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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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Range-bound market

When an asset’s price remains confined within a specific range, lacking noticeable trends or momentum.

Rate hike

An increase in interest rates by a central bank, which can cause the currency of the country to appreciate.

Real effective exchange rate (REER)

A weighted average of a currency’s exchange rate relative to other currencies, adjusted for inflation.

Relative Strength Index (RSI)

A technical indicator, used to analyse the momentum of the price of a security.

Resistance

A level on a price chart at which selling pressure is expected to outweigh buying pressure, resulting in a potential reversal in price movement.

Retail trader

A trader who uses their own funds to participate in the markets, rather than on behalf of an institution.

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