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Financial Terminology
Most of our guides here at investfox contain various trading-related terminologies like pips, short squeeze, long position, stop-loss, cable, and many more. If you are familiar with the letters that make up these words but don't quite understand how they are used in relation to financial markets - you are in the right place. Our expert team here at investfox has composed a detailed description of every trading term one needs to know to get ready for trading and go, go, go.
What Does Stop-Out Level Mean In Trading
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21 February 2024
Thousands of traders buy and sell securities using leverage, which allows them to increase their buying power and boost potential profits.
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What Are Economic Indicators In Trading?
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21 February 2024
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21 February 2024
When making trading decisions, market participants need to consider a wide range of factors to avoid mistakes and financial losses.
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What Does Slippage Mean In Trading?
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21 February 2024
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21 February 2024
Traders with even minimal experience on the stock market would have noticed that the prevailing market price and the actual price documented in the order can be different, even for the most liquid of stocks.
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What Is A Short Squeeze In Trading?
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21 February 2024
The financial markets can be home to interesting trading patterns. Sometimes, the price of an instrument skyrockets with seemingly no clear prior warnings.
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Short Position Meaning In Trading
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21 February 2024
In the dynamic world of financial markets, traders employ various strategies to navigate price movements and capitalize on market trends. One such strategy involves taking a "short position”, or short-selling.
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Long Position Meaning In Trading
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21 February 2024
Buying and selling on the capital markets ensure liquidity for all market participants. Traders on the market tend to react to major news developments by opening long and short positions on the market in anticipation of a price increase/decrease of a certain instrument.
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What Is The Form 10-K?
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21 February 2024
The U.S. stock market is home to thousands of sought-after companies that offer their shares to local and international investors. This increases the demand for transparency in terms of financial performance, as well as governance-related issues.
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What Is The FOMC?
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21 February 2024
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21 February 2024
The U.S. Federal Reserve is an important regulatory player on the global financial markets. While it is not directly concerned with stock market performance, it is the primary body that sets the monetary policy of the country, which greatly affects the performance of various asset classes.
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What Are FLEX Options?
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21 February 2024
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21 February 2024
Options trading is a complex strategy used by traders to hedge existing positions and speculate the market. Traders can choose between a variety of different options contracts, which are structured in order to meet specific market conditions.
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What Does FOMO Mean In Trading?
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21 February 2024
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21 February 2024
The capital markets can be home to numerous lucrative opportunities at any given moment. Investors and traders alike rush to take advantage of market opportunities and generate attractive returns.
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What Does FUD Mean In Trading?
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21 February 2024
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29 March 2024
Trading can be a mentally tasking process that involves a lot of research and fast-paced decision making. Traders can often second guess themselves right after placing orders, which can affect their mental state and stress levels.
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What Is A Margin Call?
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21 February 2024
A margin call is a critical concept in the realm of financial trading, particularly in the context of margin accounts.
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What Does Debt Ratio Mean In Stock Trading?
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21 February 2024
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21 February 2024
Stock trading and investing can be a highly complex process that involves hours of research to pick the right stocks for your investment objectives.
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What Is NYSE Arca?
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20 February 2024
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20 February 2024
The New York Stock Exchange is perhaps the most popular securities exchange in the world. With the largest combined market capitalization, the exchange is home to 2,400 equities from a wide range of sectors.
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What Does CBOE Mean In Options Trading?
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20 February 2024
Options trading is a popular method for traders and investors to hedge against short-term price volatility of their shareholdings.
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What Does An Accredited Investor Mean?
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20 February 2024
The global capital markets are easily accessible to millions of investors who can open a brokerage account and gain access to thousands of instruments from a variety of markets, such as forex, stocks, commodities, crypto, etc.
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What Does Order Flow Mean in Trading?
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20 February 2024
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20 February 2024
Capital markets consist of millions of buy and sell orders that are placed and executed every day. The sum of these orders constitutes the trading volume that other market participants can look at to decide how liquid a particular instrument is. This is important for traders who place large orders and do not want to distort the price on the market.
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What Does RSI Mean In Trading?
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19 February 2024
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29 March 2024
Trading is a highly technical process that involves collecting and analyzing data from a variety of sources, with the price chart being one of the most important such sources.
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What Does Benchmark Mean In Trading?
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19 February 2024
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19 February 2024
When traders decide to pick an instrument to add to their portfolio, they suddenly have a very diverse market to choose from, which can be more difficult than it initially sounds.
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What Does An Indicator Mean In Trading?
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19 February 2024
Trading on the financial market can be a highly technical process that involves analyzing price charts and gathering data, all as the market moves up and down, sometimes at amazing speeds.
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What Does ESG Mean In Trading?
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19 February 2024
The stock market is home to some of the largest and most influential corporations in the world. These companies not only affect the economy and consumers, but the planet and the communities that they serve.
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What Does Drawdown Mean In Trading?
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19 February 2024
Asset prices on financial markets move up and down all the time. When prices reach peaks over a certain time, they are likely to fall down to a trough.
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What Are Bollinger Bands In Trading?
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18 February 2024
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19 February 2024
Technical indicators are an integral part of the trading experience and make data more manageable for traders on the market.
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What Does HFT Mean In Trading?
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18 February 2024
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18 February 2024
As technological advancements take hold on the global financial markets, the practice of automated trading has become more and more sophisticated.
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What Are Dark Pools In Trading?
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17 February 2024
The financial markets handle billions of dollars in transactions every day. However, not all of this trading is done through public exchanges that everyone can access.
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What Is A Day Order In Trading?
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17 February 2024
Choosing the right order types is incredibly important for traders. Sometimes the market moves at breakneck speeds and placing the appropriate order at the right time can be the difference between profit and loss.
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What Is A DRP In Stock Trading
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17 February 2024
Generating dividend income is one of the most popular reasons for stock investors to choose which securities to invest in.
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What Are Forward Contracts?
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17 February 2024
Financial derivatives are an integral part of the global financial markets. Forwards contracts are among the derivatives that are popular among traders which are not traded on organized exchanges and are instead privately negotiated, making them unique in terms of customization and counterparty risk.
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What Is A Bond Prospectus?
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17 February 2024
The bond market is one of the most popular asset markets in the world that attracts billions of dollars in smart money every year.
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What Is A Bear Market?
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The global financial markets go through cycles of booms and busts over time. Periods of rapid growth are followed by market pullbacks and corrections.
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What Is A Bull Market?
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The financial markets are constantly evolving and trends change all the time. When the broader market is showing signs of continuous growth and price appreciation, analysts and market participants tend to call this phenomenon a “bull market”.
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What Is Value Investing In Stocks?
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16 February 2024
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16 February 2024
Stock investing can be an incredibly complex decision. While the process of buying and selling stocks is relatively simple and straightforward, formulating a profitable investment strategy is more challenging than it may seem.
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What is The Spot Price in Forex trading?
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16 February 2024
A spot price in Forex trading refers to the current exchange rate at which a currency pair can be bought or sold for immediate delivery and settlement.
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What is the Range in online trading?
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27 February 2024
When price tends to move between certain high and low prices, we call it a range. When markets are trading in the range, traders can make profits by following the price action inside the range.
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ATH, aka All-time-high term, explained
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16 February 2024
In the world of financial trading, the term ‘ATH’ or All-Time High, is a crucial concept that carries significant importance for investors, traders, and other market participants.
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Longing or opening a Long Position explained in financial trading
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Going long or taking a long position simply means buying an asset at a certain exchange rate.
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What is going Short aka opening a Short Position?
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Short selling or shorting in financial trading refers to the activity of selling an asset at a certain price and time. In Forex trading, shorting means selling the currency pairs for profits.
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What is gapping in financial trading? Definition and examples
Gaps happen when the opening price is significantly higher or lower than the price of a previous close.
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The meaning of the Closing Price in financial trading
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15 February 2024
The closing price is the last recorded price of an asset before the trading day or session is over. However, in Forex trading which is open 24/5, and in crypto markets which are open 24/7, the closing price usually refers to the close price of a previous bar or candle.
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Understanding the Opening Price definition
Opening price is a concept in financial markets. In stock trading, the opening price is the price of an asset at the market's opening.
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What is a Bull Market, and how to understand it?
Bull market refers to uptrends in financial markets. When prices go up for long periods, we say that there is a bull market at play.
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The definition of the Bear Market and its key signs
Bear markets refer to the downward movement of the price of any asset on financial markets. When EURUSD moves downward, we say that EURUSD is facing a bear market.
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Quote Currency definition in currency trading
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14 February 2024
In Foreign exchange markets, currency pairs are traded against each other. Currencies are denominated against each other.
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What is Carry Trade? Explanation and Examples
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14 February 2024
Borrowing money at lower interest rates and investing it in higher-yielding assets is the simplest description of a classical carry trade approach.
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Base Currency definition in FX trading
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14 February 2024
Base currency and quoted currency are fundamental concepts of Foreign exchange markets. A Base currency refers to the first currency you read in a currency pair. In the EURUSD pair, the EUR is the base currency, and the USD is the quoted currency. Although the concept is straightforward, it is often overlooked, and many beginners have difficulty grasping its significance.
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What Does A Stock Market Bubble Mean?
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14 February 2024
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14 February 2024
The stock market attracts billions of dollars in capital every day. Stocks are valued based on supply and demand and these factors can be affected by a wide range of variables, such as market sentiment, monetary policy, geopolitics, etc.
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What Does Derivative Mean In Trading?
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14 February 2024
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14 February 2024
The global financial markets are incredibly diverse. Traders can buy and sell shares in companies, currencies, commodities, etc.
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GTC Order Definition And Meaning In Trading
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14 February 2024
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14 February 2024
Market orders are some of the most basic and important tools at traders’ disposal. There are a few different market order types traders can use to have more autonomy in how they structure their strategies, when they buy and sell.
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What Is A Stock Split?
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20 March 2024
Stocks on an exchange come in all shapes and sizes. Some cost less that a dollar, while others, such as Berkshire Hathaway stock (BRK.A) cost hundreds of thousands.
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What Is A FOK Order In Financial Trading?
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14 February 2024
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14 February 2024
The global financial markets can be highly volatile and wealth can be created and evaporated within a few hours. This creates a sense of urgency among market participants to place constraints on their trading strategies and find ways to mitigate downside risks.
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What Is The Dow Jones Industrial Average?
The U.S stock market attracts millions of stock investors from around the world every year. Therefore, measuring the performance of the overall stock market is essential for every investor. Two of the most popular benchmarks of the U.S stock market are the S&P 500 and the Dow Jones Industrial Average.
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What Is Delisting And Why Does It Happen?
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13 February 2024
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13 February 2024
Financial assets enter the market all the time, which improves variety and adds liquidity to the market. However, while exchanges may admit new issuers for trading, they can also bar them from being listed.
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What Is The CPI And Why Is It Important?
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13 February 2024
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13 February 2024
Inflation is one of the most important determinants of market performance. Whether it is the stock, forex, or bond market, inflation drives investor decision making and as market conditions shift, certain financial assets may seem more attractive than others.
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Market Consolidation Definition And Example
Financial markets are constantly evolving, which is shown by the moving prices of financial instruments, such as stocks, currency pairs, futures contracts, cryptocurrencies, etc.
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Clearinghouse Definition And Meaning In Forex
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13 February 2024
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13 February 2024
Millions of transactions take place on the forex market every day. Processing these transactions is not an easy task and requires separate legal and commercial bodies to conduct seamlessly.
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What Does Cable Mean In Forex Trading?
The forex market consists of major, minor, and exotic currency pairs. Major pairs in particular are some of the most stable and liquid investments available on any financial market.
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What Does Base Rate Mean In Forex?
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13 February 2024
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13 February 2024
The global forex market is a highly volatile one/ A variety of major news releases can greatly affect the performance of major currencies and pairs. However, none have as direct of a correlation with the forex market, as interest rates and the monetary policy of central banks.
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What Are The Three Major Forex Trading Sessions?
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13 February 2024
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13 February 2024
The global forex market is a highly fragmented place. Countries from around the world have access to the global market and time zone differences can cause the liquidity to be unevenly distributed on the market.
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What Does Dividend Yield Show?
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9 February 2024
Capital gains are the primary reason why investors choose to buy stocks, but it certainly is not the only one. Stocks of large, well-established companies often pay dividends, which are regular cash payments made to the brokerage accounts of a company’s shareholders, who can choose to keep the money or reinvest it in exchange for more shares.
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What Is An Underlying Asset In Financial Trading?
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9 February 2024
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9 February 2024
The world of investing is a diverse one. Investors can choose to directly own assets, such as bonds, stocks, crypto, etc. On the other hand, they can invest in financial derivatives and funds, the performance of which depends on the asset they are tracking.
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What Is A Put Option?
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9 February 2024
Put and call options are some of the most popular derivatives traders around the world have access to. Such derivatives allow traders to speculate on the price of the underlying asset, without the obligation of owning the asset itself.
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What Is A Call Option?
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9 February 2024
Derivatives are an integral part of the global financial markets. Traders have the opportunity to speculate the price of an underlying asset without the requirement of owning the assets outright.
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What Does Implied Volatility Mean In Options Trading?
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9 February 2024
Options trading is a popular way for market participants to profit from both the upside and the downside movements on the underlying security.
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Strike Price Definition And Meaning In Options Trading
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9 February 2024
Options trading is a very popular hedging and speculation strategy on the market. Traders can buy and sell call/put options on virtually any tradable asset, which makes options very versatile.
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Strike Price Definition And Meaning In Options Trading
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9 February 2024
Options trading is a very popular hedging and speculation strategy on the market. Traders can buy and sell call/put options on virtually any tradable asset, which makes options very versatile.
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What Is A Cross Currency Pair?
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8 February 2024
The global forex market is a diverse place of exchange where currencies from some of the wealthiest economies are bought and sold. These are often referred to as major currencies and make up the bulk of the trading volume on the market. Major currency pairs all involve the U.S dollar, which has been the de facto world reserve currency for decades now.
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What Does A Soft Commodity Mean?
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8 February 2024
As we know, commodities trading is a popular method for market participants to gain exposure to price changes in various crucial products, such as oil, gas, gold, wheat, maize, etc.
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What Are FOMC Minutes In Forex?
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8 February 2024
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8 February 2024
The global forex market is a highly volatile one that reacts rapidly to changing market conditions and news releases. One of the most important factors that affects the performance of currencies on the forex market is the interest rate set by the central bank of the issuing country.
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What Is A Stock Buyout?
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8 February 2024
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8 February 2024
The stock market is home to a wide variety of companies, from small startups to multinational corporations. Individuals and institutions flock to the market to buy and sell stocks every day.
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What Does Contrarian Investing Mean?
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8 February 2024
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8 February 2024
Investing requires a multidisciplinary approach and an analysis of multiple complex factors that affect the performance of financial instruments.
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What Is Stock Volatility?
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8 February 2024
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8 February 2024
The stock market is home to thousands of stocks from various industries. The prices of these stocks are constantly changing - presenting buying and selling opportunities for market participants.
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What Does A Nano Cap Stock Mean?
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8 February 2024
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8 February 2024
Stocks listed on an exchange can vary greatly in terms of market capitalization. From multi billion dollar companies in the S&P 500 to small prerevenue businesses, the stock market has something for everyone.
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What Is A SPAC?
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8 February 2024
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8 February 2024
When companies go public on a stock exchange, a direct IPO is the most popular method to do so. However, it is no longer the only possible method available to companies.
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IPO Definition And Meaning In Stock Trading
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8 February 2024
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8 February 2024
When a company issues stock, this is part of a complicated process. Major stock exchanges, such as the New York Stock Exchange and Nasdaq, have high standards and requirements in place to make sure that the best offerings make the cut.
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What Is A Ticker In Stock Trading?
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8 February 2024
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8 February 2024
The stock market is home to thousands of stocks from a variety of industries. From technology startups to major manufacturing companies, the stock market has something for investors of all interests and backgrounds.
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What’s The Difference Between Senior And Subordinated Bonds?
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8 February 2024
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8 February 2024
Fixed-income securities, such as bonds, are popular investment vehicles for investors to accrue wealth in the long term. However, the long-term nature of bonds also comes with a challenge. A lot can happen on the market over a year, let alone a decade.
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What Are Junk Bonds And How Are They Different?
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8 February 2024
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8 February 2024
The global bond market is a highly diverse place where investors can come across fixed-income securities of varying principal sizes, maturity dates, credit ratings, etc.
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What Are TIPS In Bond Trading?
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8 February 2024
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8 February 2024
Bond investing can be a more complicated ordeal than most investors assume. A wide variety of factors can affect bond performance, such as interest rates, market sentiment, inflation, etc.
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Callable Bond Definition And Meaning
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7 February 2024
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7 February 2024
The bond market is a popular destination for individual and institutional investors alike. There are many different types of bonds available on the market that offer varying coupon payments, redemption options and maturities.
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What Does A Bond Coupon Mean?
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7 February 2024
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7 February 2024
The bond market is a source of reliable long-term investments during periods of high interest rates. While the prices of bonds do fluctuate on the market, this is not the primary purpose of bond investments.
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REIT Definition And Meaning In Stock Trading
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7 February 2024
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7 February 2024
Stock traders enjoy access to a wide selection of equities. From S&P 500 funds to high-risk tech startups, the market seems to have something for everyone.
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What Does OBV Mean In Trading?
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7 February 2024
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7 February 2024
Trading on the financial markets can be a highly technical process. Traders use a wide variety of technical indicators to identify and confirm market trends and make profitable trading decisions.
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Social Trading Definition And Meaning For Beginners
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6 February 2024
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6 February 2024
The financial markets can be full of variety and complex, interesting trading strategies. Trading inherently deals with human emotions, such as fear, excitement, confidence, greed, etc.
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What Is COMEX In Financial Trading?
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6 February 2024
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6 February 2024
Futures and options trading is a popular strategy for market participants to hedge existing positions and speculate the market.
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Currency Pegs Explained For Forex Beginners
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17 January 2024
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17 January 2024
The global forex market is a diverse and vibrant place where billions of dollars worth of capital are exchanged on a daily basis.
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What Is KYC In Forex Trading And Why Is It Important?
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15 January 2024
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15 January 2024
The global forex market attracts millions of traders from around the world. The promise of high leverage and volatility is very appealing to most traders that want to safeguard and grow their wealth.
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What Does The US Dollar Index Measure?
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15 January 2024
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15 January 2024
The United States dollar is the pillar of the global economy. The importance of the currency cannot be understated. From oil markets to central banks reserves, USD has been the primary mode of exchange for decades.
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What Does A Black Swan Event Mean In Financial Trading?
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15 January 2024
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15 January 2024
The financial markets are delicate systems that unite millions of players around the world. Market performance depends on a wide variety of factors working in tandem and any major disruption can cause investors to panic and returns to plummet.
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PMI Index Definition And Usage In Forex Trading
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15 January 2024
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15 January 2024
Forex traders on the market need to consider a variety of factors when making trading decisions. The global economy is never stagnant and the markets reflect that. Due to an ever-changing economic landscape, traders need certain metrics to evaluate the health of the economy and make informed decisions.
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What Does RoRo Mean In Forex Trading?
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15 January 2024
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15 January 2024
The global forex market is the most volatile market in the world. A multitude of economic and geopolitical factors affect currencies around the world and traders need to be aware of them if they want to trade successfully and generate consistent profits in forex.
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What Are Safe Haven Currencies And How To Invest In Them?
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14 January 2024
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15 January 2024
The global financial markets can fluctuate greatly over the course of a year. Recessions and booms can alternate, which can test the endurance of even the most seasoned investors.
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What Does Lot Size Mean In FX?
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29 December 2023
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29 December 2023
Forex trading is one of the most popular strategies for securing and building your wealth in the financial markets. Choosing which currency pairs to trade and when to enter and exit the market is crucial for successful trading.
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What Is An Earnings Report And How Is It Useful?
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29 December 2023
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29 December 2023
The stock market is home to thousands of companies with different backgrounds and profiles. Choosing the right stocks for your portfolios can be quite challenging, as the market is constantly evolving and prices are shifting.
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What Are Treasury Bills And How Do They Work?
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29 December 2023
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29 December 2023
The financial markets can be highly volatile at the best of times. While this opens great opportunities for traders and investors, it also carries a lot of risk that some people might not be comfortable with.
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What Is A Commodity In Financial Trading?
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28 December 2023
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28 December 2023
Commodities are some of the most actively traded assets in the global markets. Every day, retail and institutional investors buy and sell commodities futures contracts to generate profits and enhance liquidity on the market.
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What Is A Futures Contract?
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28 December 2023
The commodities market attracts millions of traders every day. Traders buy and sell contracts on a variety of commodities, such as oil and gas, gold ,silver, agricultural products, livestock, etc.
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What Is A Roth IRA?
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28 December 2023
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28 December 2023
Employees in the United States have plenty of options when it comes to how to manage their retirement savings. From traditional individual retirement accounts (IRAs) to 401(k) plans sponsored by employers, employees can invest in a broad range of asset classes, including stocks, ETFs, bonds, mutual and money market funds, etc.
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What Is A 401(k) Plan?
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28 December 2023
Retirees in the United States are some of the largest providers of liquidity to the financial markets. Pension plans allow working-age adults to balance their retirement portfolios by investing in a variety of stocks, funds and bonds.
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Hedging Definition And Meaning In Financial Trading
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28 December 2023
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28 December 2023
Trading and investing in the financial market is associated with a lot of risk. The market can be highly volatile and participants can easily lose their money in a short period of time.
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What Are Greeks In Options Trading?
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28 December 2023
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28 December 2023
Options trading is a popular method of amplifying potential profits by entering riskier trades and taking positions on the underlying asset without having to own the asset itself.
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What Does EPS Mean In Stock Trading?
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28 December 2023
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28 December 2023
The stock market is home to thousands of stocks from dozens of industries. Choosing the right ones to trade or invest in can be challenging even for seasoned professionals. This creates the demand for various metrics by which to compare stocks and choose the ones that fit the expectations of the investor.
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What Does Market Cap Mean In Stock Trading?
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14 December 2023
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14 December 2023
The stock market is home to thousands of stocks from a wide range of industries. Investors can choose between early-stage startups to industry giants with considerable market share and balance their portfolios accordingly.
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What is Leverage in financial trading and how to use it right?
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10 December 2023
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Simply put, leverage is how much money a trader can borrow from their broker to initialize trading positions on financial markets.
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How do you define financial markets liquidity and what is it?
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9 December 2023
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9 December 2023
Liquidity is one of the basic terms in financial trading be it Forex, stocks, or any other markets. Understanding liquidity and countering its negative effects can greatly enhance trading performance.
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What is Slippage in Forex trading and how does it work?
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8 December 2023
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In Forex and financial markets in general, slippage refers to the difference between the expected price of a trade and the actual price at which the trade order is executed. Slippage can occur at any time but usually, it happens during high market volatility times, low liquidity, or delays in order execution.
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Support and Resistance levels: definitions and usage in FX trading
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8 December 2023
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8 December 2023
Support and resistance are widely used in technical analysis of Forex and other financial markets. They act like a ceiling and floor for the price and are significant price zones where the price of an asset usually has difficulties moving beyond.
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What is Pip in FX trading, and how does it work?
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8 December 2023
Pips or percentages in points are the standard way of measuring the price movement in Forex. It helps traders define profits and losses and helps them see price movements more intuitively.
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What is Spread in FX trading, and how is it calculated?
If you are new to financial markets and FX trading, you would already hear the term spreads. Many brokers advertise low spreads, and it is essential to know the ins and outs of this crucial part of trading.
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What is Swap aka Rollover in FX trading?
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8 December 2023
Swaps are an essential part of FX trading that can affect profitability depending on the trading strategy.
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What Is A Pip In Forex Trading?
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6 December 2023
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6 December 2023
Forex is the most frequently traded security on the global financial market. If you’ve ever been involved in the forex market before, or read some market news, you may have come across a term called ‘pip’.
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Margin vs Leverage, What Are These Terms And Is There Any Difference?
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6 November 2023
If you have ever traded on financial markets before, you might have heard the terms ‘margin’ and ‘leverage’.
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What Is Dollar-Cost Averaging (DCA)?
Investing can be challenging regardless of the broad market sentiment. Short-term fluctuations can easily turn a potentially profitable trade negative. To combat this, some investors choose to ignore the short-term price movements of a stock and look at the fundamentals to decide whether to commit their capital to the stock or not.
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What does price-earnings ratio mean in stocks?
The price-to-earnings ratio, or PE ratio for short, compares the stock's price to its earnings.
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What are bid and ask prices in financial trading?
When you buy or sell any financial instrument, you will see different prices denoted to the security, which is a reflection of the fluctuations in that specific market.
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What is a margin call in Forex and stock trading?
A margin call is a notification that you receive from your broker that your trade requires your attention. Traders are required to act quickly to the margin call because it is going to decide the future of their investment.
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What does ECN execution mean in FX trading?
Forex trading has seen enormously developed in recent years, everything became accessible online, and any trader can buy and sell currencies from anywhere. In addition, traders can now use different ways to place their market orders.
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What is a stop out level?
Margin trading is quite popular in the Forex trading market. While it can increase your profits, it also comes with downside risks traders should know about. Trading on margin can help traders maximize their profits from Forex.
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How does stop-loss and take-profit work in Forex trading?
Stop-Loss (SL) and Take-Profit (TP) orders help you control the gain and the loss of your trades. These tools help your broker understand your goals and your expectations.
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What is an Ex-Dividend Date and how to find It for a certain stock?
Investing in stocks and earning dividends can make a significant income. However, when you are hunting for receiving dividends, you do not want to miss the ex-dividend day if you wish to qualify for the next dividend payment.
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What is equity in financial trading?
In financial trading, gains from active trading positions are usually confused with the trading account balance. Equity in financial trading is calculated by adding or deducting the value of your active trades to your balance. It is different from the account balance, which shows the money you have in your account from closed trading positions.
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What are bonds and are they worth investing in?
Bonds are financial securities issued by governments or corporations for the exchange of cash flow. The bond issuer uses the allocated cash to fund different projects or for research and development reasons.
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What is an ETF meaning and definition in trading?
ETFs might look similar to mutual funds, but they both are run by several investors who invest in a basket of securities, and they are considered a safer investment for beginners as they are less volatile.
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