RockGlobal Glossary

Master the Markets: A Comprehensive Guide to Trading Terminology

The ask price is the price at which a market can be bought, and it is usually the higher of the two quoted prices. Full:
In CFD trading, an asset class refers to a specific category of financial instruments that share similar characteristics and behave similarly in the marketplace.
ATR is a volatility indicator that measures the average range of price movement over a set period.
Bank Rate is the main policy interest rate set by a central bank, used to influence borrowing costs, inflation, and overall financial conditions.
The base currency is the first currency in an FX pair and represents the unit being priced.
The bid price is the specific price at which a CFD broker is willing to buy a financial instrument from a trader.
The bid-ask spread is the difference between the bid price and the ask price and is a core trading cost.
A breakout occurs when price moves beyond a well-watched level, often triggering increased activity and volatility.
A breakout happens when price moves beyond a recognised chart level, such as support, resistance, a range boundary, or a trendline.
A bull market is a period where prices trend higher over time, often alongside improving sentiment.
A candlestick shows an instrument’s open, high, low, and close over a chosen time period.
A candlestick chart is a price chart that shows the open, high, low, and close for each chosen timeframe using a single candle.
A CFD is a derivative contract where the profit or loss is based on the price movement of an underlying instrument.
A chart template is a saved chart layout that can store settings such as colours, chart type, indicators, and drawing objects.
A commission is a fee charged on a trade, often separate from the spread.
Contract size is the standardised quantity of the underlying represented by one contract.
Core inflation is an inflation measure that excludes the most volatile price categories, usually food and energy, to help show the underlying trend in consumer prices.
Correlation describes how closely two instruments move in relation to each other over time.
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.

CPI

The Consumers Price Index (CPI) measures the rate of price changes for a "basket" of goods and services purchased by households.
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.
Cross-region consistency is the practice of keeping brand wording, support pathways, and public-facing information aligned across different markets, regions, or jurisdictions.
In the context of Forex CFDs, a Currency Pair is the quotation of two different currencies, with the value of one being measured against the other.
Delta measures how much an option’s price tends to change for a one-unit move in the underlying.
Depth of market shows available buy and sell interest at multiple price levels.
Drawdown is the decline from a peak in account equity to a subsequent low, often used as a risk measure.
An economic calendar lists scheduled data releases and events that can influence market volatility.
Account equity is your balance plus unrealised profit or loss on open positions.
Equity refers to ownership in a company, commonly traded as shares or stocks.
ETF flows describe money moving into or out of an exchange-traded fund over a specific period.
Event risk is the chance of sharp, unpredictable price movement caused by scheduled releases or unexpected headlines that change market expectations.
Execution is the process of completing an order in the market or through the relevant pricing and trading venue.
Execution quality describes how reliably orders are filled at expected prices and speeds under real market conditions.
A failed breakout happens when price moves beyond a recognised level but then moves back inside the previous range or structure.
Overnight financing is a cost or credit applied when a position is held beyond the trading day.
The FOMC is the US Federal Reserve committee responsible for monetary policy decisions.
Forex is the market for exchanging one currency for another, usually traded in pairs.
Free margin is the portion of your account equity available to open new positions or absorb losses.
FX intervention is when a central bank or finance ministry buys or sells a currency to influence its value.
A gap is a price jump where trading moves from one level to another without prints in between.

GDP

GDP measures the total value of goods and services produced by an economy over a set period.
Global presence describes how a company presents and maintains its brand, operations, and client-facing identity across multiple markets, regions, or jurisdictions.
A guaranteed stop is a stop-loss feature designed to cap downside by guaranteeing the exit price, usually for a cost.
A hedge ratio describes how much of one position is used to offset risk in another position.
Hedging is managing risk by reducing exposure to adverse price moves, often using offsetting positions.
High volatility describes markets with larger and faster price swings than usual.
Inflation is the rate at which prices for goods and services rise over time, reducing purchasing power.
Jobs data refers to labour market indicators such as employment growth, unemployment, and wage inflation.
The intervention risk premium is the extra volatility and pricing adjustment markets build in when traders believe official FX action is possible.
Jobs data refers to labour market indicators such as employment growth, unemployment, and wage inflation.
A key level is a price zone widely watched by market participants, often linked to support or resistance.
Leverage allows exposure larger than the capital committed, increasing both potential gains and losses.
A limit order is an instruction to buy or sell at a specified price or better.
Liquidity is the ability to buy or sell without causing a large change in price.
Lot size is a standard unit used to express trade size in many FX and CFD platforms.
Margin is the amount of capital required to open and maintain a leveraged position.
A margin call occurs when account equity falls below required margin levels, prompting action to reduce risk.
Margin level is a measure of account health based on equity relative to used margin.
Market depth reflects the available buy and sell interest at different price levels.
Market noise refers to short-term price movement that may not clearly reflect a broader market direction or theme.
A market order is an instruction to buy or sell immediately at the best available price.
Market structure describes how price movement is organised through highs, lows, ranges, breakouts, pullbacks, and trend behaviour.
Mean reversion is the idea that price can move back toward its typical average after an unusually large move.
Multi-timeframe analysis is the practice of looking at the same market across more than one connected chart timeframe so broader structure and nearer-term movement can be understood together.
News risk is the chance of sharp price movement driven by unexpected headlines or data surprises.
Nonfarm payrolls is the monthly US jobs measure that shows how many jobs were added or lost outside the farming sector.
NY close refers to the end of the New York trading session, often used as a consistent reference point for daily and weekly market performance.
Order flow is the stream of buy and sell orders that helps determine short term price movement.
Order types are instructions that define how and when a trade should be executed.
A partial fill occurs when only part of an order is executed, with the remainder filled later or not at all.
A US inflation measure based on consumer spending data that the Federal Reserve watches closely when assessing price stability.
Personal Consumption Expenditures (PCE) is a US inflation measure that tracks changes in the prices consumers pay for goods and services and is closely watched by the Federal Reserve.
A pipette is a fractional pip used to quote FX prices with more precision.
A pip is a standard unit of price movement in many FX pairs, often the fourth decimal place.
Position size is the amount of exposure taken in a trade and is a key driver of risk.
Position trading is a longer-term trading style focused on broader market trends rather than short-term price fluctuations.
Positioning refers to how market participants are allocated across long and short exposures.
Price formation is the process through which a live market price emerges from buyers, sellers, liquidity, and available market depth interacting in real time.
Price impact is the change in price caused by executing an order, especially in thinner markets.
A profile is an MT5 workspace arrangement that can save multiple open charts and their layout.
A pullback is a temporary move against the prevailing direction inside a broader trend or swing.
The quote currency is the second currency in an FX pair and represents what the pair is priced in.
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.
Relative strength is how one currency is performing compared with another, based on how consistently it is gaining or losing across multiple pairs.
A requote occurs when the originally displayed price is no longer available and a new price is presented.
Resistance is a price area where rising price has previously slowed, paused, or reacted.
A retest happens when price returns to a level it previously moved beyond, often after a breakout.
Risk appetite describes how willing market participants are to hold or add exposure to higher-volatility assets.
A risk premium is the extra return investors demand for holding a riskier asset.
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.
Risk-on and risk-off describe market regimes where investors either seek riskier assets or move into safer ones.
Rollover refers to the process of carrying a position over to the next trading day and applying overnight financing.
A safe haven is an asset that may hold value better during stress, though behaviour can change by regime.
Second-round inflation effects describe a situation where an initial price shock, such as energy, begins feeding into wider wages, services, and business pricing across the economy.
Sentiment describes the prevailing attitude of market participants, ranging from optimistic to cautious, and often influences positioning, volatility, and short-term price behaviour.
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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.