Market terms Glossary

Simple definitions to international markets trading terminology.

  • Aggregate Demand

    The sum of government spending, personal consumption expenditures and business expenditures.

  • Asset

    A stock, commodity, currency, or index.

  • Asset Index

    A list of all underlying assets that traders are able to trade on.

  • At The Money

    When the option expiry price is the same as the buying price.

  • Big Figure

    This dealer phrase is a referring to the first few digits of an exchange rate. the digits rarely change in normal market changes, hence are omitted in dealer quotes, especially in times of high market activity. For example, a USD/Yen rate might be 107.60/107.65, but would be quoted without the first three digits as, “60/65”.

  • Candlestick Chart

    This chart type indicates an asset’s trading ranges for the day as well as the opening and closing price. If the close price is lower than the open price, you will see the rectangle is shaded or filled. If the open price is higher than the close price, you will notice the rectangle is not filled.

  • Commodities

    This is one of the four types of assets.  Commodities are goods like oil, gold, corn, and more.

  • Currencies

    This is one of the 4 types of assets.  Traders attempt to predict which of two currencies will perform better, and therefore will always find currencies quoted in pairs.  Examples: USD/GBP, EUR/JPY, etc.

  • Expiry Price

    The price of the underlying asset at the time of expiry according to the real-time market price. The expiry price determines whether the option has expired in-the-money or out-of-the-money.

  • Expiry Time

    The designated time and date at which an option expires.

  • Federal Reserve (Fed)

    The Central Bank of the United States.

  • In the Money

    A trader’s option is in-the-money when his prediction on the direction (regardless if it was above or below) was correct. Options expires in-the-money, and the trader receives the full payout even if the trader was correct by just a single pip.

  • Indices

    This is one of the 4 types of assets.  Indices are collections of stocks that can be traded together.  For example: NASDAQ, FTSE 100, CAC, and more.

  • Investment

    Investing of money in order to gain profitable returns.

  • Long Term

    The type of instrument that deals with long term trades.  These positions have expiry times of days, weeks, or months.

  • Margin

    Funds deposited as collateral to cover any potential losses from adverse movements in prices.

  • Out Of The Money

    A position is out-of-the-money when the trader’s prediction is incorrect, regarding the direction of the price by expiry time.

  • Payout

    The percentage amount that the trader will receive at option expiry if they are in-the-money.

  • Pip/Point

    The smallest move an exchange rate can make. Depending on context, this is normally one basis point (0.0001 in the case of EUR/USD)

  • Put Option

    When the trader has chosen a downward direction for the asset price because they believe the price of the asset will fall.

  • Rollover

    The interest rate variation between the two currencies when the settlement of a deal is rolled forward to a different date.

  • Stocks

    This is one of the four types of underlying assets.  Stocks are parts of a company which an individual can purchase. Companies traded on the stock market include Apple, Microsoft, Coca-Cola, and more.

  • Strike Price

    The price that an asset is at on the market when an option is opened.

  • Technical Analysis

    An effort to forecast future market activity by analyzing historic patterns in financial data such as charts, price trends, and volume. You can see popular Technical Analysis tools on the website, in the signals emails that you receive, and when you talk to your account manager or withthe  GreenFields Capital analysts.

  • Trading Alerts

    Trading alerts, also known as signals, are suggestions to traders as to what underlying assets and directions could be profitable to open a position on.

  • Volatility

    A statistical measure of a market or a security’s price movements over time, calculated by using standard deviation. High volatility is also associated with a greater degree of risk.

  • Aggregate Demand

    The sum of government spending, personal consumption expenditures and business expenditures.

  • Asset

    A stock, commodity, currency, or index.

  • Asset Index

    A list of all underlying assets that traders are able to trade on.

  • At The Money

    When the option expiry price is the same as the buying price.

  • Big Figure

    This dealer phrase is a referring to the first few digits of an exchange rate. the digits rarely change in normal market changes, hence are omitted in dealer quotes, especially in times of high market activity. For example, a USD/Yen rate might be 107.60/107.65, but would be quoted without the first three digits as, “60/65”.

  • Candlestick Chart

    This chart type indicates an asset’s trading ranges for the day as well as the opening and closing price. If the close price is lower than the open price, you will see the rectangle is shaded or filled. If the open price is higher than the close price, you will notice the rectangle is not filled.

  • Commodities

    This is one of the four types of assets.  Commodities are goods like oil, gold, corn, and more.

  • Currencies

    This is one of the 4 types of assets.  Traders attempt to predict which of two currencies will perform better, and therefore will always find currencies quoted in pairs.  Examples: USD/GBP, EUR/JPY, etc.

  • Expiry Price

    The price of the underlying asset at the time of expiry according to the real-time market price. The expiry price determines whether the option has expired in-the-money or out-of-the-money.

  • Expiry Time

    The designated time and date at which an option expires.

  • Federal Reserve (Fed)

    The Central Bank of the United States.

  • In the Money

    A trader’s option is in-the-money when his prediction on the direction (regardless if it was above or below) was correct. Options expires in-the-money, and the trader receives the full payout even if the trader was correct by just a single pip.

  • Indices

    This is one of the 4 types of assets.  Indices are collections of stocks that can be traded together.  For example: NASDAQ, FTSE 100, CAC, and more.

  • Investment

    Investing of money in order to gain profitable returns.

  • Long Term

    The type of instrument that deals with long term trades.  These positions have expiry times of days, weeks, or months.

  • Margin

    Funds deposited as collateral to cover any potential losses from adverse movements in prices.

  • Out Of The Money

    A position is out-of-the-money when the trader’s prediction is incorrect, regarding the direction of the price by expiry time.

  • Payout

    The percentage amount that the trader will receive at option expiry if they are in-the-money.

  • Pip/Point

    The smallest move an exchange rate can make. Depending on context, this is normally one basis point (0.0001 in the case of EUR/USD)

  • Put Option

    When the trader has chosen a downward direction for the asset price because they believe the price of the asset will fall.

  • Rollover

    The interest rate variation between the two currencies when the settlement of a deal is rolled forward to a different date.

  • Stocks

    This is one of the four types of underlying assets.  Stocks are parts of a company which an individual can purchase. Companies traded on the stock market include Apple, Microsoft, Coca-Cola, and more.

  • Strike Price

    The price that an asset is at on the market when an option is opened.

  • Technical Analysis

    An effort to forecast future market activity by analyzing historic patterns in financial data such as charts, price trends, and volume. You can see popular Technical Analysis tools on the website, in the signals emails that you receive, and when you talk to your account manager or withthe  GreenFields Capital analysts.

  • Trading Alerts

    Trading alerts, also known as signals, are suggestions to traders as to what underlying assets and directions could be profitable to open a position on.

  • Volatility

    A statistical measure of a market or a security’s price movements over time, calculated by using standard deviation. High volatility is also associated with a greater degree of risk.

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