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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Narrow market

A market environment with low trading volume and limited price movement.

Narrow spread

A small difference between the bid and ask prices of an asset.

Negative carry pair

A currency pair where the interest rate of the base currency is lower than that of the quote currency.

Net position

The overall value of a trader’s holdings after accounting for the initial cost of establishing the position.

Netting

The process of offsetting opposing trades or positions to reduce total exposure.

Neutral

A market condition where price action shows no clear bullish or bearish bias.

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