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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Risk appetite

The degree of risk a trader or investor is willing to accept.

Risk score

A numerical representation of risk exposure, typically ranging from low to high.

Risk-Reward Ratio

A metric that compares the potential profit of a trade to the potential loss.

RMB

The Chinese yuan, officially known as the renminbi.

Rollover

The extension of a financial position beyond its maturity date, often involving financing costs.

Round number

A psychologically significant price level ending in zero, such as 1.00 or 100.00.

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