Glossary
of terms at CFI

 Annual return in terms of trading terminology, is the return on trading funds that a trader or trad...

The ask price (also known as the offer), is the lowest price that a seller is willing to offer (sell...

Assets are defined as resources with an economic value that a country, company or individual possess...

In the foreign exchange markets, currency prices are displayed or quoted as currency pairs such as G...

Bearish is a term used to describe how a trader feels about the direction of a certain financial mar...

The bid price is the highest price that a buyer (the bidder) is willing to pay for goods or services...

Bonds are fixed-income instruments, and in basic terms, represent a loan made by an investor to a bo...

A  breakout is when the price of a financial instrument or asset trades below a level of support or ...

Bullish is a term used to describe how a trader feels about the direction of a certain financial mar...

Buying a financial instrument is the act of taking a [long position] on the instrument, speculating ...

 A capitalization-weighted index can also be referred to as a market-value-weighted index. This is a...

 This is a currency trading strategy that benefits from the differentials between a currency offerin...

Commodity currency refers to the types of currencies that move in parallel with the price of global ...

 Contracts for difference, otherwise known as CFDs, commonly refer to an agreement between two parti...

The counter currency, otherwise known as the quote currency, is the second currency listed within a ...

Currency correlation refers to the relationship between two different currency pairs. A positive cor...

A day order is when a trader informs their broker to buy or sell a financial [instrument] at a prede...

Day trading refers to traders who focus on short-term trading, entering and exiting positions over a...

A decentralized market utilizes a digital platform to allow traders to trade directly between themse...

 Direct market access or DMA is used when traders place trades directly in the electronic order book...

A downtrend refers to when the[price action] of a [financial instrument] moves to a lower price poin...

Drawdown is used by traders to measure any decline in investments over a specific time period and is...

Entry point refers to the price at which a trader [sold] or [bought] a financial [instrument] and th...

Equities, in the simplest terms, can be described as shares in the ownership of a company.   Equit...

Exchange-traded funds or etfs are investment funds that trade onvarious stock exchanges. etfs trade ...

Execution in financial trading terms refers to the finalisation of an order by a trader to either bu...

The exit point is the time that a trader decides to close their position. Knowing when to take or ba...

A currency pair is referred to as “exotic” when it consists of one major currency and one currency f...

 In trading terminology, the term ‘filled’ refers to when an order placed by a trader has been retur...

Financial markets, broadly speaking, are any place where governments and organizations can go to obt...

The term Forex is short for foreign exchange and refers to the buying and selling of currency on the...

 Fundamental analysis is a market analysis technique for determining the [intrinsic value] of a [fin...

Futures are financial contracts that obligate the buyer and seller of the contract to complete a tra...

A good till canceled order, commonly referred to as a GTC order, is an open order used by traders to...

Hedging is a risk management strategy that mitigates the risk of loss due to price fluctuations by o...

High-frequency trading, often referred to as hft, refers to algorithmic trading undertaken by system...

Illiquidity describes when a trader is unable to trade an [instrument] in the market in a straightfo...

The term “indices” is the plural of the word “index”, and in trading terms, an index is a way of tra...

Inflation is generally quoted in percentages and is the measure of the average price at which a sele...

Financial instruments are anything that can be used for trading, mainly for speculation or hedging p...

Interest rates are the rate at which a lender is prepared to charge for the use of financial service...

The worth of a [financial instrument] or asset is referred to as intrinsic value. Intrinsic value is...

At cfi you trade with what is called a margin account. margin is the term used when we refer to the ...

The margin deposit is also known as the initial margin, deposit margin or simply the deposit. if you...

Market capitalization, also known as market cap, is the total value of a publicly traded company's s...

The market depth provides an indication of the liquidity for a trading product. It is presented in t...

A market index, stock index, or stock market index is a method used to track the performance of a gr...

A market maker, sometimes abbreviated to mm, is a company or person who quotes two-sided markets for...

A minor currency pair is a pair of currencies from large, strong economies that do not include the U...

A moving average is a technical analysis indicator that blends specific price points of a financial ...

An order or trade order is a client’s instruction to their brokerage firm to buy or sell a financial...

OTC trading, also known as over-the-counter trading or off exchange trading, describes a transaction...

The term ‘paper trading’ originated from when traders on the stock market wanted to practice trading...

The term pip stands for point in percentage and is the measurement of the smallest price move that a...