Financial Glossary for Traders & Investors
Explore the key trading and market terms and their meanings in this comprehensive glossary. Whether you're new to trading or looking to refine your knowledge, our financial glossary provides clear definitions of essential terminology used across global markets. From fundamental concepts to advanced trading strategies, discover the language of finance and enhance your understanding of the markets.
P
Price divided by earnings per share.
A trading strategy where a trader identifies two historically correlated assets and simultaneously takes long and short positions in them.
Par Value is the face value or nominal value of a security, such as a bond or stock, as stated by the issuer.
An execution in which only a portion of a the trading order is filled.
An active buy or sell order placed in the market that has not yet been executed or canceled.
A measure of the total spending by consumers on goods and services, reflecting inflation and economic health.
The smallest standard FX price move (0.0001).
A calculated price level used in trading to identify potential support and resistance levels. It’s based on the previous period’s high, low, and close prices, helping traders spot possible reversal or breakout points.
A Point-and-Figure (P&F) Chart is a price-focused technical chart that ignores time and volume. It uses X’s for rising prices and O’s for falling prices, plotting only when the price moves by a set amount (box size). A new column forms when the price reverses by a defined threshold (reversal amount).
A collection of held investments. It can include assets from various markets like forex, indices, shares, and more.
The aggregate exposure in one market.
Price Action is the analysis of an asset’s raw price movemen, using trends, support/resistance, and candlestick patterns, without relying on technical indicators, to make trading decisions.
An economic indicator that measures the business activity and health of the manufacturing and services sectors based on surveys of purchasing managers.
A contract that gives the right, not the obligation, to sell an asset at a set strike price.