Trading Terms

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• Arbit rage : TBD

• Bear : A Market player believing that the Market will fall. Bears will SELL before buying at a lower price for a Profit.

• Bearish : Holding a belief that prices will fall. Bearish Traders will push the Market lower.

• Bear Market : Defines a Market in which prices have been falling for a certain period of time. Opposite to a Bull Market.

• Breakout : TBD

• Broadening : TBD

• B/S : Buy after Sell Limit Order. TBD.

• Bull : A Market player believing that the Market will rise. Bears will BUY before selling at a higher price for a Profit.

• Bullish : Holding a belief that prices will raise. Bullish Traders will push the Market higher.

• Bull Market : Defines a Market in which prices have been raising for a certain period of time. Opposite to a Bear Market.

• Bushel : A measure of Volume for Agricultural Futures.

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• Cereals : Commonly traded crops such as wheat, oats, barley, rye, rice, maize (corn), millet and sorghum.

• CFTC: Commodities Futures Trading Commission. The US government agency responsible for regulating domestic futures and options exchanges and their members. www.cftc.gov

• Commodity : A natural raw material.
• Oil and Gas
• Metals
• Grains or Oilseeds
• Soft commodities such as sugar, cocoa, coffee and tea
• Plantation crops such as rubber, palm oil, cotton and wool
  
  

• Consumer Confidence : Consumption is a major influence on the economy. The willingness of consumers to spend is closely watched as a main indicator for future economic performance. It is measured by an index.

• Consumer Price Index, CPI : A measure of retail inflation. It is calculated by collecting and comparing the prices of a set basket of goods and services, as bought by a typical consumer, at regular intervals over time. Also known as Retail Price Index. Many US and European Contracts available on StrategyBot are periodically deeply affected by the report of the Consumer Confidence Index.

• Convergence : The process by which a Futures price moves towards the price of the underlying as expiry approaches.

• Crash : A steep fall in economic conditions or asset prices, such as the Wall Street Crash of 1929 or in 1197 in Asia or in 2000. A crash leads to a sudden fall in confidence in investment and the economy. Consumption and investments are reduced as debts used to borrow in order to buy previous assets are tried to be repaid. Crash leads to further drops in demand for credit and threatens the overall level of the economic activity. Crash create Bearish market.

• CSCE : The Coffee, Sugar and Cocoa Exchange is a New York Futures market that trades contracts in these 3 commodities. www.csce.com

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• Derivatives :

• DJIA : Dow Jones Industrial Average. Based on 30 of the largest US Stocks traded on NYSE Exchange.

• Downtrend : Falling trend of the market. Usually defined in Technical Analysis upon 4 consecutive price points.

• Equity : Equity markets cover shares or stocks.

• EU : European Union

• EUREX : The European Derivatives Exchange www.eurexchange.com

• Euro : The EU’s single currency introduced in 1999.

• Euronext : A European Exchange created by Amsterdam, Brussels and Paris. www.euronext.xom

• EuroStoxx : Dow Jones EuroStoxx 50 is an index tracking European stock markets. www.djindexes.com

• Exchange : An organization providing a safe environment for trading. Regulated Exchanges have approved members and set of rules.

• Contract (Exchange Traded) : Futures or Options listed and traded on an Exchange. The opposite to Over-the-Counter.

• Expiry Date : Date on which delivery happens on a Futures Contract.

• Exponential Moving Average : A weighted moving average indicator that gives more weight to recent price movement.

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• Fibonacci numbers : A number sequence discovered by a Mathematician. It is used in Technical Analysis to determine Price objectives from percentage retracements of a market.

• Fill or Kill (FOK) : An order to Buy or Sell that must be cancelled if not executed immediately.

• Financial Centre : where most of the Financial Institutions, International and Domestic, Commercial or Governmental, of a country are located. Mostly in a capital, such as Tokyo, Paris, Amsterdam, Brussels, London but in many countries this centre is not located in a capital such as New York, Chicago, Sydney, Hong Kong, Milan, Frankfurt, Toronto, Osaka.

• Forex : Abbreviation used for “Foreign Exchange”
  

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To be continued