The commission is the charge levied by an investment broker for making trades on a trader’s behalf.

An asset’s closing price is the last level at which it was traded on any given day. This price is often determined by an auction.

A chartist is a trader who relies predominantly on charts to help them understand a financial instrument’s historical price movements, in order to better predict and to speculate on its future performance. They are also commonly known as technical analysts or technical traders.

Cash flow is the amount of money coming into and going out of a company’s accounts, as reported in earnings announcements. It can refer to a single project or the entire business.

When a market, instrument or sector is on an upward trend, it is generally referred to as a bull market.

Bond trading is one way of making a profit from fluctuations in the value of corporate or government bonds. Many view it as an essential part of a diversified trading portfolio, alongside stocks and cash.

When the market is on a sustained downward trajectory, with little optimism from traders to bring about a rally, it is referred to as a bear market.

A base rate is the interest rate that a central bank – such as the Bank of England or Federal Reserve – will charge commercial banks for loans. The base rate is also known as the bank rate or the base interest rate.

At the money (ATM) is a term used to describe an options contract with a strike price that is identical to the underlying market price. At the money, options see a lot of trading activity, because they are so close to becoming profitable.

An asset is an economic resource that can be owned or controlled to return a profit or a future benefit. In financial trading, the term asset relates to what is being exchanged on markets, such as stocks, bonds, currencies or commodities.

An asset class is a category of financial instruments - these can be physical assets or financial assets. The instruments are grouped into asset classes based on whether they show similar characteristics, behave in the same way on the market, or are governed by the same laws and regulations.

The ask refers to the price at which you can buy an asset or security from a seller. It can be variously referred to as ask, the ask, or asking price.

An annual general meeting (AGM) is a yearly gathering between the shareholders of a company and its board of directors. Generally, this is the only time that the directors and shareholders will meet throughout the year, so it is a chance for the directors to present the company’s annual report.

Bollinger bands are a popular form of technical price indicator. They are made up of an upper and lower band, set either side of a simple moving average (SMA). Each band is plotted two standard deviations away from the SMA of the market, and they are capable of highlighting areas of support and resistance.

While book value reflects what a business is worth according to its financials (its books), market value is the worth of a company according to financial markets – also known as its market capitalization. The calculation for market value is the current market price per share multiplied by the total number of outstanding shares.

RSI stands for the relative strength index. It is a key tool used in technical analysis, assessing the momentum of assets to gauge whether they are in overbought or oversold territory.

In trading, a rollover is a process of keeping a position open beyond its expiry.

Return on capital employed, or ROCE is a long-term profitability ratio that measures how effectively a company uses its capital. The metric tells you the profit generated by each dollar (or other units of currency) employed.