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 4 names in this directory beginning with the letter X.

X-efficiency

This term refers to the degree of efficiency maintained by firms under conditions of imperfect competition. Efficiency in this context means a company getting the maximum outputs from its inputs, which includes employee productivity and manufacturing efficiency.

It is symbol used to signify that a security is trading ex-dividend. It tells investors key information about a specific security in a stock quote.

Xenocurrency

This term refers to any currency traded in markets outside of domestic borders.

XTR

It is an extension printed after the ticker symbol for a stock. It indicates that the stock is trading on an ex-rights basis, which means that the buyer of the stock does not have the rights to purchase more shares at a lower price anymore because those rights have expired.