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.
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A financial measure that estimates the maximum potential loss a portfolio or investment might face over a certain time period, with a given confidence level.
A stock that is considered to be undervalued compared to its fundamentals, like earnings, dividends, or book value.
The additional money that one party in a financial contract (like a futures or derivatives trade) must pay to the other when the market moves against their position.
A measure used in options trading that shows how much an option’s price will change when the volatility of the underlying asset changes by 1%.
A financing method where capital is invested in startups or young businesses in exchange for ownership shares.
An index that measures the market’s expectation of volatility (price swings) in the next 30 days, based on options prices for the S&P 500. A high VIX price means that investors expect big market movements (more uncertainty or fear), while a low VIX price means calmer, more stable markets. Read more.
A statistical measure of how much the price of an asset fluctuates over time. Higher volatility means greater price swings, while lower volatility indicates more stable prices.
Refers to the total number of shares or contracts traded for a particular asset during a specific time period (like a day).
An advanced charting indicator that displays trading activity over a specified time period at specified price levels.
The average price of an asset throughout the trading day, weighted by the volume traded at each price.
The entitlements of common stock shareholders to vote on significant company matters, exercised at annual meetings or through proxy voting.