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Trading Glossary

Glossary trade refers to a type of trading strategy where traders use a predefined set of terms, definitions, or concepts to make informed decisions. It often involves industry-specific jargon, financial metrics, and analytical tools to navigate markets effectively.

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Dow Jones Industrial Average (DJIA)

One of the oldest indices that monitors the performance of 30 blue-chip companies in the US. It is a price-weighted index, commonly referred to as “the Dow”.

Dragonfly doji

A candlestick pattern that forms when there is a significant decline in the asset’s price, signifying short-term selling pressure, followed by a rebound back up to the opening price within the same trading period.

Drawdown

The peak-to-trough decline in the value of an investment or trading account.

Due diligence

The process of investigating and analysing a company or investment opportunity before making a decision to invest.

Duration

The measure of a bond’s sensitivity to changes in interest rates.

E-mini

A smaller version of a futures contract, traded on an electronic exchange.

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