Understanding trading terminologies that could bring you closer to being on a pro level.
Free float helps you select the best stocks to trade based on the market conditions and your risk profile. Learn more now about Free Float with AvaTrade.
The petrodollar has assisted the USD in dominating the global economy. Learn more with AvaTrade about the petrodollar system and its impact on the markets.
HODLing is a long-term investment strategy in the financial markets. Learn more about how to HODL and which assets to HODL. Access AvaTrade now.
Gamma squeezes have been a more common occurrence in recent months. They present lucrative opportunities for modern investors. Learn more today!
Hedging is an effective strategy to reduce and control investment risks. Visit the AvaTrade education centre to learn more about hedging today!
Volatility is one of the key aspects in financial markets ⭐ Learn about types of volatility, Different approaches to calculation & more.
Learn about carry trading. ⭐ Utilize this powerful trading strategy to take advantage of interest rate differential when trading Forex.
How Liquidity Affects Forex Trading Strategy? ⭐ What are Liquid and Illiquid Assets? ⭐ Opportunity to Boost your Trades...
Different types of arbitrage in financial markets ⭐ How to use it for profit? ⭐ Currency, statistical & triangular arbitrage explained.
Slippage is a major trouble for most forex traders ⭐ Find out why does it happen. How to minimize its effects? ⭐ How to avoid it?
Learn about currency pegging (fixed exchange rate) ⭐ Why countries do it? ⭐ How it creates arbitrage opportunities in Forex trading?
In trading, it refers to the drop in a trader's account, while in banking it refers to how much credit a borrower is accessing.
Are you wondering if contango is bullish or bearish? ⭐ Contango is assumed when the forward curve is rising relative to the spot price.
Learn the meaning & uses of currency swaps in markets. ⭐ Learn the ability to pinpoint opportunities in forex trading. ⭐ Trader Examples.
Market cycles dictate the trend direction in financial markets ⭐ Find out what drives the markets & how you can use it in your strategy.
DeFi is a blockchain-based form of finance that does not rely on financial intermediaries to offer traditional financial instruments.
Learn the different types of assets price correlation (positive / negative / uncorrelated). ⭐ Learn correlation-based trading strategies.
The various Greek letters are used in the options market to describe parameters of risk when taking an options position. ⭐ Want to know more?
Strike prices are used in derivatives (mainly options) trading. ⭐ Derivatives are financial products whose value is based (derived) on the ...
Scalping is a day trading strategy that involves opening and closing trades within a short period of time. ⭐ Read our complete guide.
OTM describe an option contract that only contains extrinsic value. ⭐ These options will have a delta of less than 50.0.
ITM indicates that an option has value in a strike price that is favorable in comparison to the prevailing market price of the underlying asset.
In finance, intrinsic value of an asset usually refers to a value calculated value of all expected future cash. ⭐ Read more.
Call option means that the strike price is at least $10 less than the underlying asset, or $10 higher for a put option. ⭐ Read more.
ATM is s used to describe the relationship between an option's strike price and the underlying security's price. ⭐ Read more.
Dividends are a distribution of earnings or profits to shareholders in one of many possible forms. Learn how they affect share prices from our article!
A block trade is the purchase or sale of a large number of securities at an arranged price between two parties. Join Avatrade today!
Treynor ratio, also knows as the reward-to-volatility ratio, compares the appeal of different portfolios on a risk-adjusted basis. Learn how to use it now!
The Sharpe ratio helps investors to assess the performance of a portfolio by taking into account the risks absorbed by the investor. Learn how to use it here!
A meme stock refers to shares of a company that has viral online and garnered massive attention from retail investors. Learn more about them here!
A gearing ratio is a financial ratio that measures a company's financial leverage or risk level and is used in investment risk assessment. Learn more here!
Learn about the different types of price weighting ⭐ Gain an insight into how different cultures measure success and importance.
Stock market indexes provides a glimpse into a country’s economy by looking at how its major corporations are faring ➤ For beginners.
We pay a premium to keep a position open overnight. ⭐ But what happens when the formula involves a negative exchange rate?
Forex trading or overall investing activity requires constant learning and practice. Sometimes, understanding forex and general trading terminologies can seem confusing and overwhelming, but you should not feel intimidated. It is important to understand all the relevant key terms, as this will only help you to become a better trader. It can help you to gain further knowledge from more professional sites as well as participate in interesting trader-centric forums.
Reading, learning, viewing and using forex terms continually will make you more comfortable with trading lingo over time. There are basic and advanced forex glossaries. Basic terminologies will help you get acquainted in the market, whereas more advanced terminologies can even help you to understand sophisticated strategies. To set you off, here are some of the basic terms you should understand:
Below you can see the list of articles about the terms that require more than a couple of lines to explain. Read On!