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Trading Terms

Equity Index

In the world of finance, we often use a tool called the stock index to gauge the performance of a group of stocks in the market. This index is a weighted average, meaning that the stocks with a higher market value have a greater impact on the overall index. By tracking the movement of this index, we can get a sense of how the selected stocks are faring in the market.

Option

A financial agreement granting the choice, but not the obligation, to purchase or sell a predetermined quantity of a security during a designated timeframe. This type of con...

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Scalp

Commodity trading involves buying and selling equal amounts of a particular asset to avoid having a net position at the end of the day. This is known as a "round trip" trade...

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Open account

Trade transactions often involve a method of payment called open account. This is when a supplier sends goods to a buyer and the buyer credits the supplier's account with th...

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Major Auction

When we talk about the market, we often refer to its overall trend, which can be depicted on a bar chart. This chart shows the performance of a particular market over a give...

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