In CFD trading, an asset class refers to a specific category of financial instruments that share similar characteristics and behave similarly in the marketplace.
Correlation describes how closely two instruments move in relation to each other over a period of time, and it can strengthen or break down as market regimes change.
Credit spreads measure the extra yield investors demand to hold corporate or riskier debt over safer benchmarks, and they are widely used as a barometer of risk appetite and financial stress.
A cross currency pair is an FX pair that does not include the US dollar, such as EUR/GBP or AUD/NZD, and it is used to trade the relative value of two non-USD currencies.
Relative strength describes which currency, asset, or market is outperforming others over the same period, helping you compare performance across instruments rather than looking at one chart in isolation.
Risk sentiment describes whether markets are broadly positioned toward higher-risk assets (risk-on) or capital preservation (risk-off), often driven by growth expectations, policy outlooks, and uncertainty.
Risk-off describes a market regime where participants prioritise capital preservation, reduce exposure to higher-risk assets, and favour liquidity and defensive positioning.
Risk-on describes a market regime where participants are comfortable taking risk, often favouring growth and higher-beta assets as confidence improves and risk premiums compress.
Sentiment describes the prevailing attitude of market participants, ranging from optimistic to cautious, and often influences positioning, volatility, and short-term price behaviour.
TINA stands for “There Is No Alternative” and is used to describe periods when investors keep favouring one asset class, often equities, because alternatives appear less attractive.
The US Dollar Index (DXY) is a measure of the US dollar’s value against a basket of major currencies, often used as a quick gauge of broad USD strength or weakness.
USD strength describes periods where the US dollar appreciates broadly against other currencies, often driven by yields, policy expectations, growth differentials, and global risk sentiment.
Risk Notice: Financial markets involve risk, and losses may occur. Information on this website is provided for general informational purposes only and does not constitute financial advice, an offer, or a solicitation. Any reference to financial instruments or markets does not take into account your individual objectives, financial situation, or needs. You should consider seeking independent professional advice before making any financial decisions.
