Bearish

A term used to describe when a trader anticipates a market will move lower in terms of price.[back to top]

Bullish

A term used to describe when a trader anticipates a market will move higher in terms of price.[back to top]

Control

In Market Profile the area where a market has spent a user defined amount of time is know as a distibution. The control point is where the market has spent the most amount of time within the distribution.[back to top]

CPI

Consumer Price Inflation.[back to top]

Day Trader

See Day Trading.[back to top]

Day Trading

Many traders do not want overnight risk and therefore close their positions before the market shuts. This is considered to be Day Trading.[back to top]

Distribution high

In Market Profile the area where a market has spent a user defined amount of time is know as a distibution. The distibution high by default is the high of this area.[back to top]

Distribution Low

In Market Profile the area where a market has spent a user defined amount of time is know as a distibution. The distibution high by default is the high of this area.[back to top]

Entry Signal Evaluator

This is a function within CQG that can be used for back-testing indicators and trade ideas.[back to top]

Fibonacci Extensions

the extensions utilise Fibonacci nos. to project upward/downward price action. Particularly useful where markets move into areas that they have not traded in before.[back to top]

Fibonacci Retracements

Fibonacci Retrcacements are commonly used to help determine where a market may retrace/reecover to. The most common nos. are 0.382/0.50/0.618.[back to top]

In the Money

An option term that reflects when a position is below the strike price i.e. a B.P. 120p call would be deemed to be out of the money from 119p assuming the increments every penny.[back to top]

Initiative activity

Long-term players dictate trends and when the volume they wish to trade cannot be satisfied at one price their perception of fair value shifts and price trends.[back to top]

Local

A private trader that risks his own money in the futures exchanges.[back to top]

Market Profile

A method of displaying price action using letters to represent trading activity. This method is used within the preparation of the I-TRADERS Daily Research.[back to top]

Optimisation

A method where trading tools are tested for their optimal variables. Care should be taken with this process.[back to top]

Out of the money

An option term that reflects when a position is above the strike price i.e. a B.P. 120p call would be deemed to be in the money from 121p assuming the increments every penny.[back to top]

Overbought

The point at which a market has travelled too far in an upward direction. I-TRADERS use non-standard methodology in the Daily Research.[back to top]

Oversold

The point at which a market has travelled too far in an upward direction. I-TRADERS use non-standard methodology in the Daily Research.[back to top]

Pops divergence

An I-TRADER indicator that highlights positive divergence.[back to top]

Responsive Activity

Long-term traders dictate the end of the trend by withdrawing initiative activity, taking profits or establishing counter-trend positions.[back to top]

Risk/Reward

Some traders consider the value of a trade based on their upside/downside calculation. Many will only enter the trade if they stand to gain 3x for the potential of losing 1x.[back to top]

Scalping

A method of trading whereby the trader attempts to make small returns on a frequent basis.[back to top]

Scratch Trade

A trade that has the same entry and exit is said to be "scratched" i.e. no profit or loss was created.[back to top]

Single letter prints

A price range on a market profile chart where the market has spent little time (see vacuum).[back to top]

Stops

The point at which a trader closes his position when the market begins to move against them.[back to top]

Super Tankers

A term used by I-TRADERS to reflect the time it takes the large players to switch their positions from bullish to bearish and vice versa.[back to top]

Trading Arcades

Following the closure of the Futures Exchanges to open outcry, a no. of companies set up trading rooms for private traders and small companies. The intention is to create a trading environment at a low cost.[back to top]

Trailing Stop

A method whereby the Stop (see Stops) advances as the position advances in the money. The concept is that the optimal stop point will be taken.[back to top]

Ufo divergence

An I-TRADER indicator that highlights negative divergence.[back to top]

Vacuum

A vacuum is a price range where the market has moved swiftly. This price range should be referenced as it can often provide useful information in the future.[back to top]

Value area

The value area on a Market Profile chart is the line to the left of the letters and represents the range of 70% of the specified time's ticks or volume information.[back to top]

VAR (value at risk)

A calculation that shows the risk on a 1 basis point move in a market position.[back to top]

Webinar

A web-based seminar, a presentation, lecture, workshop or seminar that is transmitted over the web.[back to top]