Glossary
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A
Account Balance
The total amount of funds in your trading account.
Algos
Short for algorithmic trading. These are increasingly popular automated trading systems that follow certain rules (algorithms) in order to initiate and close out trades.
Ascending Triangle
A technical analysis term. This is a triangularly shaped chart formation that often appears during an uptrend and indicates a probable continuation.
Ask Price
The price at which the broker/trading platform is willing to sell and therefore the price at which the client would buy. It is also known as the “offer price” and the “right hand side price”.
At Best
Refers to a market order for executing a trade. It means buy (or sell) the given amount at the current market, at the best rate possible.
Aussie
Market jargon for the Australian dollar
AUD
The Australian dollar or Aussie
Average Hourly Earnings
Average hourly earnings (AHE) is a fundamental indicator of labour cost inflation and of the tightness of labour markets. It is perceived as a leader to labour cost inflation and high readings tend to be inflationary and thus tend to be bearish for equity and well as bond markets. See the Fundamental Analysis section for more information.
B
Balance of Payments
As an economic indicator, the BOP is effectively a record of all transactions made between one particular country and all other countries during a specified period of time. BOP compares the dollar difference of the amount of exports and imports, including all financial exports and imports. It is a good indicator of the general economic and thus political stability of a country.
Balance of Trade
This is a subset of the BOP above (also its largest component), and is effectively the difference between a country’s imports and exports. Running a trade deficit is not necessarily a bad thing on its own, as it can be a helpful inflation cap under periods of strong expansion, when a country needs to import more goods to meet domestic demand, and therefore keep prices in check.
Band (trading)
This usually refers to the allowed trading range of a currency exchange rate. This range can be large in the case of partially floating currencies, or very small in the case of pegged currencies. This is usually controlled by the country’s central bank. Another meaning, in technical analysis terms, is the observed range of a tradable instrument on a chart.
Bandit
A market term for a short term player who trades aggressively and in large sizes, often putting counterparties in competition, causing them to lose money when trying to cover the position. It can denote High Frequency algorithmic trading systems.
Bank of International Settlements/BIS
Its mission is to serve Central Banks in their pursuit of monetary and financial stability, to foster international cooperation in those areas and to act as a bank for Central Banks.
BoC
The central Bank of Canada
BoE
The Bank of England
BoJ
The Bank of Japan
Base Currency
This is the first currency quoted in a currency pair. The quote itself represents how many units of the “term” or “quote” currency are needed to buy one unit of the base currency. For example in a currency quote of GBP/USD = 1.5500, the base currency is GBP. The rate reflects how many USD (the term ccy) 1 GBP buys.
Basis Point
This is a unit equal to 1% of 1% or equal to 0.01%.
Basket of Currencies
A selected group of currencies, each has a weighting which together form a basket whose value can be indexed and traded more easily and with better liquidity than each individual component. Moreover, currency baskets of certain regions (e.g. Latin America) have been popular with investors as they remove individual currency risks and volatility.
Bear (market)
A market condition in which the prices of securities are falling, and widespread pessimism causes the negative sentiment to be self-sustaining. Usually, a downturn of 20% or more in multiple broad market indexes, such as the Dow Jones Industrial Average (DJIA) or Standard & Poor's 500 Index (S&P 500), over at least a two-month period, is considered an entry into a bear market.
Bearish
A negative outlook on an asset, also described as “dovish”. The opposite term is “bullish”.
Bearish Channel
A technical analysis term which denotes a down-trending price action, visually contained within two parallel lines (the channel).
Bearish Divergence
Another technical analysis term that denotes the divergence of the price action vs. a technical indicator called a Moving Average Convergence Divergence (MACD) in a rising price environment. A bearish divergence usually indicates a change of direction lower. See our Technical Analysis section for more information.
Beige Book
The Beige Book, more formally called the Summary of Commentary on Current Economic Conditions, is a report published by the United States Federal Reserve Board eight times a year. The report is published in advance of FED meetings. Each report is a gathering of anecdotal information on current economic conditions by each Federal Reserve Bank in its district from Bank and Branch directors and interviews with key business contacts, economists, market experts, and others.
Bernanke
Ben Bernanke is the current Chairman of the US Federal Reserve.
Betty
A colloquial trader term for the currency pair GBP/USD.
Big Figure
As currencies are usually quoted to the fourth decimal point, it is a market jargon term to denote the value up to the second decimal. For example in a EUR/USD quote of 1.4386, the Big Figure is 1.43.
Bollinger Band
This is a technical analysis term. It denotes the band which can be drawn by plotting lines that are two standard deviations either side of a standard moving average plot in a chart. These are a good volatility indicator and sometimes also act as support or resistance points in the price action.
Building Permits
This refers to the monthly Building Permit report that is published by the US census bureau on the 18th work day of every month. It is a significant release on the monthly economic calendar. See our Fundamental Analysis section for more information.
Bullish
An optimistic outlook on a specific market (that prices will rise). The opposite term is “bearish”.
Buy Order
What it says on the tin - it is a customer instruction to buy a certain currency vs. another at a certain market level.
C
Cable
The market term for the currency pair GBP/USD
CAD
The Canadian dollar or Loonie
CHF
The Swiss franc or Swissy
CZK
The Czech koruna
Candlestick
A price chart that displays the high, low, open, and close for a security over a specified period of time. See our Technical Analysis section for more information.
Capacity Utilisation
Refers to the extent to which an enterprise or a nation actually uses its installed productive capacity. Thus, it refers to the relationship between actual output that 'is' produced with the installed equipment and the potential output which 'could' be produced if used at full capacity.
Carry Trade
In currency terms this refers to a trading strategy in which an investor sells a certain currency with a relatively low interest rate and uses the funds to purchase a different currency yielding a higher interest rate.
Cash Settlement
This usually refers to a settlement method used with many futures and options contracts, where instead of taking delivery of the underlying asset, an investor settles the difference of its agreed price at inception to its current market price with cash.
CB
Central Bank
Commodities and Futures Trading Commission/CFTC
The US Commodities and Futures Trading Commission - essentially the US regulator for Futures and Options.
Channel
A Technical Analysis Pattern that looks like a channel when drawn over certain price action. The boundaries of the channel can act as support and resistance points.
Consolidation
A Technical Analysis term that describes a price action retracement or general fall from recent highs. A consolidation is a short term sell-off which keeps the initial up-trend intact.
Consumer Confidence
Consumer confidence is an economic indicator which measures the degree of optimism that consumers feel about the overall state of the economy and their personal financial situation. How confident people feel about stability of their incomes determines their spending activity and therefore serves as one of the key indicators for the overall shape of the economy
Consumer Price Index/CPI
The generic measure of consumer inflation. See our Fundamental Analysis section for more information.
Counterparty Risk
The risk involved in a contract that the counterparty will not live up to its contractual obligations. Counterparty risk as a risk to both parties and should be considered when evaluating a contract. In most financial contracts, counterparty risk is also known as "default risk".
Cover
This is the market rate that a counterparty or broker offsets a customer trade with, thus earning the difference, called the Spread, as commission for the trade.
Cross Rate
Refers to any currency pair that does not involve the USD or one that is an unusual currency pair. For example, when one wants to buy AUD/SEK, the market trader needs to buy the AUD with USD and then buy the USD back with SEK.
Current Balance
This is the Account Balance in the WM Trader platform inclusive of the profit and loss of all open positions.
Current Margin
The percentage of margin amount needed for all open positions divided by Current Balance. It is also known as Margin Utilisation %.
D
Day Trader
Someone who trades with a short term view. It often means that the person does not keep open positions after the market close of each day.
Deal Date
The date of the trade.
Dealer
Refers to the trader or market maker whose main job is to provide liquidity and prices for the markets they quote.
Default Risk
See Counterparty Risk.
Delivery Date
Also known as the Settlement Date. It is the date on which the underlying asset of a futures or forward contract is to be delivered to the holder.
Derivative
Any security whose price is dependent on, or derived from, one or more underlying assets. The derivative itself is merely a contract between two or more parties. Its value is determined by fluctuations in the underlying asset. The most common underlying assets include stocks, bonds, commodities, currencies, interest rates and market indexes. Most derivatives are characterized by high leverage.
Devaluation
Devaluation is a reduction in the value of a currency with respect to those goods, services or other monetary units with which that currency can be exchanged. More specifically, it implies an official lowering of the value of a country's currency within a fixed exchange rate system - the monetary authority formally sets a new fixed rate with respect to a foreign reference currency. In contrast, depreciation is used for the unofficial decrease in the exchange rate in a floating exchange rate system. The opposite of devaluation is revaluation.
Divergence
See Bearish Divergence.
Doji
A Technical Analysis candlestick pattern commonly observed in a short candlestick (small range) whose opening and closing price is the same. It is an indicator of market indecision and possible reversal.
Double Bottom/Top
A Technical Analysis Pattern that looks like the letter W or M respectively and is a good indicator of market reversal.
Durable Goods Orders
An economic indicator released monthly by the Bureau of Census that reflects new orders placed with domestic manufacturers for delivery of factory hard goods (durable goods) in the near term or future.
Dovish
A negative outlook on an asset, also described as “bearish”. The opposite term is “hawkish”.
E
European Central Bank/ECB
The ECB is the central bank responsible for the monetary system of the European Union (EU) and the euro. The Bank was formed in Germany in June 1998 and works with the other national banks of each of the EU members to formulate monetary policy that helps maintain price stability in the European Union.
European Economic and Monetary Union/EMU
The successor to the European Monetary System (see below); the combination of European Union member states into a cohesive economic system, most notably represented with the adoption of the euro as the national currency of participating members.
European Monetary System/EMS
The predecessor to the EMU (see above); arranged in 1979 between several European countries to link their currencies in an attempt to stabilize the exchange rate.
Execution
The process of executing a trade or an order at a specific market rate.
Euro/EUR
The common European currency
Exotic
Usually a reference to a currency that is very thinly traded in the market; an option (or other derivative structure) that is not common or that is not priced in a simple manner. For example, all barrier options are “exotic”.
Exposure
The risk of losses in the transaction due to exchange rate moves.
F
Federal Open Market Committee/FOMC
The US FOMC is the branch of the Federal Reserve Board that determines the direction of monetary policy. It is composed of the board of governors, which has seven members, and five reserve bank presidents. The president of the Federal Reserve Bank of New York serves continuously, while the presidents of the other reserve banks rotate their service of one-year terms. The FOMC meets eight times per year to set key interest rates, such as the discount rate, and to decide whether to increase or decrease the money supply, which the Fed does by buying and selling government securities. For example, to tighten the money supply, or decrease the amount of money available in the banking system, the Fed sells government securities
Federal Reserve/Fed
The US Federal Reserve, effectively the US Central Bank.
Federal Reserve Board/FRB
The US Federal Reserve Board of governors.
Fibonacci Retracement
In Technical Analysis this refers to areas of support or resistance. It is the potential retracement of a financial asset's original move in price. Fibonacci retracements use horizontal lines to indicate areas of support or resistance at the key Fibonacci levels before it continues in the original direction. These levels are created by drawing a trend line between two extreme points and then dividing the vertical distance by the key Fibonacci ratios of 23.6%, 38.2%, 50%, 61.8% and 100%.
Fill (price)
The price achieved in a given order to buy or sell a security or currency. Due to market liquidity, especially regarding stop orders, a fill can be at a different level to the original order.
Fiscal policy
In economics, fiscal policy is the use of government expenditure and taxation to influence the economy. Fiscal policy can be contrasted with the other main type of macroeconomic policy, monetary policy, which attempts to stabilize the economy by controlling interest rates and the money supply. The two main instruments of fiscal policy are government expenditure and taxation.
Fix
The setting of a daily exchange rate in controlled currencies by a Central Bank. It can also be the daily publication of exchange rates at regular intervals during the trading week. Examples of well-known daily fixes include the midday ECB fix and the 4pm GMT WM/Reuters fix. Lastly, a fix is also a daily currency rate fix in Emerging Market currencies that trade on a Non Deliverable Forward (NDF) basis.
Forward
A forward is a contract obligating one party to buy and another other party to sell a financial instrument, equity, commodity or currency at a specific future date.
Forward points
In currency terms, these points (also known as forward adjustment points) reflect the price difference of a forward to its Spot equivalent in order to account for the interest rate differential of the two traded currencies.
Fundamental Analysis
The study of how economic and political factors affect global supply and demand and market prices. See more on our Fundamental Analysis section.
Futures
A financial contract that obligates the buyer to purchase an asset, or the seller to sell an asset (such as a physical commodity or a financial instrument), for a predetermined price at a future date. Futures contracts detail the quality and quantity of the underlying asset; they are standardized to facilitate trading on a futures exchange. Some futures contracts may call for physical delivery of the asset, while others are settled in cash.
G
GBP
The Pound sterling
Good Till Cancelled/GTC
The duration of a market order in a system.
Gross Domestic Product/GDP
The monetary value of all the finished goods and services produced within a country's borders in a specific time period, though GDP is usually calculated on an annual basis. It includes all of private and public consumption, government outlays, investments and exports less imports that occur within a defined territory.
H
Hammer
A Technical Analysis candlestick pattern that indicates a change in trend, usually from negative to positive (a bullish pattern). See our Technical Analysis section for more information.
Hawkish
An aggressive stance or viewpoint; the same as “bullish”. It is the opposite of “dovish”.
Head and Shoulders
A chart formation formed by three market rallies and subsequent retracements, the second of which is the ultimate market high. It can regularly indicate a market reversal lower.
Hedge
A trade that aims to reduce the risk of adverse price movements in an investment or a core trade.
HUF
The Hungarian forint
High/Low
The high and low levels of an instrument over a set time-frame, usually daily.
I
Industrial Production Index/IPI
It is an economic indicator that is released monthly by the Federal Reserve Board. The IPI measures the amount of output from the manufacturing, mining, electric and gas industries. The reference year for the index is 2002 and a level of 100.
Inflation
It is a key economic indicator. In broad terms it is the rate at which the general level of prices for goods and services is rising, and, at which purchasing power is falling. The major mandate of central banks globally, is to protect the economy from severe inflation, along with severe deflation, in an attempt to keep the excessive growth of prices to a minimum.
International Monetary Fund/IMF
The IMF is an institution that was created in 1944 for the purpose of promoting global monetary and exchange stability; facilitating the expansion and balanced growth of international trade and assisting in the establishment of a multilateral system of payments for current transactions.
International Monetary Market/IMM (Immies)
One of three divisions of the Chicago Mercantile Exchange (CME) that deals with the trading of currency and interest rate futures and options. There are four key dates around the year, the third Wednesday of March, June, September and December respectively called the IMM Dates. They are the dates when most currency futures settle and are therefore very busy days for the currency markets.
Intervention
A reference to a country’s central bank buying or selling their home currency in order to achieve or protect a certain exchange rate that is deemed beneficial to that country.
Institute of Supply Management/ISM
The US Institute of Supply Management releases two monthly pieces of fundamental economic data: the Manufacturing Index and the non-Manufacturing Index which the market look upon as a gauge of economic conditions. See our Fundamental Analysis section for more information.
J
JPY
The Japanese yen
K
Kiwi
Market jargon for the New Zealand dollar or NZD
L
Leading Indicators
It can have two meanings in the FX trading context. First, it refers to economic indicators or data that change before the economy, thereby leading the change. Second, it refers to technical analysis tools that usually lead the price action, like the RSI or MACD. See our Technical Analysis section for more information.
Leverage
Generally leverage refers to the use of various financial instruments (like derivatives) or borrowing to increase returns in one’s own capital. In margin trading terms, the margin used for any one position is effectively Leverage, as the notional position can be many times the amount of capital on account.
Limit Order
An order to buy or sell a set amount of currency at a specified price (or better if available). Limit orders also allow an investor to limit the length of time an order can be outstanding before being cancelled.
London Interbank Offer Rate/LIBOR
LIBOR is the rate at which banks can borrow funds, in marketable size, from other banks in the London interbank market. It is fixed on a daily basis by the British Bankers' Association and is derived from a filtered average of the world's most creditworthy banks' interbank deposit rates for larger loans with maturities between overnight and one full year. It is the world's most widely used benchmark for short-term interest rates.
Long
Also called a Long Position is the buying of a security or currency with the expectation that the asset will rise in value.
Loonie
Market jargon for the Canadian dollar or CAD
Lot
In currency terms, this is equivalent to a notional position of 100,000 units of base currency. A mini-lot is 10,000 units.
M
Moving Average Convergence Divergence/MACD
It is used as a Technical Analysis tool that shows the relationship between two moving averages. It is a trend-following indicator. Read more about them in our Technical Analysis section.
Margin
It refers to the amount of funds required to be in your account in order to maintain all open positions. WM Trader offers trading at 50:1, thus the margin amount needed on the minimum position (mini lot) of $10,000 is $200.
Margin Available
This is equal to the Current Balance in the account minus the Margin Used (see below).
Margin Used
The total margin needed for all open positions is shown in the trading platform dashboard as Margin Used.
Margin Utilisation
See Current Margin.
(Low) Margin Warning
In the WM Trader platform, this is equal to 20% of the Available Margin. It effectively indicates the level of available margin at which a Low Margin Notification will be sent.
Mark to Market/MTM
A term used across the financial industry to measure the value of assets according to their latest market valuation. The currency markets are continuous and liquid so mark to market happens on a live basis and is indicated by the ever fluctuating Unrealised Profit & Loss tab in the WM Trader platform.
Market Order
An order to buy or sell an investment immediately at the best available current price.
Momentum
Momentum is defined as the rate of acceleration of a security’s (or currency’s) price or volume. High values of momentum indicate strength of the current trend and further continuation.
Moving Average/MA
An indicator frequently used in technical analysis which shows the average value of a security's price over a set period. Moving averages are generally used to measure momentum and define areas of possible support and resistance.
N
Net Position
In the context of currency trading, this is the overall position by currency that an investor is long or short. For example someone could be 2 lots long in GBP/USD and 3 lots long in USD/CHF. The net position in USD is close to zero.
Noise
A term used to describe the effect of price and volume fluctuations in the market that can confuse one's interpretation of market direction.
NOK
The Norwegian krone
NZD
The New Zealand dollar or Kiwi
O
Offer
This is the side of the price where the client buys the base currency and the broker sells.
Office of National Statistics/ONS
The ONS is the organisation responsible for collecting and publishing official statistics about the UK's society and economy, and also carries out the ten-yearly census for England and Wales.
One Cancels the Other/ OCO (order)
This is a market order type. It means that if one part of the order is executed, then the other part cancels out. It is usually used as a combined Take Profit and Stop Loss order for a given open position.
Open Position
Any position that is currently open in the market.
Over the Counter/OTC
A security traded in some context other than on a formal exchange. It also refers to debt securities and other financial instruments such as derivatives and currencies which are traded through a dealer network.
P
Parity
In the Foreign Exchange market, parity refers to any currency pair whose exchange rate is equal to 1, in other words of par value.
Pip
A reference to the last decimal point of any currency pair quotation, usually the fourth.
Producer Price Index/PPI
A monthly economic data release indicative of inflation at the production rather than the consumption level. See our Fundamental Analysis section for more information.
Profit Taking
The action of closing or partially closing an open market position that is in profit, thereby crystallising a profit.
Purchasing Managers Index/PMI
It is an indicator of the economic health of the manufacturing sector. The PMI index is based on five major indicators: new orders, inventory levels, production, supplier deliveries and the employment environment.
Purchasing Power Parity/PPP
An economic theory that estimates the amount of adjustment needed on the exchange rate between countries in order for the exchange to be equivalent to each currency's purchasing power. In other words, the exchange rate adjusts so that an identical good in two different countries has the same price when expressed in the same currency. PPP theory is often used by economists and strategists to estimate the fair value or the long term mean reversion level of a given currency pair.
Q
Quote
A price quote which always includes both the bid and the offer side of the price, for example a EUR/USD quote of 1.3670/72.
R
Rally
Defined as a period of sustained increases in the price of a currency pair (or any other asset).
Range
The upper and lower levels of the price action of a given currency pair over a given time frame.
Relative Strength Index/RSI
It is a Technical Analysis indicator that compares the magnitude of recent gains to recent losses in an attempt to determine overbought and oversold conditions of an asset. An asset is deemed to be overbought once the RSI approaches the 70 level, meaning that it may be getting overvalued and is a good candidate for a pullback. Likewise, if the RSI approaches 30, it is an indication that the asset may be getting oversold and therefore likely to become undervalued.
Reserve Bank of Australia/RBA
The Australian central bank responsible for setting rates and price stability.
RBNZ
The Reserve Bank of New Zealand
Reserve Currency
A foreign currency held by central banks and other major financial institutions as a means to pay off international debt obligations, or to influence their domestic exchange rate. A large percentage of commodities, such as gold and oil, are usually priced in the reserve currency, causing other countries to hold this currency to pay for these goods. The largest reserve currency today is and remains the USD. EUR, GBP, JPY and CHF are also widely used as reserves.
Resistance
Mostly used as a technical analysis term, it is a price level which the market cannot exceed for a certain period of time, thus providing a level of price “resistance”. Read our Technical Analysis section for more information.
Retail Price Index/RPI
The RPI is an index that gathers the prices of several retail goods in outlets across the US in order to give an indication of the rate of inflation. This is similar to the PPI and CPI monthly reports.
Retail Sales
An aggregated measure of the sales of retail goods over a stated time period, typically based on a data sampling that is extrapolated to model an entire country. Read more in our Fundamental Analysis section.
Risk Premium
The return in excess of the risk-free rate of return that an investment is expected to yield. An asset's risk premium is a form of compensation for investors who tolerate the extra risk - compared to that of a risk-free asset - in a given investment.
Risk On/Off
A relatively recent market term referring to the cross-correlation of most assets during good market days where risk is “on”, as in the market takes into account risk appetite and bad market days where the opposite is in effect. In currency terms, “risk on” days have seen the USD experiencing losses, whereas higher yielding currencies from the commodity bloc like AUD, NZD and CAD or emerging market currencies such as BRL, RUB or ZAR have registered gains with again, the opposite effect in “risk off” days.
Rollover
In currency terms, a rollover is the automatic overnight move of an open spot position to the next available spot date so that the position remains open in spot terms. This process incurs a small cost or a credit to the position. This arises from the difference in interest rates between the two currencies underlying a transaction. Sometimes investors can earn a credit if they are purchasing the currency with the higher of the two interest rates and vice versa. The higher the interest rate difference between the two currencies in the traded pair, the higher the daily rollover cost or credit.
S
Short
Also called a Short Position. It is the selling of a security or currency with the expectation that the asset will decrease in value.
SEK
The Swedish krona
Settlement
The date by which an executed security trade must be settled. That is, the date by which a buyer must pay for the securities delivered by the seller. Spot settlement in FX is a settlement of T+2 with few exceptions like USD/CAD which is T+1.n In margin trading terms, the open positions are never settled, instead the spot positions are rolled over daily into the next available spot date until they are closed down.
SGD
The Singapore dollar
Slippage
The difference between the expected price of a trade, and the price the trade actually executes at. Slippage often occurs during periods of higher volatility, when market orders are used, and also when large orders are executed when there may not be enough interest at the desired price level to maintain the expected price of trade. In FX slippage occurs usually in large stop loss orders under thin market conditions or when the markets open at a significantly different level to the previous close.
Sniper
This is market jargon for a trader or a trading system that trades frequently and in large size, often causing losses to the market maker.
Spot
The most common value for FX settlement, which is T+2 (see Trade Date, below, for more information).
Spot Next
The day after Spot value.
Spread
The price difference between the bid and ask price of an asset.
Staglation
A word made up from stagnation and inflation; describes a situation in which the inflation rate is high and the economic growth rate is low. It’s effectively the worst of both worlds.
Stop
An order to exit an existing position at a specified rate.
Support
Mostly used as a Technical Analysis term, it is a price level which the market cannot fall through for a certain period of time, thus providing a level of price “support”. The opposite term is “resistance”. Read our Technical Analysis section for more information.
Swissy
Market jargon for the Swiss franc or CHF
T
TA
Technical Analysis. See our Learning Zone for more information.
Thin Market
When market conditions are illiquid, i.e. there are not many bids and offers in the market and amounts traded are smaller than usual.
Trade Date
The date on which a trade is made. Various delivery and value dates often use the trade date as a benchmark, adding the days over for the delivery. For example most spot FX currency pairs are delivered 2 days after the trade date, otherwise known as T+2.
U
Unemployment Rate
This is the number of unemployed persons divided by the number of people in the labour force and is often cited as a measure of the health of the economy.
Unrealised Profit and Loss
This refers to all profits or losses incurred by positions that are still open to the market. The mark to market of those happens in real time and is displayed in the WM Trader account dashboard.
V
Value date
A future date used in determining the value of a product that fluctuates in price. In spot currency terms, this is T+2 (see Trade Date for more information).
Volatility
Volatility refers to the amount of uncertainty or risk about the size of changes in a security's value. A higher volatility means that a security's value can potentially be spread out over a larger range of values. This means that the price of the security can change dramatically over a short time period in either direction. A lower volatility means that a security's value does not fluctuate dramatically, but changes in value at a steady pace over a period of time.
Volume
Volume is the total amount of notional that is transacted through the market over a given timeframe.
W
X
Y
Yard
Market jargon for an amount equal to 1 billion.
Yield
Yield is defined as the percentage return on an investment based on the investment’s initial cost or price of entry.
Z
Zentrum für Europäische Wirtschaftsforschung/ZEW
The ZEW is a monthly economic survey from Germany. It is more accurately called the ZEW Economic Sentiment is an amalgamation of the sentiments of approximately 350 economists and analysts regarding the German economic future over the next six months.