What are the most important trading terms

The Traders Glossary

It’s essential for all traders to understand and remember the basic terminology. However because a lot of the basic terms are acronyms it can be a confusing task.

Even experienced traders may find this glossary useful as a refresher or resource to print out and check when they don’t remember something.

BetterTrader has created this glossary to help traders clarify and memorize basic concepts. Please note that the glossary is presented in alphabetical order.

Currency Symbols For Different Countries

Currencies

BetterTrader online trading tool
AUD - Australian Dollar
BRL - Brazilian Real
CAD - Canadian Dollar
CHF - Swiss Franc
CNY - Chinese Yen
EUR - Euro
GBP - Great British Pound
ILS - Israeli Shekel
JPY - Japanese Yen
RUB - Russian Ruble
USD - United States Dollar

General Economic Terms

General Terms

BetterTrader online trading tool
API American Petroleum Institute
BCO Brent Crude Oil
CB Conference Board
CS HPI Case-Shiller House Price Index
CFTC Commodity Futures Trading Commission
CPI Consumer Price Index
FOMC Federal Open Market Committee
GDP Gross Domestic Product
GFK Germany's largest market research institute
HICP Harmonised Index of Consumer Prices (more information)
ISM Institute of Supply Management
MoM Month Over Month (more information)
PMI Purchasing Managers’ Index
QoQ Quarter over Quarter (more information)
RMPI Raw Materials Price Index
WTI West Texas Intermediate
YoY Year Over Year (more information)
HPI House Price Index
PCE Personal Consumption Expenditures

Central Banks Of Different Countries

Central Banks

BetterTrader online trading tool
BoC Bank of Canada
BoE Bank of England
BoJ Bank of Japan
CBoB Central Bank of Brazil
CBoRF Central Bank of Russia Federation
ECB Europe Central Bank
FED Federal Reserve of United States
PBoC Popular Bank of China
RBA Reserve Bank of Australia
SNB Swiss National Bank

Most important Economic Events

ADP Non-Farm Employment Change

Is the estimated change in the number of employed people in the USA, during the past month. Farming industry and government employees excluded.

Markets

SPX 500 (known as S&P500)

Is an index noted for it's market size, liquidity and industry grouping. It is composed of 500 corporations (stocks) that are traded on the NASDAQ and NYSE. It is considered a measure for all U.S. equities.

EUR/USD

Euro (European currency) to United States Dollar (currency of the United States of America). EUR/USD is the price of 1 Euro in American dollars.

GBP/USD

Great Britain Pound (currency of England) to United States Dollar (currency of the United States of America). GBP/USD is the price of 1 Great Britain Pound in American dollars.

Brent Crude Oil

A trading classification for sweet light crude oil.

Gold

Generally refers to the price for one Troy ounce of gold.

Trading - Basic

Ask

Also called “Offer”, meaning; the price a seller is willing to accept. In trading context it's the price that a trader is willing to sell a stock, bond or currency.

Bid

Is the price that buyers are willing to pay for that specific offer. In trading context it's an offer made by an investor or trader to buy a security, commodity or currency.

Broker

Someone that buys or sells an investment for you, and receives a commission for it.

Dividend

Portion of a company’s earnings that goes straight to the shareholders.

Exchange

Place where all the different investments(asset classes and markets) are traded.

Index

Generally represents a number of assets with a common denominator. Used as a market benchmark that tells traders how the overall market for that type of asset is performing.

Sector

A group of companies ( or rather stocks of the companies) that are part of the same industry and have the same kind of business.

Order

A request (bid) of an investor to buy or sell a asset.

Quote

The asset’s last trading price.

Trading - Advanced

Bear Market

When the stock market as a whole is constantly decreasing stock prices (down trend).

Bull Market

When prices for most stocks in the market are constantly increasing (up trend).

Dividend

A portion of company earnings that goes straight to the shareholders.

OPEN A FREE PRACTICE ACCOUNT

Learn by doing.

Get the BetterTrader.co App!

×

COME ABOARD

Interested in joining us?

If you're smart, motivated and want something more than a job then have a look at the jobs below. We'd like to meet you.

Marketing

Sales

Engineering

×

Apply here

Internships positions also available: Apply here