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 security or financial asset upon which a derivative's price is based. Examples of underlying assets can be forex, indices, share, and commodities.
A type of investment fund that pools money from multiple investors to buy a diversified portfolio of assets. Investors buy units in the trust, and the value of their investment rises or falls based on the performance of the underlying assets.
Means that the business owner is personally responsible for all the debts and financial losses of their business. If the business can't pay its debts, the owner may have to use their personal money or assets to cover those debts.
The profit or loss on an investment that has not yet been sold or closed out. It represents the current value change of a position based on market prices but isn’t locked in until the position is actually sold.
The act of closing a trading position or account.
On a candlestick chart, this is the line (or wick) above the body of the candle. It shows the highest price reached during a trading period, beyond the opening or closing prices.
The potential for an asset or investment to increase in value. It’s the expected gain or positive price movement that investors hope to achieve.
A trade or transaction that occurs at a price higher than the previous trade’s price. It indicates a short-term increase in the price of a security.
The ISO code for the U.S. dollar, the national currency of the United States.