The degree of price variability. A sharp drop or rise in price usually leads to increased volatility. And when the price fluctuates around a certain point for a long time, volatility decreases. Volatility is an important indicator of financial risk management since it reflects the degree of risk when using a particular financial instrument.
- MARKET CORRECTION
Change in asset prices in the opposite direction of the trend. It occurs when a specific financial instrument is overbought or oversold.
Borrowed funds that a broker allocates for trading. The leverage is prescribed in the contract with the broker and depends on many factors: platform used, actual asset, and broker’s conditions. The amount of leverage is calculated concerning the trader’s deposit and can vary from 1: 1 to 1: 2000.
- MARGIN CALL
Broker notification of approaching liquidation level and determination of liquidation procedure. In such a situation, a trader can avoid closing trades by replenishing the balance or deleting part of open orders.
The state of the trader’s deposit in the current period. The balance does not reflect current transactions. After the completion of each trade, the balance changes towards profit or loss.
- FISCAL POLICY
The state system of regulation of the economy through changes in government spending and taxes. Fiscal policy is an important factor in changes in macroeconomic indicators.
- TRUST MANAGEMENT
Agreement between the investor and the manager on the funds in the trading account. In this case, the manager is a professional trader. Trust management enables the investor to receive passive income using the services of a qualified financial specialist. Individuals and legal entities can allocate funds for trust management. Thanks to trust management, even an inexperienced trader can receive a high percentage of return on investment.
Traders who buy assets at a low price with the prospect of selling them at a high price. These market players are looking for undervalued or new assets that, according to their estimates, will grow in the future. This strategy is called “go long”.
Traders who sell assets at a high price to buy them at low prices. Such market players are looking for assets for which the price is expected to decline (for example, due to negative reporting by the Company). This strategy is called “go short”.
- CONTRACTS FOR DIFFERENCE (CFD)
A derivative financial instrument that involves two parties exchanging the difference between the value of a contract upon entering the market and upon exiting the market. Thus, traders can speculate on rising or falling prices in rapidly changing markets.
Worldwide bank transfer system, which makes it possible to make transfers anywhere in the world in any currency. SWIFT transfers are distinguished by the fast transfer of international payments and payment instructions.
- MARKET OPERATIONAL HOURS
The opening times of world markets vary from country to country. Since there is a difference in time zones the world market operates around the clock, opening in turn in each of the regions.
World Stock Exchanges opening times (24-hour format):
NYSE (New York Stock Exchange) 09:30-16:00
TSE (Tokyo Stock Exchange) 09:00-11:30/12:30-15:00
LSE (London Stock Exchange) 08:00-16:30
HKE (Hong Kong Stock Exchange) 09:30-16:00
NSE (National Stock Exchange of India) 09:00-15:30
BM&FBovespa (Bolsa de Valores, Mercadorias& Futuros de Sao Paulo) 10:00-17:00
ASX (Australian Securities Exchange) 10:00-16:00
FWB (Frankfurt Stock Exchange – Deutsche Borse) 08:00-20:00
RTS (Russian Trading System) 09:30-19:00
JSE (Johannesburg Stock Exchange) 08:30-17:00
DIFX (Dubai International Financial Exchange- now NASDAQ Dubai) 10:00-14:00
SSE (Shanghai Stock Exchange) 09:15-11:30/13:00-15:00
NZSX (New Zealand Stock Exchange) 10:00-17:00
TSX (Toronto Stock Exchange) 09:30-16:00