Trading Glossary

Plain-English definitions for every term you will meet on Volity. Short, clear, no fluff.

A

  • What is Arbitrage

    Quick answer Arbitrage is the simultaneous buying and selling of the same asset on different markets to profit from price discrepancies.

B

  • What are Blue-Chip Stocks

    Quick answer Blue-chip stocks are shares of large, established companies with reliable earnings, strong balance sheets, and long dividend track records.

L

  • What is Leverage in Forex

    Quick answer Leverage in forex lets traders control a much larger position with a smaller deposit (margin).

M

  • What is Margin in Trading

    Quick answer Margin in trading is the deposit a trader puts down to open a leveraged position, expressed as a percentage of…

S

  • What is a Stop Out

    Quick answer A Stop Out is the broker's automatic closing of trades when a trader's account equity falls below a defined threshold…

  • What is a Stop-Sell Limit

    Quick answer A stop-sell limit order combines a stop-loss trigger with a limit-sell price.

T

  • What is Total Return

    Quick answer Total return is the combined gain on an investment from price appreciation plus income (dividends, interest, distributions) over a period.

V

  • What is Volume in Stocks

    Quick answer Volume in stocks is the number of shares traded during a specific period, typically a trading session.

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