Financial Terms Dictionary - Trading Terminology Explained (Financial Dictionary)

Independently published
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9781521723654
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ISBN13:
9781521723654
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Make Better Financial Decisions - Understand Trading Terms This practical financial dictionary for trading terms helps you understand and comprehend most common trading lingo. It was written with an emphasis to quickly grasp the context without using jargon. Each of the 226 Trading terms is explained in detail and also gives practical examples. It is based on common usage as practiced by financial professionals. Compiled over the last 3 years from questions and feedback to financial articles published by the Wealth Building Course education program. Mastering the Trade This book is useful if you are new to business and finance. It includes most trading terms for businesses, investors and entrepreneurs. It also covers the lingo that was introduced in the financial crisis of 2008 until 2017. With the alphabetical order it makes it quick and easy to find what you are looking for. Financial Dictionary Series Additional financial dictionaries are available in this series. Please also check out: Accounting, Banking, Retirement, Corporate Finance, Economics, Investments, Laws & Regulations, Acronyms & Real Estate. Click on the author name to see them. Example: What is Currency Trading? Currency trading is speculating on the largest financial market on earth. Despite the fact that this is the world's largest, most liquid, and most impressive market, many individual traders do not know much about it. This is mostly because until Internet trading became popular, access to these markets was limited. Only the large banks, multinational businesses, and shadowy hedge funds were able to trade them. Today the currency markets trade 24 hours per day, 6 days per week. This several trillion dollar market trades on every continent. Trillions of dollars per day change hands in the foreign exchange marketplace. All of this combines to make currency trading markets the most easily accessed on earth. This speculative currency trading is not the main reason that the Forex, or Foreign Exchange, markets exist. They were set up to help big international companies change currencies from one kind to another. Many of these corporations need to trade currency constantly to pay for such costs as international goods and services payments, payroll, and acquisitions overseas. Despite the origins of these currency markets, only around 20% of the total market volume comes from these company trades. An incredible 80% of the daily trades in the currency markets are from speculative currency trading hedge funds, large banks, and individual investors who want to take a position on one of the major currency pairs. Currency traders are able to engage in these markets without many of the constraints that plague the stock markets. If individuals believe that the GBP/USD pair will drop dramatically, they are able to short sell as much of the currency pair as they desire. There are no uptick rules with currency trading. There are similarly no position size limits in currency trading. Traders could buy tens of billions of any currency pair if they had the money to cover the trade. There are also no rules on insider trading with this type of currency trading. It does not exist. Economic data in Europe is routinely leaked several days ahead of the official release date. Another way that currency markets are different from stock markets is that there are no commissions in foreign exchange markets. All currency companies are dealers. These dealers take on the counterparty currency in any trade. They earn their money with the spreads between the bid, the cost to buy the currency pair, and the ask, the cost to sell it. Note: This example description is shorted due to publish restrictions. Each term is explained with 600 words and more.
  • | Author: Wesley Crowder|Thomas Herold
  • | Publisher: Independently published
  • | Publication Date: Jun 30, 2017
  • | Number of Pages: 272 pages
  • | Language: English
  • | Binding: Paperback/Reference
  • | ISBN-10: 1521723656
  • | ISBN-13: 9781521723654
Author:
Wesley Crowder|Thomas Herold
Publisher:
Independently published
Publication Date:
Jun 30, 2017
Number of pages:
272 pages
Language:
English
Binding:
Paperback/Reference
ISBN-10:
1521723656
ISBN-13:
9781521723654