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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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Purchasing managers’ index (PMI)

A financial metric derived from a survey completed by purchasing managers in the manufacturing sector.

Put option

An option that gives the holder the right, but not the obligation, to sell an underlying asset at a specific price.

Pyramiding

A trading strategy in which a trader adds to a winning position as it moves in their favour.

Quality spread differential (QSD)

The difference in yield between two fixed-income securities of different credit quality.

Quantitative easing (QE)

A monetary policy in which a central bank buys financial assets in order to increase the money supply and stimulate economic growth.

Quantity

The amount of a product being bought or sold in a transaction, more commonly known as a lot.

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