Account Statement
A periodic summary of account activity, including transactions, fees, charges, and balance.
A
Altcoin
Any cryptocurrency other than Bitcoin.
Annual Return
The yearly percentage return on an investment, including capital gains and income.
Appreciation
An increase in the value of an asset over time.
Arbitrage
Buying and selling the same asset across different markets to profit from price differences.
Ask Price
The lowest price a seller is willing to accept for an instrument; the price at which you buy.
Asset Allocation
How an investor distributes capital across asset classes such as stocks, bonds, and cash.
AUM (Assets Under Management)
The total market value of investments managed on behalf of clients.
Automated Trading
Executing trades through pre-programmed rules without manual intervention.
Averaging Down
Buying more of a declining asset to lower the average cost per unit.
B
Balance Sheet
A financial statement that lists a company's assets, liabilities, and shareholder equity at a point in time.
Bear Market
A prolonged period of falling prices, typically 20% or more from recent highs.
Bid Price
The highest price a buyer is willing to pay for an instrument; the price at which you sell.
Bitcoin
The first and largest cryptocurrency by market capitalization, created in 2009.
Blockchain
A distributed digital ledger that records transactions across many computers in tamper-resistant blocks.
Blue Chip Stocks
Shares of large, established, financially-sound companies with a history of reliable performance.
Bonds
Debt securities issued by governments or companies that pay interest until maturity.
Breakout
A price move beyond a defined support or resistance level, often signaling a new trend.
Broker
A firm or individual that executes trades on behalf of clients in exchange for a commission or spread.
Bull Market
A sustained period of rising prices and strong investor confidence.
C
Candlestick Chart
A price chart where each bar shows the open, high, low, and close of a session.
Capital Gain
The profit made when an asset is sold for more than its purchase price.
Commodities
Raw materials and primary agricultural products such as gold, oil, and wheat that are traded on markets.
Contract for Difference (CFD)
A derivative that lets you trade the price movement of an asset without owning it.
Convertible Bond
A bond that can be exchanged for a predetermined number of the issuing company's shares.
Correlation
A statistical measure of how two assets move in relation to each other, from -1 to +1.
Cost of Capital
The required return necessary to make a capital budgeting project worthwhile.
Credit Risk
The risk that a borrower will fail to repay a debt and cause the lender a financial loss.
Crowdfunding
Raising small amounts of capital from many people, usually online, to fund a project or venture.
Cryptocurrency
A digital or virtual currency secured by cryptography and recorded on a blockchain.
D
Day Trading
Opening and closing positions within the same trading day to capture short-term moves.
Debt-to-Equity Ratio (D/E)
A leverage metric calculated by dividing a company's total liabilities by its shareholder equity.
Default
Failure to meet the legal obligations of a loan, such as missing interest or principal payments.
Depreciation
The reduction in value of an asset over time due to use, wear, or obsolescence.
Derivatives
Financial contracts whose value is derived from an underlying asset, index, or rate.
Digital Wallet
An application or device that stores payment information and cryptographic keys to manage digital assets.
Diversification
Spreading investments across different assets to reduce the impact of any single one on the overall portfolio.
Dividend
A distribution of a portion of a company's earnings paid to shareholders, usually in cash.
Dow Jones Industrial Average (DJIA)
A price-weighted index of 30 large publicly-traded U.S. companies.
Due Diligence
The investigation and analysis carried out before entering a transaction to confirm the facts.
E
Earnings Per Share (EPS)
A company's net profit divided by its outstanding shares, indicating per-share profitability.
Economic Indicator
A piece of data, often macroeconomic, used to assess the health and direction of the economy.
Entry Point
The price level at which a trader opens a position in a market.
Equity
Ownership interest in a company, or the residual value of assets after liabilities are subtracted.
Equity Market
The financial market where company shares are issued and traded; also called the stock market.
Ethereum
A decentralized blockchain platform that supports smart contracts and the cryptocurrency Ether (ETH).
Exchange Rate
The value of one currency expressed in terms of another.
Exchange Traded Fund (ETF)
A pooled investment fund that trades on an exchange like a stock.
Ex-Dividend Date
The cutoff date after which a buyer of a stock is no longer entitled to the next dividend payment.
Expense Ratio
The annual fee charged by a fund, expressed as a percentage of assets under management.
F
Fiat Money
Government-issued currency that isn't backed by a physical commodity such as gold.
Financial Market
Any marketplace where instruments such as equities, bonds, currencies, and derivatives are traded.
Fintech
Technology used to improve, automate, or deliver financial services.
Fixed Income
Investments that pay a set return on a regular schedule, such as bonds and treasury bills.
FOMO (Fear of Missing Out)
The anxiety that drives traders to enter positions based on others' gains rather than analysis.
Forex (Foreign Exchange)
The global market in which national currencies are bought and sold.
Forward Contract
A customized agreement to buy or sell an asset at a specified price on a future date.
Fractional Ownership
Owning a share of an asset together with other investors rather than holding it outright.
Fundamental Analysis
Evaluating an asset's intrinsic value by studying related economic, financial, and qualitative factors.
Futures Contract
A standardized exchange-traded agreement to buy or sell an asset at a set price on a future date.
G
Gann Fans
A technical analysis tool that draws angled trendlines from a key high or low to project support and resistance.
Gap
A visible space on a chart where price opens away from the previous close, with no trades in between.
Gearing Ratio
A financial ratio that compares a company's debt to its equity to measure leverage.
Going Public
The process by which a private company offers shares to the public for the first time, via an IPO.
Good Til Cancelled (GTC)
An order instruction that keeps an order active until the trader cancels it or it fills.
Government Bond
A debt security issued by a national government to fund spending and obligations.
Greenback
A nickname for the U.S. dollar.
Gross Domestic Product (GDP)
The total monetary value of all goods and services produced within a country in a period.
Gross Margin
Revenue minus cost of goods sold, expressed as a percentage of revenue.
Growth Stocks
Shares of companies expected to grow earnings faster than the market average.
H
Hanging Man
A bearish candlestick pattern that appears after an uptrend, with a small body and a long lower wick.
Hard Fork
A radical change to a blockchain's protocol that makes previously invalid blocks valid (or vice versa).
Harmonic Patterns
Geometric price patterns based on Fibonacci ratios used to identify potential reversal points.
Hash Rate
The total computational power used by miners on a proof-of-work blockchain to validate transactions.
Hedge Fund
A pooled investment fund that uses a wide range of strategies, often including leverage and derivatives, to seek returns.
Hedging
Opening an offsetting position to reduce the risk of an existing exposure.
High-Frequency Trading (HFT)
Algorithmic trading that executes very large numbers of orders in fractions of a second.
High-Yield Bond
A bond that offers a higher interest rate to compensate for a higher risk of default; also called a junk bond.
HODL
Crypto slang for holding a position long-term rather than selling, regardless of short-term price moves.
Hot Wallet
A cryptocurrency wallet that is connected to the internet, allowing quick transactions but with higher security risk.
I
Illiquid
Describes an asset that cannot be quickly bought or sold without a significant price discount.
Implied Volatility (IV)
The market's forecast of how much an asset's price will move, derived from option prices.
Income Statement
A financial statement that reports a company's revenues, costs, and profit over a period.
Index Fund
A mutual fund or ETF designed to match the performance of a specific market index.
Inflation
The rate at which the general level of prices rises, eroding purchasing power over time.
Initial Coin Offering (ICO)
A fundraising method in which a new cryptocurrency project sells tokens to early investors.
Initial Public Offering (IPO)
The first sale of a private company's shares to the public, listing on a stock exchange.
Insider Trading
The illegal trading of a public company's stock by people with access to non-public material information.
Interest Rate
The percentage charged or paid for the use of money, typically expressed as an annual rate.
Investment Portfolio
A collection of financial assets held by an individual or institution.
J
Japanese Candlesticks
A charting style developed in Japan where each bar shows the open, high, low, and close of a session.
J-Curve
An economic curve showing that a metric initially worsens after a change before improving substantially.
Jensen's Measure (Jensen's Alpha)
A risk-adjusted performance metric comparing a portfolio's return to its expected return given its beta.
Jobber
An older term for a market maker who buys and sells securities for their own account.
Joint Account
A bank or investment account shared by two or more individuals with equal access.
Joint Venture
A business arrangement where two or more parties combine resources to pursue a specific project or activity.
Juice
Slang for interest charged on a loan or the commission/edge taken by a bookmaker or market maker.
Junior Debt
Debt that is subordinated to senior debt and only repaid after senior obligations in a default.
Junk Bond
A high-yield, high-risk bond rated below investment grade.
Just In Time (JIT)
An inventory strategy that aligns raw-material orders with production schedules to minimize stock on hand.
K
Kappa
An options Greek that measures the sensitivity of an option's price to changes in implied volatility.
Keogh Plan
A U.S. tax-deferred pension plan available to self-employed individuals.
Keynesian Economics
An economic theory advocating active government intervention to manage demand and stabilize the economy.
Key Performance Indicators (KPIs)
Quantifiable metrics used to evaluate the success of an organization or activity.
Key Rate
The benchmark interest rate set by a central bank that influences borrowing costs across the economy.
Kitchen Sink Bond
A bond backed by a mix of mortgage-backed securities and other collateral with varying risk profiles.
Knock-In Option
An option that becomes active only when the underlying asset reaches a specified price.
Knock-Out Option
An option that ceases to exist when the underlying asset reaches a specified price.
Kurtosis
A statistical measure describing the tails of a distribution relative to a normal distribution.
KYC (Know Your Customer)
The process by which a financial institution verifies the identity of its clients to prevent fraud and money laundering.
L
Laddering
An investment strategy of buying bonds or CDs with staggered maturities to manage interest-rate risk.
Leading Indicator
An economic data point that tends to change before the broader economy shifts direction.
Leverage
The use of various financial instruments or borrowed capital to increase the potential return of an investment.
Liability
A financial obligation a company or individual owes to others.
Limit Order
An order to buy below or sell above the current market price; executes only at the specified price or better.
Liquidity
How easily an asset can be bought or sold at a stable price.
Litecoin
An early peer-to-peer cryptocurrency designed as a faster alternative to Bitcoin.
Lock-Up Period
A predetermined timeframe during which investors are not allowed to redeem or sell their shares.
Long Position (Long)
Owning an asset with the expectation that its price will rise.
Lot Size
A standardized unit of trade quantity. In forex, a standard lot is 100,000 units of the base currency.
M
MACD (Moving Average Convergence Divergence)
A momentum indicator showing the relationship between two moving averages of an asset's price.
Margin Call
A broker's demand to deposit more funds when account equity falls below the required margin.
Market Capitalization
The total value of a company's outstanding shares, calculated as share price multiplied by shares outstanding.
Market Maker
A firm or individual that quotes both buy and sell prices for an asset, providing liquidity.
Market Order
An order to buy or sell immediately at the best available price.
Maturity Date
The date on which a bond's principal is repaid or a derivative contract expires.
Mining (Cryptocurrency)
The process of validating transactions and adding them to a blockchain in exchange for new coins.
Monetary Policy
Central-bank actions that manage the money supply and interest rates to influence the economy.
Money Market
The market for short-term debt instruments, typically maturing in less than one year.
Mutual Fund
A pooled investment vehicle managed by a professional that holds a diversified portfolio of assets.
N
Naked Shorting
Selling shares short without first borrowing them; restricted or banned in many markets.
NASDAQ
A U.S. electronic stock exchange known for hosting many technology and growth companies.
Net Asset Value (NAV)
The per-share value of a fund, calculated as total assets minus liabilities divided by shares outstanding.
Net Income
A company's total earnings after all expenses, taxes, and costs have been deducted from revenue.
Node
A computer that connects to a blockchain network and helps validate or relay transactions.
No Dealing Desk (NDD)
A broker model where client orders are passed directly to liquidity providers without intervention.
Nominal Value
The face or stated value of a security, separate from its market value.
Non-Deliverable Forward (NDF)
A cash-settled forward contract on a currency where no physical delivery of the currency occurs.
Nonfarm Payrolls
A monthly U.S. employment report showing job gains and losses outside farming, government, and households.
Non-Performing Loan (NPL)
A loan where the borrower has not made scheduled payments for an extended period.
O
Offer Price
Another name for the ask price - the price at which a seller is willing to sell.
Open Interest
The total number of outstanding derivative contracts that have not yet been settled.
Operating Income
The profit a company earns from its core business operations, before interest and tax.
Operating Margin
Operating income divided by revenue, expressed as a percentage.
Options
Contracts that give the buyer the right, but not the obligation, to buy or sell an asset at a set price by a date.
Order Book
A real-time list of buy and sell orders for an asset, organized by price level.
OTC Markets
Markets where securities are traded directly between two parties, away from a centralized exchange.
Outperform
An analyst rating indicating a security is expected to do better than the market or its peers.
Overbought
A condition where an asset has risen sharply and may be due for a pullback.
Over-the-Counter (OTC)
Trading that takes place directly between two parties without an exchange.
P
Par Value
The face value of a bond or stock as set by the issuer, separate from its market value.
Penny Stocks
Shares of small companies that trade at very low prices, typically below $5.
Pip (Percentage in Point)
The smallest price increment in a forex pair, usually the fourth decimal place.
Portfolio
A collection of investments held by an individual or institution.
Position Trading
A long-term strategy where positions are held for weeks, months, or years.
Price-Earnings Ratio (P/E Ratio)
A valuation metric calculated as share price divided by earnings per share.
Private Equity
Investment in private companies or buyouts of public companies, typically with a long-term horizon.
Profit Margin
Net profit divided by revenue, expressed as a percentage.
Public Company
A company whose shares are traded on a public stock exchange.
Put Option
A contract giving the buyer the right to sell an underlying asset at a set price within a set period.
Q
Q Ratio (Tobin's Q Ratio)
A ratio of a firm's market value to the replacement cost of its assets, used to gauge over- or under-valuation.
Quantitative Analysis
Using mathematical and statistical modeling to evaluate financial assets.
Quantitative Trading
Trading strategies that rely on mathematical models and computer-driven analysis to identify opportunities.
Quarterly Earnings Report
A company's financial report released every three months covering revenue, earnings, and other key metrics.
Quasi-Public Corporation
A company that operates in the private sector but has government links, such as the U.S. Postal Service.
Quick Ratio
A liquidity ratio measuring a company's ability to cover short-term liabilities with its most liquid assets.
Quiet Period
An SEC-mandated window before an IPO during which company executives are restricted in what they can say publicly.
Quote
The most recent price at which an asset was traded, or the current bid/ask available.
Quote Currency
The second currency in a forex pair; the amount required to buy one unit of the base currency.
Quoted Currency
Another name for the quote currency in a forex pair.
R
Real Estate Investment Trust (REIT)
A company that owns or finances income-producing real estate, and trades like a stock.
Rebalancing
Adjusting the weights of assets in a portfolio to return to a target allocation.
Recession
A significant decline in economic activity, typically defined as two consecutive quarters of negative GDP growth.
Relative Strength Index (RSI)
A momentum oscillator measuring the speed and change of price moves on a 0-100 scale.
Resistance (Resistance Level)
A price level where selling pressure tends to overwhelm buying, halting an uptrend.
Retail Investor
An individual investor trading their own money, as opposed to an institution.
Return On Equity (ROE)
Net income divided by shareholder equity, expressed as a percentage.
Return On Investment (ROI)
A performance measure showing gain or loss on an investment relative to its cost.
Ripple
A blockchain network and the cryptocurrency XRP, focused on fast cross-border payments.
Risk Management
The process of identifying, assessing, and controlling threats to capital and returns.
S
Securities and Exchange Commission (SEC)
The U.S. federal agency that regulates securities markets and protects investors.
Securitization
Pooling financial assets and packaging them into tradable securities, such as mortgage-backed securities.
Shareholder Equity
A company's net worth - total assets minus total liabilities, owned by shareholders.
Short Selling
Selling borrowed shares with the expectation of buying them back later at a lower price.
Spot Price
The current market price for immediate delivery of an asset.
Spread
The difference between the bid and the ask price of a security or asset.
Stock
A security representing partial ownership of a company.
Stop-Loss Order
An order that automatically closes a position when the price reaches a specified level to limit losses.
Supply Chain
The network of organizations, people, and activities involved in producing and delivering a product.
Swap
A derivative in which two parties exchange cash flows or other financial instruments over a set period.
T
Takeover
The acquisition of one company by another, either friendly or hostile.
Tax Lien
A legal claim by a government on property when the owner has failed to pay taxes owed.
Technical Analysis
Forecasting price moves by analyzing past market data, primarily price and volume charts.
Ticker Symbol
A short identifier representing a publicly-traded security on a stock exchange.
Time Value of Money (TVM)
The concept that money available today is worth more than the same amount in the future due to its earning potential.
Total Return
The full return on an investment including capital gains and income such as dividends or interest.
Trading Volume
The number of shares or contracts traded in a security or market during a period.
Treasury Bill (T-Bill)
A short-term debt instrument issued by the U.S. Treasury, typically maturing within a year.
Triple Witching
The simultaneous expiration of stock-index futures, stock-index options, and stock options, occurring four times a year.
Turnover Ratio
A measure of how frequently assets in a portfolio are bought and sold within a year.
U
Underlying Asset
The financial instrument on which a derivative's value is based.
Underlying Security
The security on which a derivative or related instrument is built.
Underperform
An analyst rating indicating a security is expected to do worse than the market or its peers.
Underwriting
The process by which an investment bank assesses risk and arranges the sale of securities to investors.
Unemployment Rate
The percentage of the labor force that is jobless and actively seeking work.
Unicorn
A privately-held startup company valued at over $1 billion.
Unit Trust
An open-ended investment fund structured as a trust that holds a portfolio of assets on behalf of investors.
Unlevered Beta (Asset Beta)
A measure of a company's market risk excluding the effects of its debt.
Up-Market Cap
A measure of how a portfolio performs relative to the market during up-trending periods.
Upside/Downside Ratio
A ratio comparing potential profit to potential loss on a trade or investment.
V
Value-Added Tax (VAT)
A consumption tax placed on a product whenever value is added at each stage of the supply chain.
Value Investing
An investment strategy that involves picking stocks that appear to be trading for less than their intrinsic value.
Variable Rate
An interest rate that changes over time, often tied to a benchmark such as the prime rate.
Vega
An options Greek that measures the sensitivity of an option's price to changes in implied volatility.
Venture Capital
Financing provided to early-stage, high-potential startups in exchange for equity.
Vesting
The process by which an employee earns full ownership of employer-granted assets, such as stock options, over time.
Virtual Currency
A digital representation of value that operates on its own network, distinct from fiat currency.
VIX (Volatility Index)
A real-time index reflecting the market's expectation of 30-day forward volatility on the S&P 500.
Volatility
A statistical measure of the dispersion of returns; higher volatility means larger price swings.
Volume
The total number of units of a security traded in a given period.
W
Warrant
A security that gives the holder the right to buy a company's stock at a specific price before expiration.
Wash-Sale Rule
A U.S. tax rule preventing a loss deduction if a similar security is repurchased within 30 days.
Weighted Average Cost of Capital (WACC)
A firm's average cost of financing, weighted by the proportion of debt and equity in its capital structure.
White Paper
An authoritative document providing detailed information about a project, often a crypto or business proposal.
Wholesale Price Index (WPI)
An index measuring price changes in goods sold in bulk between businesses, before consumer-level retail.
Wire Transfer
An electronic transfer of money from one bank account to another, often between banks or countries.
Withholding Tax
Income tax withheld by an employer or other payer and remitted directly to the government.
Working Capital
Current assets minus current liabilities, a measure of a company's short-term financial health.
Write-Down
A reduction in the book value of an asset because its fair market value has fallen.
Write-Off
An accounting action that recognizes the full loss of an asset's value, removing it from the books.
X
XAF (Central African CFA franc)
The currency used by six countries in Central Africa, pegged to the euro.
XBB (iShares Broad Investment-Grade Bond ETF)
An ETF that tracks a broad index of investment-grade Canadian bonds.
X-Dividend
Trading without the right to the most recently declared dividend; also written ex-dividend.
XDR (Special Drawing Rights)
An international reserve asset created by the International Monetary Fund (IMF).
X-Efficiency
The level of efficiency a firm maintains given imperfect competition, where motivation and management affect output.
Xetra
A German electronic stock-trading system operated by the Deutsche Börse.
XIRR (Extended Internal Rate of Return)
A modified IRR calculation for cash flows that occur at irregular intervals.
X-Mark Signature
A signature consisting of an X mark, used by people who are unable to sign their full name.
XRP
The native digital asset of the Ripple payments network, used to facilitate cross-border transactions.
XRT (Excess Return)
Returns earned on an investment above the risk-free rate or a benchmark.
Y
Yankee Bond Market
The U.S. market for bonds issued by foreign entities in U.S. dollars.
Yankee CD
A U.S.-dollar-denominated certificate of deposit issued by a foreign bank's U.S. branch.
Yard
Trader slang for one billion units of a currency.
Yield
The income return on an investment, expressed as a percentage.
Yield Curve
A line plotting the yields of bonds with equal credit quality but different maturities.
Yield on Cost (YOC)
Annual dividend divided by the original cost of the investment, expressed as a percentage.
Yield Spread
The difference in yields between two debt instruments of differing credit quality or maturity.
Yield to Maturity (YTM)
The total return expected on a bond if held until it matures.
YoY (Year over Year)
A method of comparing a metric in one period to the same period a year earlier.
Yuan (CNY)
The base unit of currency in mainland China.
Z
Zakat
An obligatory annual charitable contribution in Islam, typically 2.5% of qualifying wealth.
ZAR (South African Rand)
The official currency of South Africa.
Zero-Beta Portfolio
A portfolio constructed to have zero systematic risk relative to a benchmark.
Zero-Coupon Bond
A bond that pays no interest but is issued at a discount to its face value.
Zeta Model
A statistical model used to predict the likelihood of corporate bankruptcy.
Zig Zag Indicator
A technical indicator that filters out minor price changes to highlight broader trend reversals.
Zombie Bank
An insolvent financial institution that continues to operate, often kept alive by government support.
Zombie Company
A heavily-indebted company that barely covers its interest costs and cannot grow.
Z-Score
A statistical measurement that describes a value's relationship to the mean of a group of values.
Z-Tranche
The last tranche in a collateralized mortgage obligation, receiving payments only after other tranches are paid.