Trading glossary.
In collaboration with our students, we have created our own trading glossary, which the ATT community will continue to expand and improve. Our aim is to give you a basic overview of important trading terms. This lets you deepen your knowledge and look up missing information whenever you need it.
14 topics, 58 terms and articles
The glossary is continually being expanded.
- 01ArticleStock ExchangeA stock exchange is an organised, regulated market that brings buyers and sellers of securities such as shares and bonds together under fixed rules and oversees price formation.
- 028 termsSecuritiesSecurities are tradable financial instruments such as shares, bonds and fund units. This section also covers derivatives, CFDs, foreign exchange and commodities.SharesBondCFD (Contract for Difference)DerivativesForeign Exchange (Forex)
- 03ArticleTechnical analysisTechnical analysis, also called chart analysis, tries to forecast price movements from past price action, using trends, chart patterns, indicators and oscillators.Bar chartBollinger BandsFlag patternGapLine chart
- 04ArticleFundamental analysisFundamental analysis forecasts prices from economic and company data – such as interest rates, inflation, earnings or supply and demand – rather than from price charts.
- 059 termsEconomic DataEconomic data such as GDP, inflation figures and business surveys show how an economy is performing and shape central bank decisions – key drivers of forex and CFD prices.Beige BookGross Domestic Product (GDP)DeflationFOMC (Federal Open Market Committee)High Interest Rate Policy
- 06ArticleMarket TechniqueMarket technique is a trend-following trading approach based on the Dow theory. It reads trends using points 1-2-3 and combines a higher timeframe with a signal timeframe.Dow TheoryTrading Setups in Market TechniqueStop Rules in Market Technique
- 07ArticleMarket participantsMarket participants are the groups active in financial markets – institutional investors, hedgers, speculators, central banks and arbitrageurs – each with its own goals and time horizon.ArbitrageursCentral banks
- 0810 termsOrder TypesOrder types define how and when a buy or sell order is executed. This section explains key terms such as bid and ask prices, market orders, lots and short selling.Ask PriceSell at MarketBid PriceBuy at MarketDay Order
- 09ArticleTrendsA trend is a sustained price movement in one direction. Uptrends make higher highs and higher lows, downtrends lower highs and lower lows; otherwise the market moves sideways.
- 1010 termsRisk and Money ManagementRisk and money management covers the rules traders use to limit losses, size their positions and protect their capital – from margin and drawdown to hedging.Hedging a PositionBreak-EvenPaper Profit and LossRisk-Reward RatioDrawdown
- 117 termsTrading StrategiesTrading strategies are structured approaches that define what, when and how long to trade. This section covers styles from buy and hold to day trading and scalping.Buy and HoldDay TradingDiversificationTrading SystemIntraday Trading
- 121 termsTrading PsychologyTrading psychology deals with the emotions, habits and thinking errors that influence trading decisions, and with ways of keeping them under control.Behavioural Finance
- 13ArticleTotal Return ApproachAn investment approach that aims to achieve positive absolute returns in any market phase by combining long and short positions – often as spread trades – across several asset classes.
- 14ArticleOptionsAn option gives its buyer the right, but not the obligation, to buy (call) or sell (put) an underlying asset at a fixed strike price during or at the end of a set term.
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