Financial Terms

MACD

It is an indicator for assessing and predicting asset price fluctuations used by traders and investors. Displayed as a separate graph. It displays 3 components: the MACD line itself, the signal line a

Margin account

Allows you to use the borrowed funds of the broker to buy assets at interest. In fact, it is access to leverage that allows you to increase your profits. Typical available leverage is 2: 1, that is, a

Market capitalization

This is the total value of all outstanding shares of the company in circulation. It is calculated as the product of the value of one share by their number. Mainly used to show how "big" a company is w

Market price of supply and demand

The ask price is the amount that the buyer is willing to pay, the offer price is the price the seller agrees to. The difference between them on the exchange is called the spread. When submitting an or

Monetary Policy

Measures by the country's central bank to control money supply, inflation, employment and economic growth. Can be suppressive or stimulating.

Mortgage-backed securities (MBS)

They are a series of loans to home buyers sold to outside companies to quickly raise capital. Companies purchase several loans, group them, issue shares and sell them to investors. Thus, when the paye

Mutual investment fund (MIF)

In fact, it is an investment portfolio of assets of different types and companies, managed by an investment manager. Investors buy and sell units, receiving a relatively balanced package of assets.

Option

This is a contract for the right to make the purchase and sale of an asset at a set price on a specific date. Options are derivatives exchange-traded instruments, the underlying asset of which can be

Own (share) capital

This is the absolute value of assets in use, excluding all liabilities on them, including borrowed funds from leverage. The share capital allows you to estimate its total net worth.

Pivot point

Concept from the analysis of profitability and interest rates of fixed income instruments. 1 bp = 0.01% - one hundredth of a percentage point.