Glossary – Trading
There are 25 names in this directory beginning with the letter T.
T/P
Stands for “take profit.” Refers to limit orders that look to sell above the level that was bought, or buy back below the level that was sold.
Technical analysis
The process by which charts of past price patterns are studied for clues as to the direction of future price movements.
Ten (10) yr.
For example: US 10-year note – US government issued debt which is repayable in ten years.
Thin
Illiquid, slippery, or choppy market environment. A light volume market that produces erratic trading conditions.
Thirty (30) yr.
For example: UK 30-year gilt – UK government issued debt which is repayable in 30 years.
Tomorrow next (Tom/Next)
Simultaneous buying and selling of a currency for delivery the following day.
Trade balance
Measures the difference in value between imported and exported goods and services. Nations with trade surpluses (exports greater than imports), such as Japan, tend to see their currencies appreciate, while countries with trade deficits (imports greater than exports), such as the US, tend to see their currencies weaken.
Trading bid
A pair is acting strong and/or moving higher; bids keep entering the market and pushing prices up.
Trading heavy
A market that feels like it wants to move lower, usually associated with an offered market that will not rally despite buying attempts.
Trading offered
A pair is acting weak and/or moving lower, and offers to sell keep coming into the market.
Trading range
The range between the highest and lowest price of a stock usually expressed with reference to a period of time. For example: 52-week trading range.
Trailing stop
A trailing stop allows a trade to continue to gain in value when the market price moves in a favorable direction, but automatically closes the trade if the market price suddenly moves in an unfavorable direction by a specified distance. Placing contingent orders may not necessarily limit your losses.
Trend
Price movement that produces a net change in value. An uptrend is identified by higher highs and higher lows. A downtrend is identified by lower highs and lower lows.
