Glossary of Trading Terms and Definitions For Beginners

The exchange rate of the British pound sterling (GBP) and the US dollar (USD) is referred to as "cable" in colloquial language. The term is commonly used by Forex traders. Alternatively, the term can refer to the pound sterling in the United Kingdom. The term "cable" refers to the initial telegram connections which were used to send exchange quotes as well as other information between New York And London.

Wire transaction refers to an electronic fund transaction that takes place across a network that is managed by financial institutions and transfer service providers all over the globe. Wire transfers require details from the entity requesting the transfer and include information on the sending and receiving entity. These transactions are settled electronically rather than through a physical transfer of money.

The Commodity Futures Trading Commission aka CFTC is defined as an autonomous US government agency, established in 1974, which regulates the country’s derivatives markets, inclusive of futures, swaps, plus specific categories of options.

Call options can help you earn if your prediction about how a stock will transition comes true. When people speak about options and options trading, they are usually talking about strategies that can be applied to buying and selling calls and puts. Today, let me give you an overview of why shareholders transact call options on shares and how that differs from holding stocks directly.

The capital of a business is its resources and funds. Capital can be cash, equipment, accounts receivable, real estate, or apartment buildings. Capital can also mean the money made by a company or organization or the securities of a founder of the company. In this article, we will go deeper into the details of capital accounts – their definition, importance, modus operandi, and a few examples. So, let’s get started!

A bulldog bond is a foreign bond traded in the UK, where the British Bulldog is a national icon, hence the name. The UK, London specifically, remains the global financial center and is home to world-class support infrastructure.

A bull market in finance purchases securities aiming to sell at a higher price and is the opposite of a bear in the ongoing bulls vs. bear battle.

Currency pairings are used to estimate currency unit prices in the forex market. The base currency (also known as transaction currency) is the initial currency mentioned in a currency pair quote, succeeded by the quote currency (also known as the counter currency).

Investors utilize several options (alternatives) to attempt to profit by predicting whether a stock's value would then increase or decline in the future. Such options help investors to make a profit while also leveraging their portfolios.

This is a comprehensive article to give readers an understanding of what balance of trade is, how to calculate it with examples and other knowledge related to balance of trade.

Balance of payments refers to the difference between inflow and outflow of money in a given timeframe. It’s abbreviated to BOP or BoP.

A back-to-back loan is an arrangement between two entities in different countries that act as a hedge against currency risk.

The Back Office comprises the administrative sections of an office that enables the front office and the middle office to function well.

Understanding the break-even point definition is essential for companies, chief operating officers, and accountants. It is also crucial for traders and investors. Without knowing the break-even point (BEP) of a product, service, trade, or investment, any operations will lack efficiency and could operate at an underlying loss despite showing an overlying profit.

Economic, social, and geopolitical issues governed the interwar period, from the end of World War I to the start of World War II. In July 1944, 730 delegates from forty-four allied nations met in Bretton Woods, New Hampshire, USA, during the United Nations Monetary and Financial Conference, aiming to avoid mistakes from the Treaty of Versailles, which ultimately led to World War II, and to eliminate the “beggar thy neighbor” policies.