DeFi

A portmanteau of “decentralized finance,” DeFi is an umbrella term various decentralized cryptocurrency and blockchain projects aiming to disrupt financial intermediaries.  DeFi is different from a cryptocurrency using a blockchain model (eg, bitcoin) in...

Capitulation

When investors surrender previous gains by selling their positions on a security during periods of market decline.  A bear market is often a major contributing factor to capitulation.  In theory, many capitulations should signal the end of a bottom, as if many are...

CMF

A Chaikin Money Flow (or CMF) is a technical analysis indicator that is used to measure the Money Flow Volume over a set time-period.  Money Flow Volume is a metric used to determine the buying/selling pressure on a security for a single defined period.  Any period...

Contango

A situation that arises when speculators are willing to pay a futures price that is greater than the expected price of that commodity at the same future point.  This is also referred to as a “normal market” or a “carrying-cost market.”  The...

Asset

Trading assets are collections of securities intended to be sold for a profit.  They are different from investments and generally held in a separate account than the investment portfolio.  Examples of a trading asset are forex rate contracts, mortgage-backed...

Accumulation Pattern

The accumulation/distribution indicator (or A/D) is a cumulative indicator used to provide insight into how strong a trend is.  It uses volume and price to determine if a stock is under accumulation or distribution.  If the price is rising but the indicator is...

Fiat Currency

A form of money that lacks value in-and-of itself (ie, it is not backed by gold, silver, copper, etc).  In contract to commodity money, the value of fiat money is based on supply and demand as well as the credit of the issuing institution.  The money of the United...

Exponential Moving Averages

A form of moving average (or a stock indication commonly used in technical analysis) that applies more significance on more recent data points.  This means that it reacts more significantly and noticeably to price changes than a simple moving average, which applies...

Expected Return

The profit (or loss) that an investor anticipates based on how an asset has behaved historically.  Investors are able to determine these patterns based on the historical Rates of Return.  This figure is calculated by multiplying a potential outcome by the odds of that...

Exchange

A marketplace where securities, commodities, and other financial instruments are traded.  It creates a central platform for traders (from businesses to governments) to sell securities to public investors.  One of the most well-known examples is the New York Stock...