Browse A–Z
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23 terms
A
226 terms
B
148 terms
C
267 terms
D
146 terms
E
64 terms
F
66 terms
G
64 terms
H
144 terms
I
185 terms
J
23 terms
K
23 terms
L
144 terms
M
109 terms
N
64 terms
O
65 terms
P
27 terms
Q
63 terms
R
67 terms
S
267 terms
T
25 terms
U
64 terms
V
25 terms
W
25 terms
X
9 terms
Y
64 terms
Z
24 terms
Core practitioner terms
Ask
Ask — The lowest price a seller is currently willing to accept for an asset. Market buy orders execute against the ask.
ATR (Average True Range)
ATR (Average True Range) — A volatility indicator measuring the average size of price ranges over a lookback period, commonly used to set stop distances and
Basis
Basis — The price difference between a derivative (such as a future) and its underlying spot asset. Converges toward zero at contract expiry.
Bear Market
Bear Market — A sustained decline in prices, conventionally defined as a fall of 20% or more from a recent high, accompanied by pessimistic sentiment.
Beta
Beta — A measure of how much an asset moves relative to the overall market. Beta above 1.0 means larger swings than the index; below 1.0 means smaller.
Bid
Bid — The highest price a buyer is currently willing to pay for an asset. Market sell orders execute against the bid.
Bid-Ask Spread
Bid-Ask Spread — The gap between the best bid and best ask. A core transaction cost and a real-time gauge of liquidity — spreads widen when liquidity is scarce.
Breakout
Breakout — A price move beyond a defined support or resistance level, often accompanied by increased volume, signaling potential trend continuation or
Bull Market
Bull Market — A sustained rise in prices, typically driven by expanding liquidity, earnings growth, or improving sentiment.
Candlestick
Candlestick — A chart element encoding open, high, low, and close for a time period. The body shows open-to-close range; wicks show the extremes.
Carry Trade
Carry Trade — Borrowing in a low-yield currency or instrument to invest in a higher-yielding one, profiting from the rate differential while accepting
Correlation
Correlation — A statistical measure (-1 to +1) of how two assets move together. Diversification depends on holding assets with low or negative correlation.
Credit Spread
Credit Spread — The extra yield corporate bonds pay over government bonds of the same maturity, compensating investors for default risk. A key risk-appetite
DCF (Discounted Cash Flow)
DCF (Discounted Cash Flow) — A valuation method that estimates intrinsic value by projecting future free cash flows and discounting them to the present using a
Drawdown
Drawdown — The peak-to-trough decline in account equity or asset price, expressed as a percentage. Maximum drawdown measures the worst such decline
Fibonacci Retracement
Fibonacci Retracement — Horizontal levels drawn at key ratios (38.2%, 50%, 61.8%) of a prior price move, used to anticipate where pullbacks may find support or
Funding Rate
Funding Rate — The periodic payment between long and short holders of perpetual futures that tethers the contract price to spot. Positive funding means longs
Hedge
Hedge — A position taken specifically to offset the risk of another position, such as shorting index futures against a stock portfolio.
Inflation
Inflation — A sustained rise in the general price level, diminishing the purchasing power of money. Measured by indices such as CPI and PCE.
Leverage
Leverage — Controlling a position larger than posted capital by borrowing or using derivatives. Multiplies both gains and losses relative to account equity.
Limit Order
Limit Order — An order to buy or sell at a specified price or better. Rests in the order book supplying liquidity until filled or cancelled.
Liquidation
Liquidation — The forced closure of a levered position by a broker or exchange when account equity falls below maintenance margin requirements.
Liquidity
Liquidity — The ease of transacting in size without moving the price. Deep order books and tight spreads indicate high liquidity.
MACD
MACD — Moving Average Convergence Divergence — a momentum indicator comparing two exponential moving averages, with a signal line and histogram showing