To increase your understanding of trading terminology, we have gathered the most important terms and definitions that you may encounter on your trading journey.
Undervalued is a financial term referring to a security or other type of investment that is selling for a price presumed to be below the investment's true intrinsic value.
The specific futures contract that the option conveys the right to buy (in case of a call) or sell (in the case of a put).
The percentage of people within the labour force who are considered to be without jobs.
Additional amount of money needed by a broker to make up for losses when the balance drops below the required minimum level due to adverse price movements.
A measure of the rate of fluctuation of the price of a financial instrument over a period of time. Volatility can either be measured by using the standard deviation or variance between returns from that same security or market index. Commonly, the higher the volatility, the riskier the security.
The number of purchases and sales of futures contracts made during a specified period of time, often the total transactions for one trading day.
A wallet is simply somewhere that you can keep your cryptocurrency holdings.
The electronic transfer of money from one financial institution to another.
A day on which the banks in a currency's principal financial centre are open for business.
The currency of Japan.
Yield is the return on an investment and is usually expressed as a percentage.
The currency symbol of the South African Rand.