Market Definitions

Playing Markets

Index Mutual Fund

A portfolio of stocks or bonds intentionally designed to match the makeup and performance of a financial market index.  Based on the theory that...

IMF

The IMF (or International Monetary Fund) is an organization comprised of 190 member countries working to ensure international monetary stability. ...

Depth Chart

A visual rendition of the supply and demand of a specific asset.  A depth chart displays both buy and sell orders of an asset to allow a trader or...

Hedge Fund

An alternate means of investing that make use of non-traditional and varying investment strategies for a restricted (and often high-income) client...

Hedge

In trading, hedging is opening a position that runs contrary to an existing position.  The main reasons to hedge a position are to protect profit...

Future

An agreement to buy a specified asset on a specified date for a specified price.  Future contracts are sold on a futures market and are a common...

Forex

A global marketplace where national currencies are exchanged against each other.  A combination of the words "foreign exchange," it functions by...

Dividend

A payment to stockholders who own a specific stock.  Some companies distribute part of their earnings directly to shareholders in the form of money...

Diversification

A technique used by traders and investors to reduce risk of loss.  It is done by allocating investments across many different industries, companies,...

Distribution Pattern

A technical analysis pattern used as part of the Accumulation/Distribution Indicator (A/D).  A bullish stock will display strong signs that it's...

DeFi

A portmanteau of "decentralized finance," DeFi is an umbrella term various decentralized cryptocurrency and blockchain projects aiming to disrupt...

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...