Icon close
change language change language English

The Rise Of STARTRADER

One Of The
World’s Fastest Growing Brokerage

The Rise Of STARTRADER

One Of The
World’s Fastest Growing Brokerage

US

Trading Glossary

Glossary trade refers to a type of trading strategy where traders use a predefined set of terms, definitions, or concepts to make informed decisions. It often involves industry-specific jargon, financial metrics, and analytical tools to navigate markets effectively.

STARTRADER Glossary Financial Icon
All 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

A

Authorized Forex Dealer

A financial entity that has received authorization from a relevant regulatory body to act as a dealer involved with the trading of foreign currencies. 

Dealing with authorized forex dealers ensures that your transactions are being executed in a legal and just way.

Some of the legal regulations that brokers might hold include FCA, ASIC, SCA, among others. The authorization bodies can differ according to jurisdictions.

Automated Forex Trading

Automated forex trading is a system of trading foreign currencies with a computer program based on a set of analyses that help determine whether to buy or sell a currency pair at a given time.

One of the benefits of automated forex trading is that it can execute many orders in no time, and it helps reduce the human emotions involved. 

If one asset goes really high, and there is no automated trading involved, the human might be pushed by greed to sell all the time. However, this deviation from strategy might cause losses in the long run. Nevertheless, the automated trading will just follow the set of rules already assigned.

Automated trading system (ATS)

A computer program that automatically executes trades based on predetermined rules and algorithms.

Average Directional Index (ADX)

Average Directional Index (ADX) is a technical indicator that is used to gauge the strength or weakness of a trend in the financial markets. Regardless whether the trend is going up or down, the ADI gives the traders a good idea about how strong a movement is. Based on that, they can decide whether to enter or exit a position.

Average down

Buying more shares of a security at a lower price to reduce the average cost per share.

Average holding time

The average duration that a trader holds their position open for.

Start trading with A globally leading broker

Want to start trading?

STARTRADER

Online Trading App

Online App Score
Install
Customer Service
Customer Service