Education

1 Common Terms

1. VOLATILITY

A statistical indicator that characterizes the degree of price volatility. An important financial indicator that displays the measure of the risk of using a financial instrument for a given period. Volatility is expressed in absolute or relative value from the initial value.

2. MARKET CORRECTION

Price movement in the opposite direction relative to the main current trend. Occurs due to overbought or oversold financial instrument.

3. LEVERAGE

Borrowing capital from a broker to increase investment returns. For example, with $200,000 in the account, a trader can manage $10,000,000 (the leverage is 1:50).

4. MARGIN CALL

The situation when the balance of free margin dries up and the transaction can be closed by the broker without the participation of the trader. To avoid closing, the trader can replenish the account or close part of the open trades.

5. BALANCE

The status of the trader’s deposit, which does not take into account current operations. After the completion of each transaction, the state of the balance changes. If there is a profit in the transaction, the balance amount increases, if the transaction is unprofitable, the balance amount decreases.

6. FISCAL POLICY

Government measures to stabilize the economy. Such measures are carried out by changing the number of revenues and/or expenditures of the state budget.

7. TRUST MANAGEMENT

The process of managing money or securities with the transfer of rights. The investor transfers the rights to manage capital to a professional manager to increase income. The asset management service allows you to receive high income by investing in various financial market instruments and competent portfolio management of such instruments. The manager’s fee is usually a percentage of the profits.

8. BULLS

Market participants who buy financial instruments with growth potential in the future. The main task of the bull is to buy assets cheaply with further resale at high prices. This operation is called “opening a long position”.

9. BEARS

Market participants that sell securities with the potential to lower their prices in the future. For example, when a company expects negative reporting or a financial instrument goes into a crisis period. The main task of the bears is to sell at a high price with the subsequent purchase of assets at low prices. This operation is called “opening a short position”.

10. CFDs

An agreement on the exchange of the difference in the value of a particular asset from the moment the contract is opened until the moment it is closed. With CFD trading, traders speculate on rising or falling prices in rapidly changing markets.

11. SWIFT

The international electronic system of instant money transfers. SWIFT payments guarantee the complete security of the transfer and minimize the risk of losing money. With SWIFT, you can quickly transfer funds around the world in any currency.

12. MARKET IS OPEN

Opening time of world markets after weekends or holidays. Market opening times vary from country to country and depend on the time zone and start time of the business day. Due to the difference in time zones, it can be said that the market works around the clock, as it opens in turn in different regions.

World Stock Exchanges Trading Hours (24-hour format) Monday – Friday:

  • • NYSE (New York Stock Exchange) 04:00-20:00;
  • • 04:00-09:30 Pre-Trading Session;
  • • 09:30-16:00 Core Trading Hours;
  • • 16:00-20:00 Extended Hours;
  • • JPX (Tokyo Stock Exchange) 09:00-15:00;
  • • 09:00-11:30 Morning Session;
  • • 12:30-15:00 Afternoon Session;
  • • LSE (London Stock Exchange) 05:05-17:15;
  • • 05:05-07:50 Pre-Trading;
  • • 08:00-12:00 Regular Trading;
  • • 12:02-16:30 Regular Trading;
  • • 16:40-17:15 Post Closure;
  • • HKEX (Hong Kong Stock Exchange) 09:00-16:00;
  • • 09:00-09:30 Opening Session;
  • • 09:30-12:00 Morning Trading Session;
  • • 13:00-16:00 Afternoon Trading Session;
  • • NSE (India National Stock Exchange) 09:15-15:30;
  • • Bovespa (Brazil Stock Exchange) 10:00-16:00;
  • • 10:00-16:55 Trading Session;
  • • 17:30-16:00 After Market Trading Session;
  • • ASX (Australian Stock Exchange) 07:00-18:50;
  • • 07:00-10:00 Pre-opening Phase;
  • • 10:00-16:00 Normal Trading;
  • • 16:12-18:50 Overnight Trading;
  • • FWB (Frankfurt Stock Exchange – Deutsche Boerse) 09:00-17:30;
  • • JSE (Johannesburg Stock Exchange) 09:00-17:00;
  • • NDXB (NASDAQ Dubai) 10:00-15:00;
  • • 10:00-14:45 Continuous Trading;
  • • 14:55-15:00 Trading at Last;
  • • SSE (Shanghai Stock Exchange) 09:15-15:30;
  • • 09:15-09:25 Opening Session;
  • • 09:30-11:30 Morning Trading Session;
  • • 13:00-15:00 Afternoon Trading Session;
  • • 15:00-15:30 Extended Hours;
  • • NZX (New Zealand Stock Exchange) 10:00-16:45;
  • • TSX (Toronto Stock Exchange) 09:30-17:00;
  • • 09:30-16:00 Continuous Trading;
  • • 16:15-17:00 Extended Hours.