Market glossary

A quarterly report US institutional investment managers with at least $100 million in qualifying securities must file with the SEC, listing their US-listed equity holdings. It is filed up to 45 days after quarter-end, so it shows past positions rather than current ones.

Stocks

Related: Share (stock)

Any cryptocurrency other than bitcoin. Altcoins range from large smart-contract platforms to small, thinly traded tokens, and as a group tend to be more volatile than bitcoin.

Crypto

Related: Market capitalisation, Tokenomics

Exploiting a price difference for the same or economically equivalent asset in two places — buying where it is cheaper and selling where it is dearer. Pure arbitrage is low-risk in theory, but opportunities are usually small and short-lived because many participants compete to close them.

Trading & risk

Related: Market maker

Testing a trading rule on historical data to see how it would have performed. Useful results require realistic costs and slippage and must avoid look-ahead bias and over-fitting — a strategy tuned too closely to the past often fails in live markets.

Trading & riskTechnical analysis

Related: Drawdown

When nearer-dated futures trade above later-dated ones, usually a sign of tight current supply. Holders of long futures positions earn a positive roll return in backwardated markets.

Commodities

Related: Contango, Roll yield

The first currency in a pair (EUR in EUR/USD). Buying the pair means buying the base currency and selling the quote currency.

Forex

Related: Currency pair, Quote currency

One hundredth of a percentage point (0.01%). A rate rise from 4.25% to 4.50% is 25 basis points.

Macro & policy

Related: Federal funds rate, Treasury yield

A measure of how much a stock has tended to move relative to the overall market. A beta of 1 moves in line with the market, above 1 is more volatile and below 1 less so. It is based on past data and can change.

Stocks

Related: Volatility

The gap between the highest price a buyer is currently willing to pay (the bid) and the lowest price a seller will accept (the ask). It is an implicit trading cost: buying at the ask and immediately selling at the bid loses the spread. Spreads are usually tight in heavily traded markets and widen when liquidity thins, such as around major data releases or outside main trading hours.

Trading & riskForexStocks

Related: Liquidity, Market maker, Slippage

The scheduled cut, every 210,000 blocks (roughly four years), in the number of new bitcoins awarded to miners for each block. The most recent halving, in April 2024, reduced the block subsidy from 6.25 to 3.125 BTC. Halvings slow the growth of supply toward Bitcoin's 21 million cap.

CryptoBitcoin market page →

Related: Proof of work, Blockchain

A shared ledger in which transactions are grouped into blocks, each cryptographically linked to the previous one, and copies are kept by many independent computers (nodes). Changing past records would require redoing that work across the network, which makes the history very hard to alter.

Crypto

Related: Proof of work, Proof of stake

A large, well-established company with a long record of stable earnings, often a household name and a member of major indices such as the Dow Jones Industrial Average.

Stocks

Related: Dow Jones Industrial Average

An envelope drawn a set number of standard deviations — typically two — above and below a moving average, commonly 20 periods. The bands widen when volatility rises and narrow when it falls; a narrow 'squeeze' often precedes a larger move.

Technical analysis

Related: Volatility, Moving average

A move through a support or resistance level or out of a chart pattern, which traders read as the start of a new move in that direction. A false breakout (or fakeout) quickly reverses back into the prior range.

Technical analysis

Related: Support and resistance, Volume

The international crude oil benchmark, based on a basket of North Sea grades and traded as futures on ICE. Most of the world's internationally traded oil is priced off Brent; the gap between Brent and WTI is known as the Brent–WTI spread.

CommoditiesBrent Crude market page →

Related: WTI crude, OPEC+

A chart in which each period is drawn as a 'candle': the body spans the open and close, and thin wicks show the high and low. The body's colour shows whether the price closed above or below where it opened. Patterns of one or several candles, such as the hammer or engulfing pattern, are used to read short-term sentiment.

Technical analysis

Related: Doji

Borrowing in a low-interest-rate currency and investing in a higher-yielding one to earn the interest-rate difference. Carry trades tend to do well in calm markets but can unwind violently when volatility jumps or the funding currency rallies, as traders rush to repay their borrowing.

ForexMacro & policy

Related: Interest rate differential, Risk-on / risk-off

The institution that sets a country's or region's monetary policy, issues its currency and oversees the banking system — for example the Federal Reserve, European Central Bank, Bank of England and Bank of Japan. Its interest-rate decisions and guidance are among the most powerful forces in every asset class.

Macro & policyForex

Related: Federal Reserve (Fed), Hawkish / dovish, Forward guidance

A measure of the average change in prices paid by consumers for a basket of goods and services. In the US it is published monthly by the Bureau of Labor Statistics and is one of the most market-moving data releases, especially when it surprises against forecasts.

Macro & policy

Related: Inflation, Core inflation, PCE price index

When futures for later delivery are priced above nearer ones (or above spot), typically reflecting storage, financing and insurance costs or ample current supply. Investors who roll long futures positions in contango tend to lose value on each roll.

Commodities

Related: Backwardation, Roll yield, Futures contract

A leveraged derivative that pays the difference between an asset's price when a trade is opened and when it is closed, without owning the asset. CFDs are offered by brokers on stocks, indices, currencies and commodities in many countries but are not available to retail traders in the United States. Regulators require brokers to warn that most retail CFD accounts lose money.

Trading & riskForexIndices

Related: Leverage, Margin

Inflation excluding volatile food and energy prices. Central banks watch it because it gives a clearer read of underlying price pressure than the headline rate.

Macro & policy

Related: Consumer Price Index (CPI), PCE price index

By common convention, a correction is a fall of at least 10% from a recent high and a bear market a fall of at least 20%. A bull market is a sustained rise, often dated from a 20% gain off a low.

IndicesStocks

Related: Drawdown

Software or a hardware device that stores the private keys controlling crypto holdings. Hot wallets are connected to the internet and convenient; cold wallets keep keys offline for security. Whoever holds the private key or recovery phrase controls the funds — if it is lost or stolen, there is usually no way to recover them.

Crypto

Related: Self-custody

Direct buying or selling of a currency by a central bank or finance ministry to influence its exchange rate — for example selling foreign reserves to support a weakening currency. Officials often try verbal intervention, warning markets, before acting.

ForexMacro & policyUSD/JPY market page →

Related: Exchange rate, Central bank

Currencies are quoted in pairs such as EUR/USD. The first is the base currency and the second the quote currency; the price shows how many units of the quote currency buy one unit of the base. If EUR/USD is 1.10, one euro costs 1.10 US dollars.

ForexEUR/USD market page →

Related: Base currency, Quote currency, Major pairs

Financial services — trading, lending, borrowing — run by smart contracts on public blockchains rather than by banks or brokers. DeFi is open to anyone with a wallet but carries smart-contract bugs, hacks, oracle failures and limited legal recourse as additional risks.

Crypto

Related: Smart contract, Liquidity pool, Yield farming

Spreading capital across assets whose prices do not move in lockstep, so that a loss in one holding has less effect on the whole portfolio. It reduces company- or asset-specific risk but cannot remove market-wide risk, and correlations between assets tend to rise during sell-offs.

Trading & riskStocks

Related: Exchange-traded fund (ETF), Stock index

A cash payment (or occasionally extra shares) a company distributes to shareholders out of its profits. The dividend yield is the annual dividend per share divided by the share price. To receive a dividend you must own the stock before its ex-dividend date.

Stocks

Related: Share (stock), Share buyback

A candlestick whose open and close are virtually the same, leaving a very thin body. It signals indecision between buyers and sellers and is watched for potential reversals after a strong move.

Technical analysis

Related: Candlestick chart

A chart published with the Fed's quarterly Summary of Economic Projections showing where each FOMC participant expects the federal funds rate to be at the end of the coming years. It is a guide to officials' thinking, not a commitment.

Macro & policy

Related: FOMC, Forward guidance

A price-weighted index of 30 large US blue-chip companies, first published in 1896 and one of the oldest stock market indices. Because it is price-weighted and small, it can diverge from broader benchmarks.

IndicesDow Jones Industrial Average market page →

Related: Price-weighted index, Blue chip

The decline in an account or strategy from a peak to a subsequent low, usually expressed as a percentage. Maximum drawdown is the largest such fall over a period. Recovering from a drawdown takes a proportionally larger gain: a 50% loss needs a 100% return to break even.

Trading & risk

Related: Position sizing, Backtesting

A company's net profit attributable to ordinary shareholders divided by its average number of shares. Results are judged against analysts' consensus EPS estimate — a 'beat' or 'miss' — and companies often also report an adjusted figure that excludes one-off items.

Stocks

Related: Price-to-earnings ratio (P/E), Earnings season, Guidance

The weeks after each calendar quarter ends when most listed companies report results. In the US it starts roughly two weeks after quarter-end with the big banks. Earnings reports and outlooks drive individual stocks and often the wider market.

Stocks

Related: Earnings per share (EPS), Guidance

The US Energy Information Administration's Weekly Petroleum Status Report, normally released on Wednesdays, showing changes in US crude oil, gasoline and distillate stocks. A larger-than-expected draw is usually read as bullish for oil prices and a build as bearish.

Commodities

Related: WTI crude

An index that gives every member the same weight, rebalanced periodically. Comparing an equal-weight version with the standard cap-weighted index shows whether gains are broad-based or concentrated in the biggest stocks.

Indices

Related: Market-cap-weighted index, Market breadth

The price of one currency in terms of another. Floating rates are set by supply and demand in the market; pegged or managed rates are held at or near a target by a central bank or government.

ForexMacro & policy

Related: Currency pair, Currency intervention

A fund that trades on a stock exchange like a share, usually tracking an index, sector, commodity or strategy. ETFs give low-cost diversified exposure, and a creation-and-redemption process with authorised participants keeps their price close to the value of their holdings.

StocksIndicesCommoditiesCrypto

Related: Stock index, Spot bitcoin ETF, Diversification

The interest rate at which US banks lend reserves to each other overnight. The FOMC sets a target range for it, and changes ripple through to mortgage rates, corporate borrowing costs, the dollar and asset valuations.

Macro & policy

Related: FOMC, Basis point

The US central bank, with a dual mandate of maximum employment and stable prices. Interest rates are set by its Federal Open Market Committee; the chair's press conferences and the Committee's projections are closely parsed by markets worldwide.

Macro & policy

Related: FOMC, Federal funds rate, Central bank

Horizontal levels drawn at fixed percentages of a prior move — commonly 23.6%, 38.2%, 50%, 61.8% and 78.6% — where traders watch for a pullback to pause. Apart from 50%, the ratios derive from the Fibonacci sequence.

Technical analysis

Related: Support and resistance

The Federal Reserve committee that sets US monetary policy. It has 12 voting members — the seven Fed governors, the president of the New York Fed and four of the other eleven regional Fed presidents on a rotating basis — and holds eight scheduled meetings a year.

Macro & policy

Related: Federal Reserve (Fed), Federal funds rate, Dot plot

Communication by a central bank about the likely future path of policy, used to shape market expectations before rates actually change.

Macro & policy

Related: Hawkish / dovish, Dot plot

The shares available for public trading, excluding stakes held by insiders, governments and other locked-up holders. Major indices weight companies by float-adjusted market value, and stocks with a small float can move sharply on modest demand.

Stocks

Related: Market capitalisation, Short squeeze

Assessing an asset's value from its underlying drivers — earnings, cash flow and balance sheets for companies; growth, inflation, interest rates and trade for currencies; supply and demand for commodities; network usage and token economics for crypto.

Trading & riskStocksMacro & policy

Related: Technical analysis, Price-to-earnings ratio (P/E), Earnings per share (EPS)

A standardised, exchange-traded agreement to buy or sell an asset at a set price on a future date. Futures are traded on margin and marked to market daily. They are used to hedge (a farmer locking in a crop price) and to speculate on commodities, indices, currencies, interest rates and crypto.

Trading & riskCommoditiesIndices

Related: Contango, Backwardation, Margin, Index futures

The fee paid to process a transaction or run a smart contract on Ethereum and similar networks, priced in small units of the native token (gwei on Ethereum). Fees rise when the network is congested.

CryptoEther market page →

Related: Smart contract, Layer 2

A precious metal held as a store of value, a hedge against currency debasement and a safe haven, as well as used in jewellery and industry. Because it pays no interest, it often moves inversely to real interest rates and the US dollar; central bank buying is another major source of demand.

CommoditiesGold market page →

Related: Safe haven, Troy ounce, Real interest rate

The total value of goods and services produced in an economy over a period, the broadest measure of economic activity. US quarterly GDP growth is reported at an annualised rate, which makes it look larger than the quarter-on-quarter figures used in Europe and the UK.

Macro & policy

Related: Recession

A company's own forecast for future revenue, profit or other metrics. Share prices often react more to changes in guidance than to the quarter just reported, because markets price expectations.

Stocks

Related: Earnings season, Earnings per share (EPS)

Hawkish describes a central bank or official leaning toward higher interest rates to fight inflation; dovish describes a leaning toward lower rates to support growth and jobs. A hawkish surprise typically lifts a currency and bond yields.

Macro & policyForex

Related: Central bank, Forward guidance

A reversal pattern of three peaks with the middle one (the head) highest, joined at the lows by a 'neckline'. A break below the neckline is read as a signal that an uptrend has ended; the inverted version at a market low signals a possible bottom.

Technical analysis

Related: Breakout, Support and resistance

Taking an offsetting position to reduce the risk of an existing one — for example buying put options against a stock portfolio, or an airline buying oil futures to lock in fuel costs. A hedge reduces potential losses but also limits gains and has a cost.

Trading & risk

Related: Options, Futures contract

A natural gas pipeline hub in Louisiana and the delivery point for NYMEX natural gas futures, making it the US benchmark gas price. Europe's equivalent benchmark is the Dutch TTF.

CommoditiesNatural Gas market page →

Related: Futures contract

Futures contracts on a stock index, such as the E-mini S&P 500. They trade nearly around the clock, so they show how the stock market is expected to open, and are widely used for hedging and for leveraged exposure.

Indices

Related: Futures contract, Stock index

Periodic changes to an index's members and weights. Because many funds track indices, stocks being added often see heavy buying around the effective date, and stocks being removed see selling.

IndicesStocks

Related: Stock index, Exchange-traded fund (ETF)

The rate at which the general level of prices rises over time, reducing what money can buy. Most major central banks aim for about 2% a year. Deflation is a sustained fall in prices; disinflation is inflation slowing but still positive.

Macro & policy

Related: Consumer Price Index (CPI), PCE price index, Core inflation, Central bank

The weekly number of new US applications for unemployment benefits, released by the Department of Labor on Thursdays. Because it is timely, it is watched as an early signal of layoffs.

Macro & policy

Related: Unemployment rate, Nonfarm payrolls (NFP)

The first sale of a company's shares to the public, after which they trade on an exchange. IPOs raise capital for the company and let early investors sell; first-day price moves can be large.

Stocks

Related: Share (stock), Free float

The gap between interest rates in two economies. Changes in expected differentials — driven mostly by central bank policy — are one of the main forces behind exchange-rate moves, because capital tends to flow toward higher expected returns.

ForexMacro & policy

Related: Carry trade, Central bank

A network built on top of a base blockchain (layer 1) to handle transactions faster and more cheaply, then settle back to the main chain. Rollups on Ethereum and the Lightning Network on Bitcoin are examples.

Crypto

Related: Gas fee, Blockchain

Using borrowed funds or derivatives to control a position larger than the capital put up. With 10:1 leverage, a 1% move in the asset becomes roughly a 10% gain or loss on the trader's margin. Leverage magnifies losses exactly as much as gains and is the most common reason small accounts are wiped out.

Trading & riskForexCrypto

Related: Margin, Margin call, Liquidation

An instruction to buy at or below, or sell at or above, a specified price. It controls the execution price but may never be filled if the market does not reach the limit.

Trading & risk

Related: Market order, Stop-loss order

The forced closing of a leveraged position when its collateral no longer covers potential losses. In crypto derivatives, clusters of liquidations can feed on themselves: forced selling pushes prices lower, triggering further liquidations, which is why sharp moves are often described as liquidation cascades.

Trading & riskCrypto

Related: Margin call, Leverage, Perpetual futures

How easily an asset can be bought or sold in size without moving its price much. Liquid markets have many active participants, deep order books and narrow spreads; illiquid ones can gap sharply on modest orders. The term is also used in macro to describe how much money and credit is circulating in the financial system.

Trading & risk

Related: Bid–ask spread, Slippage, Volume

A pot of two or more tokens locked in a smart contract that lets users trade against it on a decentralised exchange. Liquidity providers earn a share of trading fees but face 'impermanent loss' when the relative prices of the pooled tokens change.

Crypto

Related: DeFi (decentralised finance), Yield farming

Owning an asset, or holding a derivative that gains value when the asset rises. A long position profits if the price goes up and loses if it falls.

Trading & risk

Related: Short selling

The standard trade size in forex: a standard lot is 100,000 units of the base currency, a mini lot 10,000 and a micro lot 1,000. On EUR/USD a one-pip move is worth about $10 on a standard lot.

Forex

Related: Pip, Leverage

A trend and momentum indicator calculated as the 12-period exponential moving average minus the 26-period EMA, plotted with a 9-period EMA of that difference as the signal line. Crossovers of the two lines and of the zero line are used as momentum signals; the histogram shows the gap between them.

Technical analysis

Related: Moving average, Relative Strength Index (RSI)

The most traded currency pairs, each including the US dollar: EUR/USD, USD/JPY, GBP/USD, USD/CHF, AUD/USD, USD/CAD and NZD/USD. Pairs that do not include the dollar, such as EUR/GBP or EUR/JPY, are called crosses.

Forex

Related: Currency pair

The collateral a broker or exchange requires to open and keep a leveraged position. Initial margin is needed to open the trade; maintenance margin is the minimum equity that must be kept in the account while it stays open. In stock trading, a margin account also lets investors borrow to buy shares.

Trading & riskForexStocks

Related: Leverage, Margin call

A demand from a broker to add funds or reduce positions because account equity has fallen below the maintenance margin requirement. If the shortfall is not covered, the broker can close positions at the prevailing market price, locking in the loss.

Trading & risk

Related: Margin, Leverage, Liquidation

How many stocks are taking part in a market move — measured by advancing versus declining issues, new highs versus new lows, or the share of stocks above their moving averages. Rallies led by only a few large stocks are described as narrow.

IndicesTechnical analysis

Related: Equal-weight index

The total market value of a company's shares (share price × shares outstanding) or, in crypto, of a token's circulating supply. It is the usual way to size companies: large-cap, mid-cap and small-cap.

StocksCrypto

Related: Share (stock), Market-cap-weighted index

A firm that continuously quotes prices at which it will buy (bid) and sell (ask), providing liquidity to other traders and earning the spread. Market makers manage the inventory risk this creates by hedging and adjusting their quotes.

Trading & riskStocks

Related: Bid–ask spread, Liquidity

An instruction to buy or sell immediately at the best price currently available. It prioritises speed and certainty of execution over price, so in fast or thin markets the fill can differ from the last quoted price.

Trading & risk

Related: Limit order, Slippage

An index in which each company counts in proportion to its (usually float-adjusted) market value, so the largest companies have the most influence. The S&P 500 and Nasdaq-100 are built this way, which is why a handful of mega-caps can drive their performance.

Indices

Related: Price-weighted index, Equal-weight index, S&P 500

The average price over a rolling window, plotted to smooth out noise. A simple moving average (SMA) weights each period equally; an exponential moving average (EMA) gives more weight to recent prices. The 50-day and 200-day averages are widely watched; the 50-day crossing above the 200-day is called a golden cross, and crossing below a death cross.

Technical analysis

Related: MACD, Trendline

An index of 100 of the largest non-financial companies listed on the Nasdaq stock market, weighted by modified market capitalisation. It is heavily concentrated in technology and communication companies. The broader Nasdaq Composite includes nearly all Nasdaq-listed stocks.

IndicesNasdaq 100 market page →

Related: S&P 500, Market-cap-weighted index

The monthly change in the number of US workers on payrolls, excluding farm workers and a few other groups, published by the Bureau of Labor Statistics in the Employment Situation report — usually on the first Friday of the month alongside the unemployment rate and wage growth. It is one of the biggest scheduled market movers.

Macro & policy

Related: Unemployment rate, Federal Reserve (Fed)

The alliance formed in 2016 between the Organization of the Petroleum Exporting Countries, led by Saudi Arabia, and other producers led by Russia. Its decisions on production quotas and voluntary cuts are among the biggest drivers of oil prices.

CommoditiesMacro & policy

Related: Brent crude, WTI crude

Contracts that give the buyer the right, but not the obligation, to buy (a call) or sell (a put) an asset at a set strike price before or at expiry. The buyer pays a premium and can lose no more than that; the seller (writer) collects the premium but takes on the obligation. Option values fall as expiry approaches, an effect called time decay.

Trading & riskStocks

Related: Hedging, VIX, Futures contract

Labels for when an indicator such as RSI or a stochastic oscillator suggests a price has risen (overbought) or fallen (oversold) too far, too fast relative to its recent range. They describe stretched momentum, not a guaranteed reversal.

Technical analysis

Related: Relative Strength Index (RSI)

The Personal Consumption Expenditures price index, published monthly by the US Bureau of Economic Analysis. It covers a broader range of spending than CPI and is the Federal Reserve's preferred inflation measure — the Fed's 2% target is defined in terms of PCE.

Macro & policy

Related: Consumer Price Index (CPI), Inflation, Federal Reserve (Fed)

Crypto futures with no expiry date. A periodic funding payment between longs and shorts keeps the contract price close to the spot price: when funding is positive, longs pay shorts, which signals bullish positioning. High leverage on perpetuals makes liquidation cascades more likely.

Crypto

Related: Liquidation, Futures contract, Leverage

The standard unit of a currency price move: 0.0001 for most pairs, and 0.01 for pairs quoted in Japanese yen. Many brokers quote a further decimal place, a fractional pip or 'pipette'. A move in EUR/USD from 1.1000 to 1.1025 is 25 pips.

Forex

Related: Lot, Currency pair

Deciding how much to buy or sell on a trade, usually so that the loss if the stop-loss is hit equals a fixed, small share of the account (many traders use 1–2%). Consistent sizing keeps any single losing trade from doing outsized damage.

Trading & risk

Related: Risk–reward ratio, Stop-loss order, Drawdown

Trading in US stocks outside the regular 9:30 a.m.–4:00 p.m. Eastern session. Many earnings reports are released in these windows, so large moves often happen on lighter volume and wider spreads than during regular hours.

Stocks

Related: Liquidity, Earnings season

Share price divided by earnings per share. A trailing P/E uses the last 12 months of earnings; a forward P/E uses analysts' estimates. A high P/E means investors are paying more for each dollar of profit, often because they expect faster growth.

StocksIndices

Related: Earnings per share (EPS)

An index in which each stock's influence depends on its share price rather than its company size, so a $500 stock moves the index more than a $50 one. The Dow Jones Industrial Average and Japan's Nikkei 225 are price-weighted.

Indices

Related: Dow Jones Industrial Average, Market-cap-weighted index

A way of securing a blockchain in which validators lock up (stake) the network's own token for the right to propose and confirm blocks, and can lose part of it for misbehaving. Ethereum moved from proof of work to proof of stake in September 2022.

CryptoEther market page →

Related: Staking, Proof of work

A way of securing a blockchain in which miners compete to solve a computational puzzle; the winner adds the next block and earns the reward. Bitcoin uses proof of work. Its security comes from the cost of the energy and hardware an attacker would need.

Crypto

Related: Proof of stake, Bitcoin halving

A monthly survey of purchasing managers about orders, output, employment and prices. A reading above 50 indicates expansion and below 50 contraction. In the US the ISM and S&P Global PMIs are closely followed; China, the eurozone and the UK publish their own.

Macro & policy

Related: Gross domestic product (GDP)

Quantitative easing is large-scale central bank buying of government bonds and other assets to push down longer-term interest rates and add liquidity. Quantitative tightening is the reverse — shrinking the balance sheet by letting bonds mature without reinvesting, or selling them.

Macro & policy

Related: Central bank, Treasury yield

The second currency in a pair (USD in EUR/USD), in which the price of the base currency is expressed. Profits and losses on the pair are calculated in the quote currency.

Forex

Related: Currency pair, Base currency

An interest rate after subtracting inflation. In markets it is often read from inflation-protected bond yields (such as US TIPS). Rising real yields tend to weigh on gold and on richly valued growth stocks.

Macro & policyCommodities

Related: Treasury yield, Inflation, Gold (XAU)

A significant, broad and lasting decline in economic activity. Two consecutive quarters of falling GDP is a common rule of thumb, but in the US recessions are officially dated by the National Bureau of Economic Research using a wider set of indicators, including employment and income.

Macro & policy

Related: Gross domestic product (GDP), Yield curve, Stagflation

A momentum oscillator, developed by J. Welles Wilder, that scores the speed of recent gains against recent losses on a 0–100 scale, typically over 14 periods. Readings above 70 are conventionally called overbought and below 30 oversold, though strong trends can keep RSI at extremes for long periods.

Technical analysis

Related: Overbought / oversold, MACD

Shorthand for shifts in market mood. In risk-on periods investors favour assets such as equities, high-yield credit, commodity currencies and crypto; in risk-off periods they move toward perceived safe havens such as government bonds, the US dollar, the Japanese yen, the Swiss franc and gold.

Trading & riskMacro & policy

Related: Safe haven, VIX

The potential loss on a trade (entry to stop-loss) compared with its potential gain (entry to target). A setup risking $1 to make $3 has a 1:3 ratio. It only means something alongside the probability of the target being reached.

Trading & risk

Related: Position sizing, Stop-loss order, Take-profit order

The gain or loss from closing an expiring futures contract and opening a later one. It is negative in contango and positive in backwardation, and explains why commodity funds can lag the spot price over time.

Commodities

Related: Contango, Backwardation, Exchange-traded fund (ETF)

An index of roughly 2,000 small-cap US companies — the smaller members of the Russell 3000 — and the main benchmark for US small caps, which tend to be more sensitive to domestic growth and borrowing costs.

IndicesRussell 2000 market page →

Related: Stock index

A float-adjusted, market-cap-weighted index of about 500 leading US companies selected by a committee at S&P Dow Jones Indices. It covers roughly 80% of US equity market value and is the most widely used benchmark for US stocks.

IndicesS&P 500 market page →

Related: Market-cap-weighted index, Nasdaq-100

An asset expected to hold or gain value during market stress. Gold, US Treasuries, the Japanese yen and the Swiss franc are the traditional examples. Safe-haven behaviour is a tendency, not a guarantee, and can break down depending on the cause of the stress.

Trading & riskForexCommodities

Related: Risk-on / risk-off, Gold (XAU)

Holding your own private keys rather than leaving coins with an exchange or custodian. It removes the risk of a platform failing or freezing withdrawals, but places full responsibility for security and backups on the owner.

Crypto

Related: Crypto wallet

A unit of ownership in a company. Shareholders can benefit from rising share prices and dividends, usually have voting rights, and rank last behind creditors if the company fails.

Stocks

Related: Dividend, Market capitalisation

A company buying its own shares in the market, reducing the number outstanding. Buybacks return cash to shareholders and lift earnings per share, but use money that could otherwise be invested or kept as a cushion.

Stocks

Related: Dividend, Earnings per share (EPS)

The number of shares that have been sold short and not yet bought back, often shown as a percentage of the float. High short interest shows heavy bearish positioning and raises the potential for a short squeeze.

Stocks

Related: Short selling, Short squeeze, Free float

Profiting from a price decline by selling an asset you do not own — typically borrowed shares — and buying it back later, ideally at a lower price. Because a price can in theory rise without limit, losses on an unhedged short position are open-ended. Short sellers also pay borrowing fees and any dividends due on borrowed shares.

Trading & riskStocks

Related: Long position, Short interest, Short squeeze

A rapid price rise that forces short sellers to buy back their positions to limit losses, and that buying pushes the price higher still. Squeezes are most likely in assets with high short interest and limited tradable supply.

Trading & riskStocks

Related: Short selling, Short interest, Free float

The difference between the price expected when an order is placed and the price actually received. It is most common with market and stop orders during volatile conditions, around news releases, or when the order is large relative to available liquidity.

Trading & risk

Related: Liquidity, Market order

A program stored on a blockchain that executes automatically when its conditions are met. Smart contracts power tokens, DeFi applications and NFTs; once deployed, flaws in their code can be exploited and are often hard to fix.

Crypto

Related: DeFi (decentralised finance), Gas fee

An exchange-traded fund that holds actual bitcoin and trades on a stock exchange, letting investors get price exposure through a brokerage account. US regulators approved the first spot bitcoin ETFs in January 2024; their daily creations and redemptions (net flows) are closely watched as a measure of demand.

CryptoStocksBitcoin market page →

Related: Exchange-traded fund (ETF)

The price for immediate delivery of a commodity or asset, as opposed to a futures price for delivery at a later date.

CommoditiesTrading & risk

Related: Futures contract, Contango

A token designed to hold a steady value, usually one US dollar. Most large stablecoins are backed by reserves of cash and short-term government debt; others use crypto collateral or algorithms. A stablecoin is only as stable as its reserves, redemption rights and issuer.

Crypto

Related: DeFi (decentralised finance)

Weak or stagnant economic growth combined with high inflation. It is especially hard for central banks, because raising rates to fight inflation risks deepening the slowdown.

Macro & policy

Related: Inflation, Recession

Locking tokens to help secure a proof-of-stake network in return for rewards, either directly as a validator or through an exchange or staking service. Risks include price falls during any lock-up period, penalties ('slashing') for validator faults and the failure of a third-party provider.

Crypto

Related: Proof of stake

A number that tracks the combined value of a defined group of stocks, used as a benchmark for a market, region or sector. Indices cannot be bought directly; investors use index funds, ETFs, futures, options or CFDs to trade them.

Indices

Related: Market-cap-weighted index, Price-weighted index, Exchange-traded fund (ETF)

Dividing each existing share into several new ones — in a 2-for-1 split, one $200 share becomes two $100 shares. The company's market value does not change; splits mainly make the share price more accessible. A reverse split combines shares instead.

Stocks

Related: Share (stock), Market capitalisation

An order that closes a position once the price reaches a level chosen in advance, capping the loss on a trade. A standard stop becomes a market order when triggered, so in a gap or fast market it can fill worse than the stop level. A trailing stop moves with the price to protect accumulated gains.

Trading & risk

Related: Take-profit order, Risk–reward ratio, Slippage

Price zones where buying (support) or selling (resistance) has repeatedly halted a move. Once a level is decisively broken it often switches role — old resistance can become new support. Round numbers and previous highs and lows are common examples.

Technical analysis

Related: Breakout, Trendline, Fibonacci retracement

A limit order that closes a winning position automatically when the price reaches a pre-set target, locking in the gain without needing to watch the market.

Trading & risk

Related: Stop-loss order, Risk–reward ratio

A tax on imported goods, paid by the importer. Tariffs can raise prices for consumers and businesses, invite retaliation and shift trade flows, which is why tariff announcements move currencies, equities and commodities.

Macro & policy

Related: Inflation

Studying price charts, volume and indicators to judge trends and likely turning points, on the premise that market behaviour tends to repeat. It is often combined with fundamental analysis, which focuses on the economic or business drivers of value.

Technical analysis

Related: Fundamental analysis, Support and resistance, Moving average

The supply-and-demand design of a token: total and circulating supply, issuance schedule, unlock dates for team and investor allocations, and what the token is actually used for. Large scheduled unlocks can add selling pressure.

Crypto

Related: Altcoin, Market capitalisation

The return investors earn on US government debt, which moves inversely to bond prices. The 10-year yield is a reference rate for mortgages and for valuing stocks; the 2-year yield is the most sensitive to expected Fed policy.

Macro & policy

Related: Yield curve, Real interest rate, Basis point

A line drawn across successive higher lows (in an uptrend) or lower highs (in a downtrend) to show the direction and slope of a trend. A clean break of the line can signal that the trend is weakening.

Technical analysis

Related: Support and resistance, Breakout

The standard unit for precious metals, equal to about 31.1 grams — heavier than the everyday (avoirdupois) ounce of about 28.35 grams. Gold and silver prices are quoted in US dollars per troy ounce.

CommoditiesGold market page →

Related: Gold (XAU)

The share of the labour force that is without a job and actively looking for one. Together with payrolls and wage growth it is used to judge how tight the labour market is.

Macro & policy

Related: Nonfarm payrolls (NFP), Initial jobless claims

An index of the US dollar's value against a basket of six currencies: the euro (the largest weight, about 58%), Japanese yen, British pound, Canadian dollar, Swedish krona and Swiss franc. It is a quick gauge of broad dollar strength, though its heavy euro weighting means it is not a full trade-weighted measure.

ForexMacro & policyUS Dollar Index market page →

Related: Exchange rate

The Cboe Volatility Index, which estimates the market's expectation of S&P 500 volatility over the next 30 days from S&P 500 option prices. It usually rises when stocks fall, earning it the nickname 'fear gauge'. It is quoted in annualised percentage points.

IndicesTrading & riskCBOE Volatility Index market page →

Related: Volatility, Options, Risk-on / risk-off

The size and speed of price changes, commonly measured as the annualised standard deviation of returns. Historical (realised) volatility looks at past moves; implied volatility is the level priced into options. Higher volatility means wider potential swings in both directions, which is why position sizes are often reduced when it rises.

Trading & risk

Related: VIX, Beta, Position sizing

The number of shares, contracts or coins traded over a period. Technical analysts look for volume to confirm price moves — a breakout on heavy volume is generally considered more reliable than one on light volume.

Trading & riskTechnical analysis

Related: Liquidity, Breakout

West Texas Intermediate, a light, sweet (low-sulphur) US crude oil and the main US price benchmark. Its NYMEX futures contract is delivered at Cushing, Oklahoma.

CommoditiesWTI Crude Oil market page →

Related: Brent crude, OPEC+, EIA inventory report

A plot of bond yields across maturities. It normally slopes upward because lenders demand more to lend for longer. When short-term yields rise above long-term ones the curve is 'inverted' — a pattern that has preceded most US recessions, though with variable and sometimes long lags.

Macro & policy

Related: Treasury yield, Recession

Moving crypto between DeFi protocols to collect fees, interest and token incentives. Advertised yields can be high but are often variable and paid in volatile tokens, and they come with smart-contract and liquidity risks.

Crypto

Related: DeFi (decentralised finance), Liquidity pool, Staking