A

Autofit

A term used to auto fit many trades into a defined range or ceiling limit.

Automated Trading Software

Programmable Robotic software designed to automate  trades on your behalf. 

Algo Trading

It's also known as "algorithmic trading," "black-box trading," or "algo-trading" when a computer program executes an order in accordance with predetermined rules and guidelines (an algorithm). Theoretically, a computer trader can earn gains at a rate and frequency that a human trader just could not match.

Accumulation

When the price of a stock or other asset rises, especially when the volume of trades increases, it is said to be in the process of being accumulated. This indicates that traders and investors are willing to purchase large quantities of the item. When the value of an asset begins to drop, this is referred to as distribution.

AD (or A/D)

Abbreviated accumulation and/or distribution

Asia's session

Asia's session refers to the period of time during which all Asian markets are open for business. It is the first trading session of a particular trading day and the first session to open after a weekend trading session.

ATR

J. Welles Wilder, Jr. invented the average true range (ATR) as a volatility indicator for commodities technical analysis. It does not show a price trend, only the degree of price volatility, according to the indicator. The smoothed moving average (SMMA) of the true range values is used to get the average true range. Out of the box is a standard 14 period.

Analytics

A process to figure out relationships of data that can be exploited with probabilities in mind. MetaMatrix has many solutions in classifying chart data.

Ask / Offer

The lowest price a stock's seller will take in exchange for a share of that stock is known as the "ask price" or "an offer."

B

Break Even

Break-even (or break even) (also known as point of equilibrium in finance) is the point at which a company or trades are neither making a profit nor losing money. 

British Summer Time

British Summer Time, abbreviated as BST, is observed in the United Kingdom from the end of March until the end of October. It is one hour later than Greenwich Mean Time (GMT). There will be a press conference at 12.30pm BST

Bear Trap

The illusion of a trending down market only to have it whipsaw or come back at your stoploss. A classic trade setup for the unprepared traders.

Bid

A bid is the maximum amount of money a potential buyer is willing to pay for a share of a stock. An open bidding session between buyers finishes when one buyer puts an offer that the other purchasers are unable to or do not choose to accept.

Bull Trap

The illusion of a trending up market only to have it whipsaw or come back at your stoploss. A classic trade setup for the unprepared traders.

Buy (Long)

Generally to buy a trade or go long (buy). It is a basic directional command in MetaMatrix.

Bull Market / Bear Market

The stock market's current trend is indicated by the use of these two phrases. Bull markets are defined as periods in which stock prices rise and the whole market rises. A bear market is one in which stock values are dropping and the market as a whole is moving in the wrong direction.

Breakouts

When a price breaks out of a previous range of a market.

Broker

A broker is a middleman that investor uses to connect to the exchange when trading equities. For a fee, they buy or sell stocks on behalf of an individual investor and do not hold any of the stock themselves.

C

Candle Stick Patterns

A term given to the classification of candle patterns on a chart. There are 36 types of setups to define candle sticks. MetaMatrix supports them all but in a better way. (You will have to buy it to find out).

Capital Market

Those in need of funds can borrow from and invest in the capital markets, which act as a conduit for savings and investments. Banks and investors are the most common suppliers of capital, while corporations, governments, and individuals are the most common customers.

Cell (MetaMatrix)

A matrix that connects to other matrices forming complex relationships. These can also be indicators too.

Closing A Position

When a position is closed, it means that the initial exposure is eliminated by completing a security transaction in the opposite direction. A long position in an asset would require selling the asset, whereas a short position would necessitate purchasing the asset again.

Correlation (MetaMatrix)

Comparing multiple sources of data to see if there is any relationship between them. Most quant methods explore such tactics to increase the odds of a directional bias.

Currency

To exchange goods and services, currency is needed. In a nutshell, it's a form of legal tender, such as paper money or coins, that is issued by a government and widely accepted as a means of payment at face value.

Currency Carry Trade

If you're looking to make money, you'll need a high-paying currency and a low-paying currency. When adopting this approach, a trader aims to take advantage of any differences in interest rates, which can be large.

Currency Peg

National governments use currency pegs to fix the value of their own currency against a foreign currency or a basket of several currencies. Stabilizing the value of currencies by pegging them together is known as currency pinning. In this way, long-term currency exchange rates can be forecasted for business planning purposes. It is difficult to maintain a currency peg if it is too far distant from the market's natural price.

D

Devaluation

When a stock, commodity or currency has to be devalued for imbalances in export power. If it has become to expensive devaluation should improve more units to shift when sales are slow.

Day Trading

Day trading is a short-term investment method that requires all trades to be completed before the market closes.

Delta

In options trading, the term "delta" refers to the amount an option's price varies in response to changes in the underlying asset's price. Often referred to as a hedge ratio, it is also known as a risk-reward ratio.

Dynamic Grid

Another MetaMatrix technology allowing targeted grids to be setup in MANY different ways for a given instrument. Here you can adapt to the changes or change tactics in a moment.

Dynamic Lotsize

A means to change lot size per order based on another factor within MetaMatrix. There are many ways to change lotsizes for any market condition.

Dynamic Orders

A means to change the amount of orders dynamically. Can be assigned in many different context and ways.

E

Embedded Stoploss

An assigned stoploss value based on a dynamic elsewhere in MetaMatrix.

Embedded Take Profit

An assigned take Profit value based on a dynamic elsewhere in MetaMatrix.

Embedded Lotsize

An assigned Lotsize value based on a dynamic elsewhere in MetaMatrix.

Equity

As a business grows, so does the amount of equity it has. This is how many shares someone owns of the company. An investor who buys shares of a company owns the same amount of that company as if they had bought the whole company. There is a place called the stock market where these company shares (equity) can be bought and sold from one person to the next. You can think of a stock as having a lot of money in a company.

Exchange

There are many types of exchanges, but the most common is a physical location or an electronic market where securities are traded. In other words, one of the many stock exchanges around the country or the world where equities can be purchased and sold. Currently, the country's stock markets are NSE and BSE; both of these are located in Mumbai (BSE).

F

Fair Value

Investors use the term "fair value" in a variety of ways. To open a position in a futures market, the value of a stock can be referred to as the cost to open a position.

FCA

The Financial Conduct Authority (FCA) regulates and supervises the UK's financial markets and financial services industries.

Federal Reserve

The United States' central bank for monetary and financial stability is the Federal Reserve Bank, commonly referred to as the "Fed" for short. As part of the Federal Reserve system, there are 12 regional central banks located in key cities across the United States

Fixed Stoploss

A fixed stop loss price for bots or tools.

Fixed Take Profit

A fixed Take Profit price for bots or tools.

Formation

A directory in MetaMatrix database to store matrix patterns.

Forex

A short terminology for financial exchange. The trade of one currency for another is known as foreign exchange (forex or FX).

Futures Contract

A futures contract is an agreement between two parties to buy or sell a specific asset at a predetermined price at a future date. As a general term, they are known as 'futures.'

G

Grid Trading

Metamatrix comes with multiple types of grid trading approaches. From simple to complex rule sets. When it comes to scaling thousands of trades can be setup ready for the markets. WARNING! only go this extreme if you have a large account and a fast pc :0)

Guru Trader

People who are the top of the trading game. Thing is, most are not, fake it until you make it. No evidence of success in the long term. Avoid like the plague.

H

Hedge

A method to place a buy and sell together or staggered. Costs will double but with the right exit strategy as well can work.

High Frequency Trading

Using cutting-edge computer technology, high-frequency trading, often known as HFT, allows investors to execute a large number of deals in a short period of time. It can either be utilized to discover the best pricing for a single large order or to find market profit chances in real time.

I

Indicator

A mathematical visual formula generally embedded into a chart for bias conformation. They can be either lines, bars or a signal marker. 

Indecision

A candle that has a small body but large wicks either side. This is where a market is balanced or halted at a given price range. 

J

Junk Bonds

BBB (S&P) or Ba (Moody's) speculative credit rating for a bond Investors can expect bigger returns from junk or high-yield bonds than from bonds issued by financially stable corporations. Credit rating systems are provided by Standard & Poor's and Moody's Investor Services.

JPY

Japanese currency symbol.

Jobber

A short-term (typically intra-day) trader who focuses on making tiny, regular gains.

K

Key Currency

Stable, widely accepted currencies that are widely used in international trade. International central banks often hold the currencies of smaller countries as reserves and link them to a major currency or a basket of major currencies.

Kiwi

Nickname for the New Zealand Dollar.

L

Latency

The delay between your pc, to the broker to the exchange. Applies to both entry and exits. The longer this takes the worse it can be in fast paced markets. If you are a long term or swing trader. It is not something you should be concerned about. If you are into fast scalping it should be considered vital for such a style of trading.

LotSize

1 Lot = 100000 dollar trade. This is only possible with multiplication of leverage or leverage ratios. Most accounts take what you have and allow to scale up the size of the trades. 1000 dollar account with 1:100 = 100000 dollars. Most brokers will have a margin limit to stop this abuse. Generally 0.01 or 1000 dollar trades is best to start with. Giant oaks do not grow over night. Start small grow small.

London Open Session

When the London stock exchange opens.

M

Mashup

A directory in MetaMatrix database to store matrix patterns for correlating multiple instruments.

Margin call

When a broker demands an increase in maintenance margin from a trader in order to maintain a leveraged deal open, the term "margin call" is used.

Multi Time Frame

A process of multiple chart timeframes used as a sort of orthodoxy for directional bias of a market.

Moving average

As a common indicator in technical analysis, the moving average (commonly abbreviated as "MA") helps to reduce the impact of price spikes by examining the general direction of asset price movements.

Market Context

A method to describe the scenario of the market and the required tactic, bot or approach to apply a trade too.

N

Negative balance protection

If the market moves swiftly or has gaps, traders may be assured that their account balance will not be depleted.

Net income

When a corporation reports its financial results, net income is the total amount of profit (commonly referred to as "profits").

Non-farm payrolls

On a monthly basis, non-farm payrolls are a measure of how many people are employed in manufacturing, construction, and other non-farm businesses. Non-farms, or NFP, can also be referred to as such.

O

Open Positions

It is possible to make money or lose money in an open position. When a trade is concluded, all profits and losses are realized, and the transaction is no longer open for new positions. If you have open positions, you can profit from both rising and declining markets.

Overbought

When a stock or currency has reached beyond a normal range. This is when sellers are not interested and buyers go wild.

Order Sheet

A complete account of all trades. These can be found in Metatrader order history and in MetaMatrix for live trading.

Order Flow

A horizontal data bar that shows volumes of a given candles contents. Certain prices will be more popular. Which is handy to know for future reference.

P

PASL

Pattern based targets for stoplosses. There are many ways to target or valuate a setup. PASL has many options from 1 trade to 9 trades per prime trigger. Setup time is near instant. Automated or manual.

PATP

Pattern based targets for take profit. There are many ways to target or valuate a setup. PATP has many options from 1 trade to 9 trades a given moment. Setup time is near instant. Automated or manual.

PP - Price position

There are 5 price positions for every candle. Top wick, Top body, Bottom Body, Bottom wick or live price.

Profit and Loss Statement

In the financial world, a profit and loss (P&L) statement is a financial statement that summarizes the company's revenues, expenditures, and expenses for a given period of time.

Q

QuickToolᵀᴹ

MetaMatrixᵀᴹ comes with fully custom pattern/matrix matching technology that can be used both for trading every style we have and synchronize drawing with our matrix engine. Many tools can be shared or used while trading with bots. Quicktoolsᵀᴹ can draw many different things on the chart tailored to your perceived requirements while keeping decisions objective.

Quant

A person that uses complex mathematical ideas to classify, describe and find relationships in random systems like the markets.

Quantify / Quantitative

To reduce complex systems into a easy to understand formula or visual explanation. MetaMatrix offers this approach to help solve and classify many of its cell matrices.

R

ROI - Return On Investment

An investment's efficiency or profitability may be assessed using ROI, which is a performance metric. It can also be used to compare the efficiency of other investments.

Rules

A directory in MetaMatrix database to store matrix rule patterns. Any interception based grids can have patterns as rules assigned to the bot or tool. From Risk, to depth, to other factors that remove mistakes, bad timing or late trading. It is completely flexible.

Risk

The amount of money to risk per trade.

Risk / Reward ratio

The amount of money to risk vs take profit. Ratio's would look like 1:1, 1:2, 1:3, 1:4. If you risk 10 dollars and a reward of 40 dollars this will be considered 1:4 ratio.

S

Scaling in and out

To scale more or less trades at a given point depending on the scenario of the market. MetaMatrix has many methods to achieve this.

Sell (Short)

Generally to sell a trade or go short. It is a basic directional command in MetaMatrix.

Support and Resistance

A horizontal line for the floor or ceiling of a market. Two peaks of a zigzag can be considered either the floor or ceiling relationship. Double bottoms or Double tops are usually created from this.

Sub Formation

A directory in MetaMatrix database to store smaller or sub patterns.

Spread

A buyer's willingness to pay for an object is always more than the price a seller asks for it. Bids and offers differ in the stock market, with the bid price being lower than the offer price. The ask-bid spread or spread is the name given to this discrepancy, and it is mostly driven by supply and demand.

Stoploss

A price marker to exit a trade if take profit at a given price fails.

Swap fee

The interest rate difference between the two currencies of the Forex pair you are trading is known as a swap charge (also known as a rollover cost in this context). Clients will be able to pay and receive interest on both currencies (for borrowing one and lending the other)

Slippage

Slippage is when the price at which an order is executed doesn't correspond to the price at which the order was placed.

T

Target Pattern

A pattern based match designed for both grids, stop losses and take profits. MetaMatrix offers many ways to setup a trade with this benefit

Take Profit

A price marker to exit at a positive price point at a given price.

Trailing Stoploss

A stoploss that moves at a specific pattern/price point. Very handy to automatically move a stoploss at a specific pattern. This should if setup right reduce losses overall. MetaMatrix offers alot of variations depending on what works best for the trigger pattern of the Bot/Quicktool.

Trading Account

Trades are now executed electronically on the stock market because of the rise of online trading accounts with a registered broker. This trading account serves as the conduit for all stock purchase and sale orders.

Tricks

A directory in MetaMatrix database to store trick patterns that are deliberately designed to mess up smoothing algo bots and people! By having them assigned with quicktools it it easy to spot without effort and can be traded.

Traps

A directory in MetaMatrix database to store trap patterns that are deliberately designed to mess up smoothing algo bots and people! By having them assigned with quicktools it it easy to spot without effort and can be traded.

Technical Analysis

In the financial markets, technical analysis is used to examine and anticipate price changes by analyzing past price charts and market statistics. A trader's ability to discern past market patterns can be used to predict where prices will go in the future.

U

Unbiased Direction

A psychological or reductive method to remove a conditioned or subjective perspective on the direction of the market place.

Undersold

When a stock or currency is greatly undervalued. This is when buyers are not interested and sell off's are extremely brutal.

Unregulated Broker

It's possible to lose all of your money if a broker is unregulated, as there is no regulating body or group of people to supervise them. There are a lot of internet brokers out there that are labeled as a scam or fraud because of this.

Unborrowable Stock

This is the type of stock that no one is ready to lend to short sellers. When a company's shares are no longer accessible to be borrowed, standard short selling methods are rendered ineffective.

V

Volatility

When it comes to stock prices, volatility refers to the rate at which the share price fluctuates. The price of a highly volatile stock fluctuates on a daily basis. While some traders profit from the extreme volatility of the stock market, others prefer to invest in less volatile equities for the long term.

W

Working Order

A working order is a stop or limit order to open can be described as "functioning." When an asset's price reaches a predetermined level, you can instruct your broker to make a trade.

Whipsaw

When a market literally whips into the opposite direction.

X

X

Trading Glossary not available for X

Y

Yield

Return on investment on stock is represented as a percentage and is known as yield.

Z

ZigZag

A Pivot that is drawn reducing noise or pullbacks in the market place. Can be used for reversals or directional trading.