Trading Glossary & Terminology
Learn the trading lingo and vocabulary and you’ll unlock the door to a whole host of trading secrets. Below we have collated the essential basic jargon, to create an easy to understand day trading glossary.
• Leverage rate – This is the rate your broker will multiply your deposit by, giving you buying power.
• Automated trading – Automated trading systems are programs that will automatically enter and exit trades based on a pre-programmed set of rules and criteria. They are also known as algorithmic trading systems, trading robots, or just bots.
• Initial Public Offering (IPO) – This is when a company sells a fixed number of shares to the market to raise capital.
• Float – This is how many shares are available to trade. If a company releases 10,000 shares in the initial IPO, the float would be 10,000.
• Beta – This numeric value measures the fluctuation of a stock against changes in the market.
• Penny Stocks – These are any stocks trading below $5 a share.
• Profit/Loss ratio – Based on a percentage basis, this is the measure of a system’s ability to generate profit instead of loss.
• Entry points – This is the price at which you buy and enter your position.
• Exit points – This is the price at which you sell and exit your position.
• Bull/Bullish – If you take a bullish position day trading you expect the stock to go up.
• Bear/Bearish – If you take a bearish position you expect the stock to go down.
• Market trends – This is the general direction a security is heading over a given time frame.
• Hotkeys – These pre-programmed keys allow you to enter and exit trades rapidly, making them ideal if you need to exit a losing position as soon as possible.
Financial Glossary – Word | Meaning | |
Ambiguity | confusion |
Array | Collection |
Backwardation | A market condition where The future price of a |
commodity is Higher than the presentor “spot” | |
price. This is bullish for long term prices. | |
Baffle | confuse |
Bayonet | Spiked |
Beating retreat | Cutting out/ fall back |
Beelined | Head straightway up |
Bolstered | Boost/strengthen |
Botched | Failed to |
Buffed | Polished |
Buoy | Float |
Buoyant | Optimistic |
Cable | Cable is a foreign exchange term used for the |
GBP/USD currency pair rate (British pound | |
priced in US dollars). The term cable is a slang | |
term used by forex traders to refer to the | |
exchange rate between the pound and dollar | |
and is also used to simply refer to the British | |
pound itself. | |
Catalyst | Medium/Means |
Chinwags | Chat/ informal conversation |
Chipper | Cheerful |
Clamber | Rise/climb |
Clipping its wing | Keeping within certain limits |
Crumbled | Destroy |
Curb | Limit |
Cyclical Stocks | Cyclical stocks are affected by macroeconomic |
changes, where its returns follow the cycles of | |
an economy. Cyclical stocks are generally the | |
opposite of defensive stocks. Cyclical stocks | |
include discretionary companies, such as | |
Starbucks or Nike, while defensive stocks are | |
staples, such as Campbell Soup | |
Dearth | Absence |
Defy gravity | Loose ground/hang |
Detrimental | Harmful |
Dismal | Depressing |
Doji Candle | A doji candle stick forms when a security’s |
open and close are virtually equal for the given | |
time period and generally signals a reversal | |
pattern for technical analysts. In Japanese, | |
“doji” means blunder or mistake, referring to | |
the rarity of having the open and close price | |
be exactly the same | |
Dollar wilts | Fading dollar |
Dovish | When the Fed or central bank is less worried |
about inflation and more worried about weak | |
growth, high unemployment, or even deflation | |
because the economy is either growing weakly | |
or even contracting | |
Dovish | Peaceful |
Dreadful Horrible | |
Echelon | Level |
Economy resurgence | Economy recovery |
Efficacy | Effectiveness |
Eke higher | Move higher |
Eked | Survive |
Eking | Gaining |
Escalated | Pushed forward |
Escorting | Leading to |
Fibonacci retracement | In finance, Fibonacci retracement is a method |
of technical analysis for determining support | |
and resistance levels. They are named after | |
their use of the Fibonacci sequence. Fibonacci | |
retracement is based on the idea that markets | |
will retrace a predictable portion of a move, | |
after which they will continue to move in the | |
original direction. | |
Flocked to | Headed to/gather to |
Forge ahead | Make progress/ go forward |
Fortified | Strengthened |
G 10 Currencies | The G10 currencies are ten of the most heavily |
traded currencies in the world, which are also | |
ten of the world’s most liquid currencies | |
Ground-warded | Fell down |
Halt | Pause |
Havoc | Chaos |
Head and Shoulder | A head and shoulders pattern is a chart |
formation that appears as a baseline with | |
three peaks, the outside two are close in | |
height and the middle is highest. In technical | |
analysis, a head and shoulders pattern | |
describes a specific chart formation that | |
predicts a bullish-to-bearish trend reversal. | |
Hefty | Strong |
Hitch up | Move upward |
Hopped | Jumped |
Hover | Float |
Impulse | Urge/desire |
Iron-Handed | Firm |
Jaded Trade | Dull trade |
Jitter | Shake |
Jittery | Jumpy/nervous |
Jovial | Cheerful |
Keeping light under a bushel | Modest/humble |
Lackluster | Dull |
Latching into | Gaining |
Leaden-footed | Slow down |
Leaps and Bound | To move upward |
Lethal | Toxic/deadly |
Lethargic | Slow/dull |
Limbo | Uncertainty |
Mainstay | Foundation/support |
Massive | Big |
Momentum | Force |
Novel | Fresh/new |
Nuts and Bolts | Fundamentals/ Key point |
On the horns of dilemma | Facing a choice between two equally |
undesirable alternatives | |
Oozing out release in drops | |
Pacify | Soothe |
Palpitated | Tremble |
Penny Stocks | Penny stocks are common shares of small |
public companies that trade for less than one | |
dollar per share. | |
Pinnacle | Top |
Plummet | Fall/weak |
Plunged | Dipped/fall |
Poised | Hover |
Probe | Investigate/Search |
Propelled | Push |
Proverbed | Said |
Pullback | Withdraw |
Rebound | Recovery |
Recoil | Jump back |
Reconcile | Settle |
Recouped | Regained |
Recuperate | Restore growth |
Reflation Trade | Reflation trades tend to involve assets exposed |
to faster economic growth, price pressures | |
and higher yields | |
Resurge | Rise |
Resurgent | Growing |
Retracement | Reversal |
Retreat | Withdraw |
Retrograde | Fall back |
Reverberated | Sounded/Echo |
Revved up | To trigger |
Ricochet | Bounce off/return |
Ruling with a rod of iron | Under strict monitoring |
Sabotage | Damage |
Seize Opportunity | Grab the opportunity |
Short Squeeze | In the stock market, a short squeeze is a rapid |
increase in the price of a stock owing primarily | |
to technical factors in the market rather than | |
underlying fundamentals. | |
Silver Lining | Being optimistic |
Slumping | Falling |
Spic and span | Cleaned/trimmed |
Spiraling down | Going down |
Spur | Stimulate |
Stanchions | Pillars |
Stirred | Shake |
Stumble on | Discovered |
Sturdy | Strong |
Sturdy Momentum | Strong drive |
Supplementary support | Additional hold |
Supplemented | Added |
Swiftly Trimmed | Quickly Cut |
Symptomatic | Suggestive |
Tainted | Changed |
Tedious | Dull |
Teeter on brink | Seesaw/Tremble |
Tenterhooks | Waiting anxiously |
Topping patterns | Bullish market |
Toppled | Drop down |
Topsy-turvy | State of disorder |
Tot up | Add up |
Traction | Hold grip |
Trajectory | Route |
Trench | Low/Trough |
Tumbled | Slipped |
Tumbling | Dropping |
Unveil | Show/disclose |
Unyielding | Tough |
Upturned course | Reverse route |
Vigilance | Alert/ Caution |
Wallstreetbets | WallStreetBets or WSB, is a sub-reddit where |
participants discuss stock and option trading. It | |
has become notable for its profane nature, | |
aggressive trading strategies, and role in the | |
GameStop short squeeze that caused losses on | |
short positions in U.S. firms toppingUS$70 | |
billion in a few days in early 2021 | |
Wave white flag | To give up on something |
Wedged | Trapped/stuck |
Well-fortified | Strengthened |
Winch Up | Boosted |
Wobble | Shake |
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