The online trading glossary

The terms to know and to deepen in order to become familiar with the field of trading at the operational level

Stefano Calicchio

• Publisher: Stefano Calicchio
• Year: 2020
• Topic: Business
• eBook ISBN:
  9791220206419
• Subtopic: Business General
• Index: Business

How does a breakout work? What role do rumors play in financial market prices? Knowing how to answer such questions is essential for those who want to develop their trading activity. For the first time, a comprehensive and accessible glossary helps you to do so, showing you the basics of how the equipment works. You will discover all the information you need to really understand the financial markets, both from a technical and fundamental point of view. From micro- and macro-economic terminology to the main business strategies based on operational analysis, as well as concepts related to money management and trade management. The reader will learn step by step how to face without hesitation the specialized terms used in the global market and how to understand any financial instrument through its essential characteristics. Forget the ineffective theoretical dictionaries of thousands of pages sold at astronomical prices on the web and finally enjoy a reading that will give you the know-how you are looking for at an unbeatable price.

Self-test - evaluative

This glossary ends with an invitation to action! The following questionnaire is designed to help the reader consolidate the theoretical and practical notions that have just been presented, through an exercise that is both fun and formative. Knowing and understanding the functioning of financial markets and its areas of application can be quite difficult on first reading.

The test is designed to go back over some of the most important terms in this guide, in order to consolidate the fundamental concepts. Below is a series of multiple-choice questions that you will be asked to answer with the correct phrase. At the end, you will be able to read the answers to the questions.

1 - What is the basis of fundamental analysis?

a) Fundamental analysis is based on the study of historical price series.

b) Fundamental analysis bases its forecasting capabilities on the collection of data and financial information on the companies, firms and organizations that are the subject of its studies.

c) Fundamental analysis bases its forecasting capabilities on the financial policy decisions taken by institutional operators.

d) Fundamental analysis bases its forecasting capabilities on the sentiment of market participants.

2 - What is financial arbitration?

(a) Financial arbitrage is a trading technique that involves buying a certain financial instrument in one market (A) and selling it in another market (B) at a higher price.

b) Financial arbitrage is a negotiating technique that bases its strategies on the inconsistencies that occur in the financial statements of listed companies.

c) Financial arbitrage is a commercial technique that bases its strategies on buying particularly poorly rated debts and then tries to recover them by legal means.

d) None of the above.

3 - What is a speculative bubble?

a) A speculative bubble represents a particular market situation in which purchases made by institutional operators prevail.

b) A speculative bubble represents a lateral phase of the market in which prices and volatility tend to compress.

c) A speculative bubble represents a particular market situation in which widespread irrational buying prevails.

d) A speculative bubble represents a technical scheme capable of suggesting the opening of profitable businesses.

4 - What is a deposit?

a) A bond is a derivative instrument used to take advantage of the performance of an underlying asset.

b) A bond is a debt security issued by a company or public body.

c) A bond is a balance sheet index used to summarize the value of assets held by a company or institution.

d) A bond is a special type of share that does not give the right to vote at shareholders' meetings but which offers a higher dividend than ordinary shares.

5 - What is an escape?

a) A break is a very common figure in technical analysis, which consists of breaking or lowering a significant price level.

b) It is a technical term indicating low market volatility.

c) Braking is a phas...

Table of contents

• Cover
• THE ONLINE TRADING GLOSSARY
• Table of contents
• Disclaimer
• How this book works
• Cyclical analysis
• Fundamental analysis
• Technical analysis
• Arbitration
• Bear market
• Benchmark
• Speculative bubble
• Bollinger band
• Bond or bond instruments
• Breakeven
• Breakout or breaking point
• Price Chain
• Candlestick or Japanese candles
• Capitalization
• Commodities and raw materials
• Cover
• Day trading
• Derived from
• Dividend
• Doji or shadow candles
• Double maximum / minimum
• Leverage effect
• Bankruptcy
• False signals
• Fibonacci
• Floating
• Future
• Gann Trading
• Standard table
• Bar chart
• Candlestick chart
• Hedge fund
• Hedging
• Indicators
• Insider trading
• Intraday trading
• Trend reversal
• Hyper-purchased
• Hyper sold
• IPO or Initial Public Offering
• Long
• Trading Margin
• Strong Hands
• Market Maker
• Mobile Media
• Downward Mediation
• Momentum
• Money Management
• Neckline
• Tender Offer
• Options
• Panic Selling
• Paper Trading
• Price Pattern
• Profit taking
• Profit warning
• Psychology of trading
• Rally
• Resistance
• Risk of ruin
• Rumors
• Scalping
• Sentiment
• Short trading
• Spread
• Stochastic
• Stop loss
• Support
• Tick
• Market Timing
• Tradestation
• Trading range
• Trading System
• Trailing stop
• Trend (up or down)
• Trend Following
• Trendline
• Venture capitalist
• Vulture Fund
• Volatility
• Volume
• Conclusion
• Self-test - evaluative