Trading Glossary
Master the language of the markets. A comprehensive directory of trading terms used throughout Trade IQ.
Alpha
A measure of the active return on an investment, the performance of that investment compared with a suitable market index.
Fundamental Analysis
A method of measuring a security's intrinsic value by examining related economic and financial factors including earnings, assets, and liabilities.
MACD (Moving Average Convergence Divergence)
A trend-following momentum indicator that shows the relationship between two moving averages of a security’s price.
Moving Average
A widely used indicator in technical analysis that helps smooth out price action by filtering out the “noise” from random short-term price fluctuations.
RSI (Relative Strength Index)
A momentum indicator that measures the magnitude of recent price changes to evaluate overbought or oversold conditions in the price of a stock.
Sentiment Analysis
The process of using natural language processing (NLP) to determine whether market data (news, social media, reports) is positive, negative, or neutral.
Technical Indicators
Mathematical calculations based on the price, volume, or open interest of a security or contract used by traders who follow technical analysis.
Volatility
A statistical measure of the dispersion of returns for a given security or market index. It is often measured as either the deviation or variance between returns.
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