Trading Glossary

China’s central bank, influencing the yuan’s exchange rate and global trade.

Analyzes portfolio returns compared to benchmarks.

It suggests that when unemployment falls, inflation tends to rise, and vice versa.

An ETF strategy where the fund directly buys all or a representative sample of the assets in the underlying index it tracks.

The smallest price movement in a currency pair, usually equal to 0.0001. It’s used to measure changes in forex prices.

Pivot points are price levels on a chart that traders use to identify potential support and resistance. They’re calculated from the previous date’s high, low, and closing prices depending on the timeframe and help traders spot where the market might change direction.

A chart that uses Xs and Os to show price movements without considering time. It helps traders identify trends, support, and resistance more clearly.

A collection of financial assets managed to achieve investment goals.

Measures volatility of a portfolio relative to the market.

Spreading investments across assets to reduce risk.

The chance that an investment portfolio loses value or fails to meet goals, affected by market and asset changes, but reducible through diversification.

The amount of a security, asset, or contract that a trader or investor holds, either long (buy) or short (sell).

Determining how much capital to allocate per trade.

The trading session that takes place after regular market hours. It allows investors to react to news or earnings released later in the day.

The trading session that happens before the official stock market opens. It lets traders react early to news or earnings, but trading volume is usually lower and prices can be more volatile.