Glossary
Welcome to the Kudotrade Glossary, here you will find clear and concise definitions of key terms and concepts, which are essential for navigating the world of financial markets and trading.
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Accrued interest
Interest collected on a bond or other fixed-income security since the last interest payment.
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Acquisition
The process of acquiring an asset, which may affect employees, consumers, and shareholders.
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After hours
Trading that happens after the normal market hours.
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Annualised return
Annual return on investment, taking into account the investment’s duration and any changes in value over time.
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Ask price
The lowest price for which a seller will accept a security. It is also referred to as the “offer price” and is always higher than the bid price.
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Asset
An intangible, liquid economic resource that may be traded between individuals and institutions.
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Asset class
A collection of assets that have a similar financial structure.
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Automated trading systems (ATS)
A computer programme that executes transactions according to specified rules and algorithms.
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Average holding time
The average time a trader holds a position open for.
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Balance
total remaining funds in the account.
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Bank Rate
The interest rate at which a central bank lends money to commercial banks and financial institutions within its jurisdiction. It is a key tool used by central banks to control monetary policy, influence economic activity, and manage inflation.
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Bear market
A prolonged period of dropping prices is also known as “bearish”.
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Bid price
The highest price at which a buyer is willing to purchase a security, such as a currency pair or a stock. It represents the price level at which traders or investors can sell an asset if they are initiating a sell (short) trade or closing a long trade.
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Bonds
Bonds are investment instruments issued by businesses or governments to finance projects or operations.
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Bull market
An extended upward trend in the market, starting from the previous lows.
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Buy limit order
An order which will be entered at a specific price or lower.
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Buy stop order
An order to enter a security at a specific price or higher.
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Candlestick chart
A chart that displays the historical and real-time prices of a product or market, allowing you to discover patterns and trends.
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Capital
Funds in the account which can be used to trade.
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Capital return
The potential return in investment from the original price.
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Central bank
A financial entity responsible for managing a country’s monetary policy and regulating its financial system.
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Closed position
An order that has been sold or closed.
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Copy trading
Mirroring someone else’s real time trades.
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Current assets
Assets that a company expects to convert into cash, sell, or consume within one year or within its operating cycle, whichever is longer. They are essential for a company’s short-term liquidity and are used to fund day-to-day operations.
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Current liabilities
The obligations or debts that a company is expected to settle within a short period, typically within one year or the normal operating cycle of the business, whichever is longer. These liabilities represent financial obligations that require the use of current assets or the creation of new liabilities to meet them.