Basis point - a designation of the unit of measurement by which changes between two percent are calculated - it can also be called "bp", which means "bip" or "beep" in English. The value of the base point is one-hundredth of one percent or 0.01 percent.
Broker - a third-party independent entity or company that organizes and implements transactions on behalf of the other party. They have a variety of different asset classes at their disposal, including stocks, forex, real estate, and insurance. Typically, the broker will charge a fee for completing the order.
Acquisition of a financial instrument implies a transfer of title to it from another person, both in respect of goods and in respect of shares or other assets.
Bonds are a form of financial investment that consists of providing money to an institution for a specific period of time. Depending on the type of institution to which you are lending money to, they are usually issued in two ways: commercial bonds and government bonds.
In the area of trading and investment, the rate is the amount that can be paid to acquire a financial instrument.
Bulls are stock speculators who assume that a market, financial instrument or sector is developing on an upward trajectory. This attitude puts them in contradiction with bears who think that the market direction is pessimistic.
The beta indicator of a financial instrument is a measure of risk or volatility in comparison with a wider market.
A bearish trading style implies that a market, an asset or a financial instrument will move in a decreasing trajectory.
Auction market - a platform that promotes competition between buyers and sellers. During the auction, buyers specify the maximum price that they are willing to pay for an asset, while sellers express the lowest price that they would be comfortable to accept.
IG alerts - so-called trading alerts - is the ability to set specific criteria and be notified as soon as these indicators are reached. There are three main types: financial alerts, price alerts, and indicator alerts.
Alpha is a definition of the efficiency of an investment portfolio concerning a benchmark - for example, a stock market index. In other words, it is the degree to which the trader has managed to "beat" the market for a certain time. Depending on its proximity to the market, the alpha index can be positive or negative.
When a trader redeems an asset, the price falls, and if the trader buys more, this is considered a down-average.
This is called an averaging down because the average price of an asset or a trading instrument has been lowered. As a result, the point at which trading becomes profitable has also been reduced.
In trade, the concept of base currency has two main meanings: the first currency listed in the forex pair or the accounting currency used by banks and other companies.
Automated trading – commonly defined as computational trade – is the use of algorithms to organize transactions.
Amortization is the method used to allocate loan repayments or the price of an intangible property over a defined period of time. It is generally a certain number of months or years, based on conditions set by banks or copyright agencies. Depreciation often relates to the payment of interest, which is set at the discretion of the creditor.
American Depositary Receipt (or ADR, for short). This is a way of allowing shares of foreign companies to be traded in the USA. In this case, the use of their local stock exchanges is not required.
For ADRs to be traded on U.S. exchanges, just like U.S. shares, a financial institution (usually a U.S. bank) buys in bulk a large number of shares of a particular company and then reissues them on the stock exchange.
Acquisitions of companies are made by other companies, usually for growth purposes.
This is done in two ways: aggressive or friendly.
The aggressive way is when one company buys out most of the shares of another company (controlling interest).
Whereas a friendly way is to sell by appointment.
Revaluation reserve is when a company creates an item on its balance sheet for maintaining a reserve account tied to particular assets.
A revenue deficit is when the realized net income is less than the projected net income.
A short put is when a trader opens an options trade by selling or writing a put option.