “step” prices were 1/16, 1/32, 1/64 dollars, etc. Today, the American market has completely switched to decimal prices. (decimalization). When transmitting information about price movement, the terms uptick are often used (one tick up) и downtick (one tick down).

Tickerticker – telegraph (electronic) apparatus (or system), promptly issuing current financial information on paper tape. First used in the USA in 1867. Currently under “ticker” understood information, appearing on the screen or monitor, including in the form of a creeping line with stock quotes and trading volumes, as well as regularly updated news. “Ticker” also called the symbolic designation of traded securities.

Timed out – “time is over” – after that, how did you place an order in SOES or ECN, your order is only valid for a certain period of time. Timed Out means, that time is up, and the order will be automatically canceled. Time limits for validity vary depending on the type of order.

Too Late – “too late” – this term is used in the SOES system, when a trader placed an order to buy or sell a security, and then decided to cancel it. After making an attempt to cancel the order, the trader receives a message “too late”, which means, that it is no longer possible to cancel the order, and it will soon be fulfilled.

Trading halt – temporary suspension of trading on the exchange. May occur due to an emergency message entering the market or an imbalance in the number of buy and sell orders.

  We continue the conversation.

Trading system – trading system – in investing means a set of rules, which the investor disciplinedly adheres to when opening long and / or short positions. Such a set “principles of trade” easy to program, testing and optimization. In the computer industry, the term is used to refer to a collection of networks, computers and software for electronic transactions with securities.

Twosided market – bilateral market – commitment, imposed by the NASD on market makers to set firm bid and ask quotes for each security, on which they “make the market”.

Up to Bid – the term is used in a situation, when the market maker raises his current bid price to the highest level. This is a bullish sign, since the market maker will now pay the highest price among all market makers when buying shares.

U R Out – This message appears on the computer screen after successful cancellation of the entered order.. After the appearance of such an inscription, the trader, if desired, can enter the order again..

Violation Short Sale – forbidden short sale – a trader can receive such a message in the order entry system window. It appears in a situation, when a trader tried to sell a stock at a price “one tick down”, what is against NASD rules. The order is automatically canceled immediately.

 

Share – (Englishshare) security, company-specific, which allows the owner of this share to receive dividends.

Graphical analysis - a method for analyzing price movements and forecasting using graphical figures on a chart, such as "triangle", "pennant", "Flag" etc.

Technical analysis - a way of analyzing price movements and forecasting using technical indicators.

fundamental analysis - a way of analyzing price movements and forecasting by considering the macroeconomic indicators of countries, the state of their economies.

Ask – (Englishask - ask for a price) order book price, by which a trader can open a buy trade.

Algo trader - trader, using algorithmic and robotic trading systems when working.

Algorithmic trading - method of working in financial markets using algorithms - automatic robotic programs, who are able to fully or partially make trading decisions.

 

B

Rich – (Englishbuy) buy deal.

By-limit – (Englishbuy-limit) pending buy order, below market prices.

Buy-stop – (Englishbuy-stop) pending buy order, above market.

Bar – (Englishbar) vertical element of a price chart, reflecting 4 prices (discoveries, maximum, minimum, closing) for a certain time period (minute, time, day, etc.).

Schedule type "bars".

Cm. also: OHLC prices. Compare: Candle.

We – (Englishbid - offer a price) order book price, by which a trader can open a sell trade.

Exchange - centralized financial market, where securities are traded (stock), bonds, derivatives and other financial instruments.

Broker – (Englishbroker - intermediary) institutional and regulated intermediary in the trading of financial instruments.

Bull – (Englishbull) market participant, pending price increase. Bull Market - Growing Market. Cm. also: Bear.

Backtest – (Englishbacktest) testing trading systems on historical data.

 

IN

Currency – (Englishcurrency) monetary unit of the country.

Base currency - in a currency pair, the base currency is the first, ie. is in the numerator.

Quote currency - in a currency pair, the quotation currency is the second, ie. stands in the denominator.

Currency pair - financial instrument, in which the value of one currency is expressed in units of the second.

Volatility – (Englishvolatility, from Latinto fly - to fly),  rate of price movement. Usually, measured visually or using indicators, e.g. Average True Range (ATR), Stardard Deviation.

Markets are distinguished as volatile and non-volatile. Respectively, volatile markets are characterized by high speed of price movements. Non-volatile markets are calm.

Low volatility and high volatility market.

High frequency trading – (Englishhigh frequency trading – HFT) type of trading, when trades can be opened and closed within fractions of a second. For HFT apply trading robots and algorithms, and companies, who do HFT, locate their offices as close as possible to the servers of brokers and dealers, so that the performance error is minimal.

 

G

The gap – (Englishgap) price gap, happening, usually, in the foreign exchange market and associated with the lack of trading on Saturday and Sunday or with the release of significant news. Examples of gaps on the daily chart and in the increase on the hourly.

Gaps on the daily USDJPY chart. Gaps after the weekend.
The gap from Friday to Monday. Schedule H1.

Gaps are more common in stock markets due to the evening close of trading and their resumption the next day.. The night between trades can bring news, which will affect the opening prices of trading tomorrow.

 

D

Deposit – (Englishdeposit) invoice amount, on which a trader conducts his trade in financial instruments.

Derivative – (Englishderivative) financial derivative, e.g. futures, forward or option.

Decentralized market - market, where the auction takes place in more than one place physically, and on different trading platforms.

Diversification - distribution of risks across markets, tools, strategies.

Dealer – (Englishdealer) market participant, acting as a counterparty in a transaction with clients. Among traders DC is often affectionately referred to as "kitchen".

Dealing center, DC - cm. Dealer.

Discretionary Analysis – (Englishdiscretionary) a way to analyze price movements using logic, without the use of rigid rules and technical indicators.

Daytrader – (Englishdaytrader) trader, who makes deals, usually, inside the day, not transferring them to the next trading session or day.

 

WITH

Mirror level – level of support, after breaking through which it becomes a resistance level, or vice versa.

 

AND

Investor – (Englishinvestor) market participant, long-term trader.

Index - indicator of the average value of financial instruments. So, for example, index S&P 500 includes 500 largest companies in America (thereby showing the strength or weakness of the American stock market), and the US dollar index is the average of the dollar against major currencies.

Technical indicator - mathematical formula, into which historical prices and / or volumes are substituted, lined, histograms, points, etc., located on the price chart. Technical indicators tell the trader the direction of the market, entry points, measure volatility, etc..

Read more: volume indicators(Volumes, Better Volume, VSA Trader), technical indicators(senior High School, EMA, Parabolic SAR, envelopes, ATR and others).

Costs - fees for trading in financial markets. These include commissions, spreads, swaps.

 

TO

Quantum – (Englishas to) this is what mathematicians are called in the trading world, programmers or physicists, who work for investment companies to develop trading robots or algorithms.

Carry trading – (Englishcarry-trading) type of long-term trade, in which profit is earned on the difference in interest rates of two countries, whose currencies are involved in the transaction.

Order book – (Englishorder book) all stop and limit orders to buy or sell an instrument, located at the dealer at a certain point in time.

Order book. Rapidly changing volume of orders for the next 5 Bid and Ask quotes.

Order glassglass of pricesmarket glassmarket depth - this is also called the order book. Eng. –JUDGMENT (depth of market), LOB (limit order book).

Cm. also: We, Ask.

Quantitative trading - method of trading in financial markets, when algorithmic strategies are used, high frequency strategies and arbitrage strategies.

Commission - the trader's fee to his broker for services.

Counterparty - the other party to the transaction.

Consolidation – (Englishconsolidation) another name for flat. Period, when the price does not show trend movements.

Correlation - the relationship of the movement of individual instruments.

Quotation - asset price.

Reverse quotation - this way of quotation, at which the US dollar (USD) stands in the denominator. Reverse quoted currency pairs include EURUSD, GBPUSD, AUDUSD, NZDUSD.

Direct quotation - this way of quotation, at which the US dollar (USD) is in the numerator. Direct quoted currency pairs include USDCAD, USDCHF, USDJPY et al.

Recovery factor– (Englishrecovery factor) expresses the relationship between the average annual return and the maximum drawdown.

Cross course - financial instrument, dollar-free (USD). However, trades with cross rates are still carried out with the participation of the US dollar..

 

L

Liquidity – (Englishliquidity) the volume of the traded asset currently available on the market.

Limit - see Pending Order.

Long – (Englishlong) Long trade, or a buy deal.

Lot - volume per trade, equal 100 000 units of the underlying instrument. For example, buying one lot of EUR / USD will be equal to buying 100 000 EUR. In digital terms, it is measured as 1.0 (100 000 base unit), 0.1 (10 000 base unit), 0.01 (1 000 base unit).

 

M

Major – (Englishmajor) actively traded currency pair with forward or reverse quotation.

Margin – (Englishmargin) security deposit of a trader to a trading account.

Margin call – (Englishmargin call) literally "a call from a broker with a request to the client to replenish the margin"; trading situation, in which the trader does not have enough funds on the balance sheet to maintain open positions.

Market maker – (Englishmarket-maker) major market player, obliged to provide liquidity and receiving commissions for their services. Market makers, usually, are the world's largest banks.

Bear – (Englishbear) market participant, pending price drop. Bear market - falling market. Cm. also: Bull.

Meta-order – (Englishmetaorder) very large order, belonging, usually, big players.

Mechanical trade - trading with strict technical rules. Most often, such systems use indicators and computer algorithms..

 

ABOUT

Volume - the total amount of the asset, traded per unit of time. Cm. also: volume indicators in technical indicator.

Bonds - debt security, issued by a government or a corporation. The most conservative instrument after bank deposit.

  o tom o sem..

Overnight – (Englishovernight) percentage of the transaction volume, held by broker, for transferring a position to the next day. This percentage depends on the interest rates of the countries, whose currencies are involved in the trader's deal.

Option — (Englishoption) tool, which gives its owner the right, but not a duty, buy or sell a financial instrument at an agreed rate within a certain period of time.

Warrant – (Englishorder - order) trader's order to open a position.

Pending order - an order to open or close a position at prices, far from current market.

market order - an order to open or close a position at the current, market prices.

Limit order - cm. Pending order.

Oscillator – (Englishoscillator, fromoscillate - hesitate) indicator, limited by levels 0% And 100%. Oscillators are called leading indicators because, that they often reach extreme values ​​before price reversals. Profitable oscillator signals are most likely in flat markets. However, trends do not leave the oscillators a chance for profitable signals., since the oscillator on the trend spends most of the time in the extreme zone.

Oscillators include the following indicators: Stochastic, Williams’ %R, RSI, Momentum and some others. Even MACD can refer to oscillators, although it does not formally have an upper and lower fluctuation limit.

Open interest – (EnglishOpen InterestHEY) also called"Amount of open positions". Open interest is the sum of open futures or options contracts, for which no settlement was made. In a word - open positions. OI is a popular indicator among traders. Information taken from the Chicago Mercantile Exchange - CME (Chicago Mercantile Exchange).

 

P

Pattern – (Englishpattern - model, sample, scheme) price model or model, formed by the indicator.

Pyramiding – (Englishpyramiding) gradual increase in the volume of a working profitable position.

trading platform - software for the trader, where you can analyze charts and make trading operations.

Credit leverage – (Englishleverage) leverage, broker funds, thanks to which a trader can open a position with volume, exceeding its margin.

Support - horizontal or oblique price level, holding the price and preventing it from falling further.

Briefcase - traded financial instruments with an individual trader / fund in a certain period of time.

Liquidity Provider – (Englishliquidity supplier) market participant, usually, market maker, providing liquidity to other trading participants. Liquidity deliveries are the placing of limit orders.

Consumer of liquidity – (Englishliquidity consumer) market participant, usually, trader, consuming liquidity fromBooks orders. Liquidity is consumed by market orders.

Order flow — (EnglishOrder flow) set of all transactions, which enter the order book and which affect pricing.

Price action –(EnglishPrice Action) verbatimprice behavior, method for analyzing charts of financial instruments without indicators, based on the search for trend continuation and reversal patterns, formed by one or more bars (candles). Notable Price Action Models: pin bar, inside bar, DBHLC / DBLHC, outside bar (absorption) etc. The method has similarities with Japanese candlestick analysis..

Drawdown –(Englishdrawdown) - loss, obtained during the time from reaching the historical peak of the yield curve to the historical minimum of the yield curve.

 

slippage – (Englishslippage) lack of quotes at specified price levels, related to the sparseness of the order book. Cm. also: Order book.

Prop trading – (Englishproprietary trading) type of activity in financial markets, when the company works with its capital (without attracting investor money), and also allows private traders to cooperate with them, selecting the best for the main state.

Profit factor – (Englishprofit-factor) ratio of total income to total loss.

Profit – (Englishprofit) profit, obtained in the financial markets as a result of a successful transaction or transactions.

Sentence - the willingness and ability of the participant to sell the instrument at a certain price.

 

R

Rally – (Englishrally) stable, strong and impulsive up or down trend.

Renko - the way the chart is displayed to filter out market noise.

Robot - see Advisor.

stock market orstocks and bods market – stock exchange (physical location, for example - Wall Street and the stock exchange NYSE), where the purchase transactions take place, sale or initial offering of securities and other instruments.

Market inefficiency - a certain characteristic of the market, on which there is an opportunity to earn. Usually, markets are efficient, due to this, finding market inefficiencies is the main task of any trader.

 

With

Candle - vertical element of the price chart, containing 4 prices for a certain time period - cm. See also OHLC Prices. The candle consists of a body, which is formed by the opening and closing prices, as well as shadows - top and bottom. The size of the body and shadows is constantly variable. Can be candles no shadows at all or with a very narrow body.

Trader's Glossary 
Japanese candle.

The candlestick chart looks like this. Candles are painted green on it, where the trading period ended with an increase. Red - with a fall. It is also possible to paint in white and black, respectively.

Kind of Japanese candles 
Candlestick chart. Japanese candles.

Compare with: bars.

Sell – (Englishsell) sale of a financial asset, sale deal.

Sell-limit – (Englishsell-limit) pending sell order, above market prices.

Sell-stop – (Englishsell-stop) pending sell order, below market prices.

Trading session - period of time within a trading day, when a particular financial center or region is active. Allocate 3 main sessions: Asia-Pacific, London (European) and New York (American).

Trading session schedule. Click-to-zoom.

Setap – (Englishsetup) price model, fit for a transaction.

Swap – (Englishswap) cm. Overnight.

trading system - a set of trading rules, according to which transactions are made on the market.

Scalper – (Englishscalper) active day trader, usingскальпинг as a trading approach.

scalping – (Englishscalping) type of short-term intraday trading in financial markets, characterized by a high frequency of transactions and their small size.

See “Forex Scalping - Pros and Cons. Infographics ".

Advisor – (Englishexpert advisor) trading robot, computerized trading algorithm, launched on the platform and performing all or individual trading actions for the trader. Expert Advisors create in programming languages (popular languages ​​plus MQL 4/5), as well as in visual constructors, for example, Visual JForex. Visual programming of a trading robot does not require programming skills from a trader.

Resistance - horizontal or oblique price level, holding the price and preventing it from growing further.

Speculation - a kind of noble activity in the financial markets, making a profit on the difference in the prices of financial assets.

Speculator - kind of a noble participant in financial markets, speculating.

Spread – (Englishspread) distance between Bid and Ask prices.

In front of the bar - the difference between high and low candles.

Demand - the participant's desire and ability to buy an instrument at a certain price.

Stop loss – (Englishstop-loss) pending order, fixing a trader's planned loss.

Statement – (Englishstatement) statistics of trading results of a trader or fund.

 

T

Timeframe – (Englishtimeframe) time period of price movement, reflected on the graphs as a single vertical element.

Take profit – (Englishtake profit) literally "take profit", pending order, fixing the trader's planned profit.

Trend - stable direction of price movement. Also calledtrend. The direction of trends is determined using trend indicators, for example: senior High School, EMA, MACD and others.

Ticker — (Englishticker) letter code (abbreviation) exchange or over-the-counter instrument. For instance: EUR (euros), BRN (Brent oil), AAPL (Apple), MSFT (Microsoft) and t. d.

Transaction – (Englishtransaction) transaction between two participants in financial markets.

Trader – (Englishtrader) literally "merchant", participant in financial markets, looking to make money on the difference in prices.

trailing stop – (Englishtrailing stop) stop loss level, which automatically follows the price movement at the distance specified by the trader in points.

trend - cm. Trend.

 

IN

Averaging - a way to manage positions, in which the volume of the position increases as the price moves sideways against the deal, ie. as the loss on the position increases. Averaging is one of the main causes of large losses and is not recommended for use. (Englishaveraging). There is also a well-known saying “Losers average losers” (losers average losing trades).

Financial participant - the so-called informed player, whose task is to invest, speculation and other professional activities, related to markets. These include hedge funds, broker-dealers, central banks, etc.

 

F

Flat – (Englishflat) literally "flat", market condition, in which there is no pronounced tendency.

Stock market – (Englishstock market, equity market) centralized exchange market, on which shares of companies of a certain country are traded. Notable stock exchanges: New York - NYSE, NASDAQ; London - LSE; Tokyo Stock Exchange etc.

Forward test -(Englishforward test) trading strategy test, simulating performance on "future" time frames. Usually, testing is divided into backtest and forward test. Backtest shows initial vehicle statistics, the forward is needed to confirm the trend (profitable or unprofitable) on the backtest.

 

X

Hedge fund – (Englishhedge-fund) financial market participant, the main goal of which is to make a profit on various trading platforms around the world for yourself and your clients.

 

C

OHLC prices - four prices, reflected on candles or bars. This: opening (open), maximum (high), minimum (low), closing (close). On a bullish bar (growth bar) the closing price is always higher than the opening price. On a bearish bar (drop bar) the closing price is always lower than the opening price.

Four Japanese candlestick OHLC prices.
Four OHLC prices on bar charts.
 

W

Short – (Englishshort) literally "short trade", sale deal.

 

E

Equity – (Englishequity) or "yield curve". Schedule, which shows the effectiveness of growth (or fall) the yield curve of a financial strategy or investment portfolio.

Issuer - company or corporation, which issues stocks or bonds on its own behalf.

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