Glossary
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Algorithmic Trading
In electronic financial markets, algorithmic trading or automated trading, also known as algo trading, black-box trading or robo trading, is the use of computer programs for entering trading orders with the computer algorithm deciding on aspects of the order such as the timing, price, or quantity of the order, or in many cases initiating the order without human intervention.
Bearish
An outlook that the market prices are expected to go down or are already in decline. Compare to Bullish
Bullish
An outlook that the market is strong and should rise or is currently rising. Compare to Bearish
Contract for Difference (CFD)
A contract for difference (or a CFD) is a contract between a trader and a dealer. The two parties agree to pay the difference between the opening price of a trade and the closing price. Read More…
Day Trading
Day trading refers to the practice of buying and selling financial instruments within the same trading day such that all positions will usually, but not always, be closed before the market close of the trading day.
Exchange Rate
It’s the rate at which one country’s currency can be exchanged for another country’s currency. Read More…
Foreign Exchange (Forex or FX)
The exchange of currency from one country for currency from another country. Read More…
Open Offer
In the UK, an offer of securities, not being by way of a rights issue, to existing shareholders of an issuer.
Pip
A pip is the smallest unit in a forex quote. Read More…
Scalping
This is very quick trading – opening and closing a trade in the space of a few seconds – to take advantage of small changes in the market. It is a controversial practice.
Spread betting
Spread betting is a way of playing the financial markets without actually buying any shares. Instead you are betting on whether the market or share price will move up or down.
Trendline
This is a line in a graph that shows how the currencies in a currency pair are faring against each other. Read More…