Category Archives: Glossary

Arbitrage involves buying an asset in one market and simultaneously selling it in another to profit from price differences. These opportunities are usually small and short-lived, as prices across markets tend to align quickly.

The Asian session is the first major trading session of the day, opening after the weekend. While often associated with Tokyo, it also includes markets in China, Australia, New Zealand, and Russia. It generally runs from 11:00 p.m. to 8:00 a.m. GMT, adjusting for daylight savings.

Annualised return expresses an investment’s performance as a yearly rate, taking into account the investment period and changes in value over time.

Anonymous trading allows participants to place trades without revealing their identity. Large traders often use this method to avoid exposing their strategies and influencing prices. Many major exchanges and dark pools support anonymous trading.

Appreciation refers to an increase in the value of an asset over time. This may result from higher demand, reduced supply, or changes in interest rates or inflation. A currency is said to appreciate when it strengthens against others, such as the Japanese yen in the mid-1990s.

Alternative investments include assets outside traditional categories such as stocks, bonds, and cash. Examples include private equity, hedge funds, real estate, commodities, and tangible assets. These investments are usually less regulated and less liquid than conventional ones.

An American option is a type of option contract that can be exercised at any time before its expiration date.

An annual report is a company’s yearly publication detailing its financial performance, business activities, and strategic direction.

Alpha measures the performance of an investment strategy relative to the overall market. A positive alpha indicates returns above the market benchmark, while a negative alpha suggests underperformance and the need for strategy improvement.

Altcoins are cryptocurrencies other than Bitcoin. The term comes from “alternative coin” and generally refers to smaller or lower-market-cap digital currencies that emerged after Bitcoin, often claiming improved features.