A - Z Trading Terms

# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Rules that determine who can trade on a financial platform, like a stock exchange or clearing house. These rules help ensure fairness and protect market integrity.

This indicator attempts to quantify the flow of money into and out of a given stock. In theory, knowing this money/volume flow may help you to recognize an upcoming move in the stock price.

The formal process by which a financial instrument (like a stock or bond) is allowed to be traded on an exchange.

An aggressive order in trading is an order that is designed to execute immediately by taking liquidity from the market. This usually means buying at the ask price or selling at the bid price, rather than waiting for a better price.

A set of rules or instructions a computer follows to make decisions or calculations. In trading, algorithms help analyse data, identify trends, and place orders.

The use of computer programs that follow defined instructions (algorithms) to automatically place trades. Often used to increase speed and efficiency in markets.

An order that must be executed in its entirety or not at all.

A check performed by financial firms to determine if a product or service is suitable for a client’s experience and knowledge.

A service that ensures trade reports from investment firms are published in a standardised and timely way.

A platform that sends trade data to financial regulators on behalf of investment firms.

A trading technique where a trader profits from price differences of the same asset in different markets - buying low in one, selling high in another.

A trading strategy designed to achieve or outperform the bid/ask midpoint price at the time the order is submitted, taking into account the user-assigned level of market risk which defines the pace of the execution, and the user-defined target percent of volume. In the Transaction Cost Analysis, Arrival Price is a performance benchmark that displays the number of basis points that your orders were filled better (or worse) than the midpoint of the National Best Bid and Offer at time each order was submitted.

The ask or ask price is the price that a seller is willing to accept for a security. Ask is the opposite of bid.

The total number of shares of a security that a seller is offering at the ask price. When a buyer wants to purchase a security, he can accept the ask price and buy a quantity up to the ask size amount at that price.

An investment strategy that tries to maximize gains while minimizing risks by adjusting the percentage of each asset in an investment portfolio, according to the investor’s own investment goals, risk tolerance and time frame.

A bond or financial product backed by a pool of assets like mortgages or credit card debt. Investors receive payments based on the underlying asset performance.

A trading session or process where securities are bought and sold at a price determined by supply and demand.

Trading done by computer systems without human input. This includes algorithmic and high-frequency trading.

The weighted average price at which a security has been bought or sold over a specific period or volume.