Glossary Of Trading


The practice of opening and closing positions on the same day, primarily used by speculators.

Dealing Desk

Originally the desk at which forex traders in banks sat, today – often referred to as the trading room – the place where trades are facilitated and assets are priced.


A trade balance that is negative as a result of cost (imports, on the national level) being greater than income (exports on the national level).


To place money in an account – usually with the aim of preserving or increasing its value.


A decrease in an asset’s absolute value. This can be as a result of the asset’s deterioration (inherent value) or a lessened demand for that asset or others like it (perceived value).

Depth of Market

The volume of trades being executed at a specific moment on a specific asset.


A contract to trade an underlying asset (or a basket thereof) in the future. Examples of derivatives are CFDs, options, futures and forwards. AN ETF is not a derivative but an independently priced and traded asset – usually at an exchange. A Swap, on the other hand, is a derivative, although its price is not derived from an underlying asset but from the value of cash-flows or interest rates.


A payment by a share issuer to a shareholder derived from the former’s profits.

Dow Jones

A business and financial news & analysis company that publishes the Dow Jones 30 index, which tracks the average value of the 30 major companies traded on the New York Stock Exchange and the NASDAQ.


A chart pattern showing diminishing value and confirmed by sequentially falling highs and lows.