Financial Market Dictionary

  1. Assets- Valuable items or resources that have monetary value.
  2. Barrier to entry-barriers that are set in place that intrude upon a person’s ability to enter the market such as high taxes, governmental issues, or high start up costs.
  3. Bearish (Bear) Market-Declining values in the trade market, which produce a negative projection for the future of an asset.
  4. Binary Options Trading- Binary options or Fixed Option Returns (FRO) offer investors simplified method to trade assets online in order to yield high profits fast. Investors simply select asset pairs or individual assets and predict whether the assets will increase (call) or decrease (put) during an interval between 60-seconds to one-year.
  5. Bonds-Certificates that collect interest, much like loans. Investors provide corporations, government agencies, and other large entities with the option to take out bonds with fixed interest rates.
  6. Bullish (Bull) Market-Assets incline and foster optimistic projections.
  7. Call Option- A trader estimates that an asset will increase its value and gains the right to purchase the option for a mutually agreeable price by the expiration date.
  8. Central Bank-A central bank manages a country’smoney and interest rates.
  9. Commodities- Precious natural resources with monetary value such as agricultural goods, energy resources, and metals (e.g., gold, oil, wheat).
  10. Consolidation-Consolidation in finance is an indecisive period in the market when an asset hovers between the barriers of inclination and declination.
  11. Core Retail Sales-The monthly report that quotes industry retail sales figures.
  12. Currencies-Circulating money such as USD, AUD, GBP.
  13. Currency Pairs-The value of a currency is contingent upon on another currency. The base currency is listed first and its competitor is listed second (e.g., USD/GBP 1.334 signifies that 1 USD is equal to 1.334 GBP).
  14. Current Assets- Assets that can be purchased, sold, consumed, or distributed such as currency or retail items.For this reason, it can only be calculated based on a current balance or owner possession.
  15. Derivatives- Asset value that is derived from a competitor. Derivatives are generally contracts that hedge financial risks by fixing exchange rates.
  16. Divestment-Selling assetsdue to social pressure, issues, government policy, or corporate strategies. A divestment is usually a social statement that one does not want to be associated with a company, individual, or asset.
  17. Equities-Assets that are  owned by individuals.
  18. Expiration Rate- The value of the underlying asset at the expiration time is termed theexpiration rate. This determines if the option expires in the money or out of the money.
  19. Expiration Time- The expiration time is the time and date an asset expires.
  20. Financial Market-A real-time or virtual market where assets can be bought and sold.
  21. Financial Securities-Proof of asset ownership.
  22. Fiscal Policy-The government’s decisions regarding taxes and government spending that is based on the economic situation.
  23. Fixed assets– a holder can obtain value for a specific asset such as real estate for a long period.
  24. Foreign Exchange MarketA currency market.
  25. Futures-A contract that permits traders to fix the asset rate for a date in the future in order to lock in the price regardless of inflation or deflation. Hedging and futures are usually synonymous.
  26. Hedging-Reducing the price fluctuation risks through investment decisions. Hedging and futures are usually synonymous.
  27. Investment-Purchasing an asset with the goals of gaining a profit as the asset increases in value.
  28. In the money- In the money with Glenridge Capital means that made a correct prediction and you can earn up to an 85% profit off of your initial investment.
  29. Indices-a list of statistical measurements that represent market changes such as economic growth or descent. Nasdaq, Dow Jones, and the Nikkei are common examples.
  30. Leading Index- The leading index calculates economic growth by unemployment rates, housing, and other signs of economic stability.
  31. Monetary Policy-The central bank determines the size and growth rate of the country’s money supply.
  32. Nonfarm Payroll (NFP)-A monthly research report issued by the U.S. Bureau of Labor Statistics which statistically represents the amount of employed U.S. workers in most industries with the exception of farmers, non-profit employees who offer services to individuals, people employed in private households, and general government workers. The NFP also documents the average work week and the average weekly earnings of non-farm workers.
  33. Out of the Money-Out of the money with Glenridge Capital means that you made an incorrect prediction and you you may receive up to 10% of your original investment back, depending on the asset.
  34. Put Option- A trader estimates that an asset will decrease its value and gains the right to purchase or sell the option for a mutually agreeable price by the expiration date.
  35. Resistance- As an asset attempts to reach increase its value beyond a specific range; it is met with opposition or resistance. This term is the opposite of support
  36. Retracement- reversal in the direction that assetvalues are moving.
  37. Stocks-A share in a stock is essentially a partial ownership in a corporation or business.
  38. Support-As an asset declines; it is not able to fall below a specific line known as the support.
  39. Trade Balance-The difference in a countries export versus import values.
  40. Volatility-Market uncertainty, which is statistically measured. High values indicate riskier market trends.