FX trading & currency trading glossary
Popular terms
-
PaidRefers to the offer side of the market dealing.
-
PaneledA very heavy round of selling.
-
Partial fill
A partial fill happens when only a portion of a limit order is executed, the share price surpasses the specified limit order target during the trade. In this instance shares will only be exchanged up to the price on the limit order, and the rest remain unfilled.
-
Patient
Waiting for certain levels or news events to hit the market before entering a position.
-
Physical settlement
A physical settlement requires the option seller to deliver the underlying asset if it’s a call. For puts, the option seller must buy the underlying asset from the buyer at the strike price. Physical settlement is more common for stocks and commodities than other financial securities.
-
PipsThe smallest integer unit of price for any foreign currency.
-
PortfolioA collection of investments owned by an entity.
-
PositionThe net total holdings of a given product.
-
Price transparency
Price transparency is the extent to which all relevant information is available around trading quantities, bid prices, and ask prices of a security so all agents are operating with the same information. Higher transparency allows traders to make better decisions about what securities to invest in and limits barriers to entry.
-
Profit
Profit is the revenue earned for a business activity or transaction after subtracting any related expenses. When analysts look for potential investments, profitability will be a crucial indicator of business health. The most common types of profit are gross profit, operating profit, and net profit.
-
Pullback
A pullback is a moderate drop or a slowdown in an asset or commodity’s price after a continuous upward trend. Because pullbacks are considered a temporary pause before resuming its upward journey, it can offer a great opportunity to invest, especially for traders looking to make an entry into an aggressive market.
-
Purchasing Managers Index services (France, Germany, Eurozone, UK)Measures the outlook of purchasing managers in the service sector. Such managers are surveyed on a number of subjects including employment, production, new orders, supplier deliveries and inventories. Readings above 50 generally indicate expansion, while readings below 50 suggest economic contraction.
-
Put optionPut options are financial contracts that give the owner the right, but not the obligation, to sell an underlying asset at a specified price within a specific time. A buyer of a put can profit when the underlying asset falls in price.