Trading Glossary Explained

Trading is a complex process, which includes many actions that a person unfamiliar with the financial world will find puzzling. Once you launch your trading career, you will be swamped with trading terms whose meaning you will not know. You will not immediately grasp how the market value of a business differs from its book value. Nor will you understand what CPI stands for and how it is different from IPO, unless we supply you with a glossary of all confusing terms that you meet in a trading business.

To help you avoid confusion, we have compiled a comprehensive glossary of financial terms used in the markets. All trading glossary is presented in our glossary in alphabetical order and is explained with linguistic precision. Any financial term that sounds baffling at you now will become crystal clear once you read its definition in our glossary below.

All | # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

There are currently 5 names in this directory beginning with the letter T.

Tangible Assets

These are assets on a company’s balance sheet that have a physical form, including equipment property, machinery, and materials used in production.

Time Value

This term refers to the portion of an option’s premium that is attributable to the amount of time left until the option expires. An investor is ready to pay more for an option with a longer time until expiry, because the option has more time to expire in the money.

Trading Floor

This is where financial instruments such as stocks, bonds, commodities are bought and sold. They are usually electronic.

Treasury Stock

This is the portion of a company’s shares that it keeps in reserve. These shares are not available to the public and do not count towards the total amount of listed outstanding shares.

Trend

This term refers to the time when a market is making sustained moves upwards or downwards. Identifying the beginning and ending of trends is crucial for market analysis. Trends apply to individual assets, sectors, interest rates, and bond yields.