Glossary of Financial Terms

A trading platform that provides a detailed visualization of the order book, market depth, and price action, offering traders real-time insights into liquidity, supply and demand, and potential price movements using heat maps and volume analysis.

The price or level at which total revenues equal total costs, resulting in neither profit nor loss.

When an asset's price moves decisively above a resistance level or below a support level, often signaling the beginning of a new trend or increased momentum in the direction of the breakout.

A licensed individual or firm that acts as an intermediary between buyers and sellers in financial markets, facilitating transactions for a fee or commission. Brokers can specialize in various areas, including stocks, bonds, real estate, and insurance.

A financial plan that outlines expected income and expenses over a specific period, used to allocate resources, manage spending, and achieve financial goals. It helps track cash flow, ensure savings, and control debt.

A bullish continuation pattern in technical analysis that occurs after a strong upward move, where the price consolidates within a narrow, downward-sloping range (resembling a flag), often signaling the potential for another upward breakout.

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A bullish continuation pattern in technical analysis that forms after a strong upward price movement, followed by a brief consolidation in a small, symmetrical triangle shape (resembling a pennant), signaling potential for another upward breakout.

A false signal indicating a rising market trend, luring traders into long positions before the price reverses downward.

An investment strategy where an investor buys securities and holds them long-term, regardless of market fluctuations.

Placing a buy order at the current ask price, which is the lowest price a seller is willing to accept. This approach is often considered bullish, as it indicates strong buying interest and urgency to enter a position at the prevailing price.

Placing a buy order at the current bid price, which is the highest price a buyer is willing to pay. This approach is often associated with short sellers closing their positions, as they aim to buy back shares at the bid to benefit from downward momentum. It is generally seen as bearish or cautious, indicating that buyers are waiting for sellers to lower their prices.

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Commodity Channel Index - A momentum-based technical indicator used to identify overbought or oversold conditions in an asset.

Certificate of Deposit - A low risk savings account that holds a fixed amount of money for a set period, earning interest, with penalties for early withdrawal.

Canada Deposit Insurance Corporation - A Canadian federal agency that insures eligible deposits at member financial institutions, protecting up to $100,000 per depositor, per category, per institution.

Contract for Difference - A financial derivative that allows traders to speculate on the price movement of assets without owning the underlying asset.

Center for Financial Research and Analysis - An independent investment research firm that provides analysis on stocks, mutual funds, and other financial instruments.

Consumer Price Index - Measures inflation via average price changes in goods/services paid by consumers over time, tracking cost of living.

Central Pivot Range - A technical analysis tool consisting of three price levels that indicate potential support and resistance areas for a trading session.

A financial contract that gives the holder the right, but not the obligation, to buy an underlying asset at a specified price within a set time frame.

A set of support and resistance levels calculated from the previous day’s trading range, designed to identify potential turning points in the market. It includes eight levels (R1–R4 for resistance and S1–S4 for support), with R3, R4, S3, and S4 being the most critical for trading entries and exits.

A chart that displays the high, low, open, and close prices of a stock.

A formation of candlesticks on a price chart used in technical analysis to predict future market movements based on past price behavior.

Capital Expenditure - Funds used by a company to acquire, upgrade, or maintain physical assets like property, buildings, or equipment.

The profit made from selling an asset, such as stocks, bonds, or real estate, for more than its purchase price.

In trading, a catalyst is an event or piece of news that drives significant movement in an asset's price, often creating opportunities for traders due to increased volatility.

Excessive buying and selling of securities by a broker.

A regulatory mechanism that temporarily halts trading on an exchange to prevent extreme volatility when prices move too rapidly in a short period.

To sign a loan or lease agreement along with another party, taking on joint responsibility for the debt; if the primary borrower defaults, the co-signer is responsible for repaying the loan.

Physical goods such as gold, silver, oil, or agricultural products that are traded on exchanges and used as raw materials in production or as investment assets, often serving as a hedge against inflation.

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The process by which an investment's earnings generate additional earnings over time, as returns are reinvested and begin to grow exponentially.

The date on which a futures or options contract expires, after which it can no longer be traded. Traders must settle in cash or take delivery, depending on the contract.

The original value or purchase price of an asset, used to determine capital gains or losses when the asset is sold.

A strategy where an investor holds a long position in a stock and sells a call option on that stock.

An entry recording an amount received or a deposit into a bank account, indicating an increase in assets or a decrease in liabilities. In accounting, it is used to signify the right side of an account ledger.

A flexible loan from a financial institution that allows a borrower to access funds up to a specified limit as needed.

A numerical rating that represents an individual's creditworthiness, based on their credit history, debt levels, repayment behavior, and other financial factors. It is used by lenders to evaluate the risk of lending money, with scores typically ranging from 300 to 850.

The exchange rate between two currencies, neither of which is the official currency of the country in which the quote is given.

A digital or virtual currency secured by cryptography, operating on decentralized networks using blockchain technology.

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Dollar Cost Averaging - An investment strategy where a fixed amount of money is invested regularly, regardless of the asset's price, to reduce the impact of market volatility.

Due Diligence - The comprehensive process of researching and analyzing a potential investment, company, or asset before making a decision.

SPDR Dow Jones Industrial Average ETF - An exchange-traded fund that tracks the performance of the Dow Jones Industrial Average, representing 30 large U.S. companies.

Dow Jones Industrial Average - A stock market index that tracks the performance of 30 large, publicly traded U.S. companies.

Depth of Market - A real-time list showing the number of buy and sell orders at different price levels for a specific security, providing insight into supply, demand, and liquidity in the market.

Dividend Reinvestment Plan - A program that automatically reinvests cash dividends into additional shares of the issuing company’s stock.

A private, off-exchange trading venue where large orders are executed anonymously, away from the public markets, to minimize price impact.

An order to buy or sell a security that expires at the end of the trading day if not executed.