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The Rise Of STARTRADER

One Of The
World’s Fastest Growing Brokerage

The Rise Of STARTRADER

One Of The
World’s Fastest Growing Brokerage

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.

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Hedge ratio

A hedge ratio measures risk exposure in a position, with 0% indicating an unhedged position and a ratio between 1-100% representing a hedged one, calculated as:

Hedge Ratio = Value of the Hedge Position / Value of the Total Exposure

Heikin-Ashi

A candlestick chart that minimises price noise, using colorless candlesticks with wicks for selling pressure in uptrends and colored candlesticks with tails for buying pressure in downtrends.

High-frequency trading (HFT)

A type of trading that uses powerful computers and algorithms to execute trades at very high speeds, often in milliseconds or less.

Historical pricing

The record of buying and selling prices of a product, aiding analysts and investors in assessing its potential performance.

Historical volatility

A measure of the variability of a security’s price over a specific period of time, based on past price movements.

Holder

The owner of a security, such as a stock or bond.

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