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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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Retracement

A temporary reversal in the direction of a product’s price movement within a larger trend.

Return

The overall gains from an investment.

Return on equity (ROE)

A financial ratio that evaluates the profitability of a company based on the equity invested in it.

Revaluation

A change in the exchange rate of a currency relative to other currencies or a benchmark.

Reversal

A change in the direction of a product’s price movement.

Rho

An indicator of how an option’s price responds to changes in the interest rate.

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