Glossary

Search the Academy

Look up the meaning of hundreds of trading terms in our comprehensive glossary.

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
  • Day trading
    Making an open and close trade in the same product in one day.
  • Deal
    A term that denotes a trade done at the current market price. It is a live trade as opposed to an order.
  • Dealer
    An individual or firm that acts as a principal or counterpart to a transaction. Principals take one side of a position, hoping to earn a spread (profit) by closing out the position in a subsequent trade with another party. In contrast, a broker is an individual or firm that acts as an intermediary, putting together buyers and sellers for a fee or commission.
  • Dealing spread
    The difference between the buying and selling price of a contract.
  • Defend a level
    Action taken by a trader, or group of traders, to prevent a product from trading at a certain price or price zone, usually because they hold a vested interest in doing so, such as a barrier option.
  • Department of Communities and Local Government (DCLG) UK House Prices
    A monthly survey produced by the DCLG that uses a very large sample of all completed house sales to measure the price trends in the UK real estate market.
  • Deposit rate
    A composite of tradable rates for lending and borrowing a currency over a specific time period (tenor), quoted as a yearly rate. The best bid and offer are taken to present a competitive picture of the cost of borrowing. When a deposit rate is used for financing, the 1-month rate will typically be used for consistency.
  • Derivative
    A financial contract whose value is based on the value of an underlying asset. Some of the most common underlying assets for derivative contracts are indices, equities, commodities and currencies.
  • Divergence
    Divergence occurs when a financial security’s price displays deviation from the indicator you might see on your chart.

    For example, a specific technical indicator might indicate bullish trading conditions, but the price is falling. Alternatively, the indicator might be showing bearish signals, but price is rising. Price is moving in the opposite direction to the trade direction the indicators are suggesting.
  • Dividend
    A dividend is a share of profits and retained earnings a company usually pays out annually to its shareholders – after it’s used a portion to reinvest in the business.

    A dividend is often regarded as a measurement of a company’s health and good management. Mostly profitable or cash rich firms pay out dividends and some investors rely on these annual returns for investment income.
  • Dove
    Dovish refers to data or a policy view that suggests easier monetary policy or lower interest rates. The opposite of hawkish.
  • Dow Jones Industrial Average
    The Dow Jones Industrial Average is an equity index. It tracks the performance of thirty large publicly firms quoted on the NYSE and NASDAQ in the USA. The index also gets called the DJIA and DJIA 30. Many financial brokers refer to the index as the US30 on trading platforms.
  • Downtrend
    A downtrend is a sustained decrease in price over time, which is created when bearish traders (sellers) take control of a market. The chief characteristic of a downtrend is a step-like descent of candlesticks or bars making lower highs and lower lows.
  • DXY$Y
    Symbol for the US Dollar Index.