Glossary
Welcome to the Kudotrade Glossary, here you will find clear and concise definitions of key terms and concepts, which are essential for navigating the world of financial markets and trading.
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Daily chart
A chart showing the price changes of an investment or asset over a single day.
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Day order
An order that is only valid on the trading day in which it was placed.
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Day trader
A daily trader that aims to profit from short-term price changes.
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Debt-to-Equity ratio
A financial ratio indicating the relative proportion of shareholders’ equity and debt used to finance a company’s assets.
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Deflation
A decrease in the general price level of goods and services, often associated with a reduction in the supply of money and credit in the economy.
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Diversification
Spreading your capital across different instruments, to help lower the impact of one asset’s performance on your portfolio.
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Dividend
A payment made by a corporation to its shareholders, usually as a distribution of profits. Dividends are typically paid out in cash, but they can also be issued as additional shares of stock or other property.
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Drawdown
The value of an investment or trading account declines from peak to trough.
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Earnings report
Financial statements released displaying the earnings over a certain period.
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Economic calendar
A tool for reporting a country’s economic highlights and data releases, such as GDP, employment figures, and central bank meeting results.
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Equity
The value of the shares issued by a company.
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Exchange
A regulated platform where financial instruments can be traded in a fair and orderly manner.
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Exchange rate
The rate at which one currency is exchanged for a different one, primarily utilised in the foreign exchange market.
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Execution
Completing / placing a trade or order in the market.
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Execution only
A type of service where they will only place trades for clients, with no advice given.
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Face value
The stated value of a security or instrument.
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Fair value
The estimated value of an asset is determined by its market price, financial statements, and other pertinent criteria.
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Fibonacci
Fibonacci retracement and extension levels are technical analysis tools to identify potential support and resistance levels in the market. These levels are derived from the Fibonacci sequence.
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Financial market
Any place where assets or security can be traded, including forex, cryptocurrencies, commodities, indices and many more.
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Financial risk
The risk of loss resulting from changes in market circumstances, interest rates, credit ratings, or other financial factors.
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Fiscal year
A year period that a corporation or organisation employs for financial and accounting purposes, which may or may not correspond to the calendar year.
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Fixed income
Investments that will pay a set level or percentage return.
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Foreign exchange
The global marketplace where currencies are traded. It involves the exchange of one currency for another, and this trading is crucial for international trade and investment.
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FTSE 100
The stock market index that measures the performance of the 100 largest publicly traded companies listed on the London Stock Exchange (LSE) based on market capitalization. The term “FTSE” stands for Financial Times Stock Exchange.
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Fund manager
A professional who is responsible for overseeing and making decisions regarding the investments of a mutual fund, pension fund, hedge fund, or other types of investment portfolios. The primary goal of a fund manager is to achieve the investment objectives of the fund.
