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 V.

Valuable Cost

This is a business expense which is subject to change when sales volumes change. This means that valuable costs either increase or decrease depending on the company’s present output.

Value Chain

It is a business model that describes the full range of activities needed to create a product or service.

Variable Cost

This is a corporate expense that changes in proportion to production output. Variable costs decrease or increase depending on a company’s production volume.

Volatility

This term refers to the situation at the market when there is a high likelihood of making major, unforeseen short-price movements at any given time.

Volume

It is the amount of a certain asset that is being traded over a certain period of time. It is often given together with price information, since this information offers another dimension with which traders examine an asset’s price history.