Trading Glossary

Official action normally occasioned by a change either in the internal economic policies to correct a payment imbalance or in the official currency rate.

Traders and/or price action are acting with conviction.

A financial professional who has expertise in evaluating investments and puts together buy, sell and hold recommendations for clients.

A product is said to ‘appreciate’ when it strengthens in price in response to market demand.

The simultaneous purchase or sale of a financial product in order to take advantage of small price differentials between markets.

The value of a country’s exports minus its imports.

A type of chart which consists of four significant points: the high and the low prices, which form the vertical bar; the opening price, which is marked with a horizontal line to the left of the bar; and the closing price, which is marked with a horizontal line to the right of the bar.

A certain price of great importance included in the structure of a Barrier Option. If a Barrier Level price is reached, the terms of a specific Barrier Option call for a series of events to occur.

The GBP/USD (Great British Pound/U.S. Dollar) pair. Cable earned its nickname because the rate was originally transmitted to the US via a transatlantic cable beginning in the mid 1800s when the GBP was the currency of international trade.

The Canadian dollar, also known as Loonie or Funds.

Speculators who take positions in commodities and then liquidate those positions prior to the close of the same trading day.

A term that denotes a trade done at the current market price. It is a live trade as opposed to an order.

European Central Bank, the central bank for the countries using the euro.

The dollar level of new orders for both durable and nondurable goods. This report is more in depth than the durable goods report which is released earlier in the month.

It is commonly accepted that gold moves in the opposite direction of the US dollar. The long-term correlation coefficient is largely negative, but shorter-term correlations are less reliable.