Financial Glossary for Traders & Investors

Explore the key trading and market terms and their meanings in this comprehensive glossary. Whether you're new to trading or looking to refine your knowledge, our financial glossary provides clear definitions of essential terminology used across global markets. From fundamental concepts to advanced trading strategies, discover the language of finance and enhance your understanding of the markets you trade.

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

C

Gives the right, not the obligation, to buy an asset at a set strike price.

A bar chart showing the open, high, low and close prices over a specific period.

The profit gained from selling an asset above purchase cost.

A government institution that controls a country's monetary policy, sets interest rates and controls money supply to maintain price stability. Read more.

A tradeable raw material or agricultural product, such as oil, wheat, or gold.

The month in which a futures contract expires. Futures contracts are named by their expiration month (e.g., ESU25 = E-mini S&P 500, September 2025).

The standard quantity of an underlying asset that one contract represents.

The degree to which the prices of two or more assets move simultaneously.

The act of buying back shares to close a short position.

An estimate of the change in the prices of everyday goods and services over time, showing inflation levels. Read more.

Options strategy - purchasing one option and selling another another one in the same class but with different strike prices.

A forex pair that consists of two currencies other than the U.S. dollar.

A financial institution, typically a bank that holds and safeguards clients’ assets such as securities.

Financial Glossary for Traders & Investors

C

Call Option

Candlestick

Capital Gain

Central Bank

Commodity

Contract Month (Delivery Month)

Contract Size

Correlation

Cover

CPI

Credit Spread

Cross Currency Pair

Custodian