Market Terms

How Liquidity Affects Forex Trading Strategy? ✅ What are Liquid and Illiquid Assets? ➤ Opportunity to Boost your Trades ➤ Join NOW.

DeFi is a blockchain-based form of finance that does not rely on central financial intermediaries such as brokerages, exchanges, or banks to offer traditional financial instruments

Learn how to navigate market cycles with the AvaTrade guide: identify expansion, peak, contraction, and trough phases, and the right timing.

What is a currency swap and What is swap trading? Register at AvaTrade Australia and learn all about swaps in this trading guide.

A drawdown refers to how much an account has fallen from its peak to its trough in terms of capital or investment amount.

Are you wondering if contango is bullish or bearish? Contango is assumed when the forward curve is rising relative to the spot price.

Whenever you trade for real money, there is always the risk loss ☑️ How to reduce your trading risks? ➤ Check us.

Learn about currency pegging (fixed exchange rate) ☑️ Why countries do it? ☑️ How it creates arbitrage opportunities in Forex trading?

Slippage is the difference between a trade’s expected price and the actual price at which the trade is executed. ➤ Read more.

Arbitrage trading allows you to take advantage of price differentials in several markets, by capitalizing off the imbalance. ⭐ Read more.

Read about the different types of assets price correlation (positive ⭐ negative ⭐ uncorrelated) ⭐ Read more.

Carry trading in currency markets ⭐ Learn how to take advantage of interest rate differential when trading Forex. ⭐ Read more.

Volatility is one of the key aspects in financial markets ✅ Learn about types of volatility, Different approaches to calculation & more.

Hedging is an effective strategy to reduce and control investment risks. Visit the AvaTrade education centre to learn more about hedging today!

Gamma squeezes have been a more common occurrence in recent months. They present lucrative opportunities for modern investors. Learn more today!

The HODL meaning is a long-term investment strategy in the financial markets. Learn more about how to HODL and which assets to HODL - AvaTrade Australia

The petrodollar has assisted the USD in dominating the global economy. Learn more with AvaTrade Australia about petrodollar system and its impact on the markets.

Understanding a stock's free float can help investors assess potential trading strategies and manage risk. Learn more now about Free Float with AvaTrade.

A stock market crash is a rapid and steep decline of stock prices that happens unexpectedly. Why do they happen and How long do they last? Read more with AvaTrade.

Learn how to read an options chain with our comprehensive guide. Unlock key insights, manage risk and make informed options trading decisions with confidence.

Dividends are a distribution of earnings or profits to shareholders in one of many possible forms. Learn how they affect share prices from our article!

Stock market indexes provides a glimpse into a country’s economy by looking at how its major corporations are faring ➤ For beginners.

We pay a premium to keep a position open overnight. ⭐ But what happens when the formula involves a negative exchange rate?

Your activities are directed by the time of day ⭐ where in the world is your desired asset up for sale or purchase, & are they awake?

A gearing ratio is a calculation of financial ratio that measures a company's financial leverage or risk level and is used in investment risk assessment. Learn more with AvaTrade Australia.

A meme stock refers to shares of a company that has viral online and garnered massive attention from retail investors. Learn more about them here!

The Sharpe ratio helps investors to assess the performance of a portfolio by taking into account the risks absorbed by the investor. Learn how to use it here!

What are pips and pipettes? ⭐ What does "price move of 20 pips" mean? ⭐ Learn to calculate pip value and position size.

Treynor ratio, also knows as the reward-to-volatility ratio, compares the appeal of different portfolios on a risk-adjusted basis. Learn how to use it now!

A block trade is the purchase or sale of a large number of securities at an arranged price between two parties. Join Avatrade today!

Learn about the different types of price weighting ⭐ Gain an insight into how different cultures measure success and importance.

At the money (ATM), is used to describe the relationship between an option's strike price and the underlying security's price.

Call option means that the strike price is at least $10 less than the underlying asset, or $10 higher for a put option. ⭐ Read more.

In finance, intrinsic value of an asset usually refers to a value calculated value of all expected future cash. ⭐ Read more.

ITM indicates that an option has value in a strike price that is favorable in comparison to the prevailing market price of the underlying asset.

OTM describe an option contract that only contains extrinsic value. ⭐ These options will have a delta of less than 50.0.

Scalping is a day trading strategy that involves opening and closing trades within a short period of time. Read our complete guide for valuable info & tips.

Strike prices are used in derivatives (mainly options) trading. ⭐ Derivatives are financial products whose value is based (derived) on the ...

The various Greek letters are used in the options market to describe parameters of risk when taking an options position. Want to know more? Read our guide!