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Terminology T-Z

A-D E-H I-N O-S T-Z

T

T/P

Stands for “take profit.” Refers to limit orders that look to sell above the level that was bought, or buy back below the level that was sold.

Takeover

Assuming control of a company by buying its stock.

Technical analysis

The process by which charts of past price patterns are studied for clues as to the direction of future price movements.

Technicians or Techs

Traders who base their trading decisions on technical or charts analysis.

Ten (10) yr.

For example: US 10-year note – US government issued debt which is repayable in ten years.

Thin

Illiquid, slippery, or choppy market environment. A light volume market that produces erratic trading conditions.

Thirty (30) yr.

For example: UK 30-year gilt – UK government issued debt which is repayable in 30 years.

Tick (size)

A minimum change in price, up or down.

Time to maturity

The remaining time until a contract expires.

Tokyo session

09:00 – 18:00 (Tokyo).

Tomorrow next (Tom/Next)

Simultaneous buying and selling of a currency for delivery the following day.

Trade balance

Measures the difference in value between imported and exported goods and services. Nations with trade surpluses (exports greater than imports), such as Japan, tend to see their currencies appreciate, while countries with trade deficits (imports greater than exports), such as the US, tend to see their currencies weaken.

Trade size

The number of units of product in a contract or lot.

Trading bid

A pair is acting strong and/or moving higher; bids keep entering the market and pushing prices up.

Trading halt

A postponement to trading that is not a suspension from trading.

Trading heavy

A market that feels like it wants to move lower, usually associated with an offered market that will not rally despite buying attempts.

Trading offered

A pair is acting weak and/or moving lower, and offers to sell keep coming into the market.

Trading range

The range between the highest and lowest price of a stock usually expressed with reference to a period of time. For example: 52-week trading range.

Trailing stop

A trailing stop allows a trade to continue to gain in value when the market price moves in a favorable direction, but automatically closes the trade if the market price suddenly moves in an unfavorable direction by a specified distance. Placing contingent orders may not necessarily limit your losses.

Transaction cost

The cost of buying or selling a financial product.

Transaction date

The date on which a trade occurs.

Trend

Price movement that produces a net change in value. An uptrend is identified by higher highs and higher lows. A downtrend is identified by lower highs and lower lows.

Turnover

The total money value or volume of all executed transactions in a given time period.

Two-way price

When both a bid and offer rate is quoted for an FX transaction.

TYO10

Symbol for CBOE 10-Year Treasury Yield Index.

N

Ugly

Describing unforgiving market conditions that can be violent and quick.

UK100

A name for the FTSE 100 index.

UK average earnings including bonus/ Excluding bonus

Measures the average wage including/excluding bonuses paid to employees. This is measured QoQ from the previous year.

UK claimant count rate

Measures the number of people claiming unemployment benefits. The claimant count figures tend to be lower than the unemployment data since not all of the unemployed are eligible for benefits.

UK HBOS house price index

Measures the relative level of UK house prices for an indication of trends in UK real estate sector and their implication for overall economic outlook. This index is the longest monthly data series of any UK housing index, put out by the largest UK mortgage lender (Halifax Building Society/Bank of Scotland).

UK jobless claims change

Measures the change in the number of people claiming unemployment benefits over the previous month.

UK manual unit wage costs

Measures the change in total labor cost expended in the production of one unit of output.

UK OIL*

A name for Brent Crude Oil.

UK producers price index input

Measures the rate of inflation experienced by manufacturers when purchasing materials and services. This data is closely scrutinized since it can be a leading indicator of consumer inflation.

UK producers price index output

Measures the rate of inflation experienced by manufacturers when selling goods and services.

Underlying

The actual traded market from where the price of a product is derived.

Unemployment rate

Measures the total workforce that is unemployed and actively seeking employment, measured as the percentage of the labor force.

University of Michigan’s consumer sentiment index

Polls 500 US households each month. The report is issued in a preliminary version mid – month and a final version at the end of the month. Questions revolve around individuals’ attitudes about the US economy. Consumer sentiment is viewed as a proxy for the strength of consumer spending.

Unrealized gain/loss

The theoretical gain or loss on open positions valued at current market rates, as determined by the broker in its sole discretion. Unrealized Gains/Losses become Profits/Losses when the position is closed.

Uptick

A new price quote at a price higher than the preceding quote.

Uptick rule

In the U.S., a regulation whereby a security may not be sold short unless the last trade prior to the short sale was at a price lower than the price at which the short sale is executed.

US30

A name for the Dow Jones index.

US OIL*

A name for WTI Crude Oil.

US prime rate

The interest rate at which US banks will lend to their prime corporate customers.

V

Value date

Also known as the maturity date, it is the date on which counterparts to a financial transaction agree to settle their respective obligations, i.e., exchanging payments. For spot currency transactions, the value date is normally two business days forward.

Variation margin

Funds traders must hold in their accounts to have the required margin necessary to cope with market fluctuations.

VIX or Volatility index

Shows the market’s expectation of 30-day volatility. It is constructed using the implied volatilities of a wide range of S&P 500 index options. The VIX is a widely-used measure of market risk and is often referred to as the “investor fear gauge.”

Volatility

Referring to active markets that often present trade opportunities.

W

Wedge chart pattern

Chart formation that shows a narrowing price range over time, where price highs in an ascending wedge are incrementally less, or in a descending wedge, price declines are incrementally smaller. Ascending wedges typically conclude with a downside breakout, and descending wedges typically terminate with upside breakouts.

Whipsaw

Slang for a condition of a highly volatile market where a sharp price movement is quickly followed by a sharp reversal.

Wholesale prices

Measures the changes in prices paid by retailers for finished goods. Inflationary pressures typically show up here earlier than the headline retail.

Working order

Where a limit order has been requested but not yet filled.

WSJ

Stands for The Wall Street Journal.

X

XAG/USD

Symbol for Silver Index.

XAU/USD

Symbol for Gold Index.

XAX.X

Symbol for AMEX Composite Index.

Y

Yard

A billion units.

Yield

The percentage return from an investment.

YoY

Abbreviation for year over year.

Yuan

The Yuan is the base unit of currency in China. The Renminbi is the name of the currency in China, where the Yuan is the base unit.

*Not available to US residents.

11:59 22-09-2020