Stock Market Glossary

Stock market terminology can be quite confusing so we have compiled this list of the main terms used in the UK financial industry as a reference guide. We will be expanding this section in the near future. You can also play a game of hangman with these terms

Click on the starting letter of term you wish to lookup:

D

Dealer
An individual or organisation that buys and sells products.
Debt to Equity Ratio
Long-term debt divided by shareholders' equity, showing relationship between long-term funds provided by creditors and funds provided by shareholders; high ratio may indicate high risk, low ratio may indicate low risk.
Delivery Date
The day in the month that commodities on a futures contract have to be delivered.
Delivery Month
The month in which commodities on a futures contract have to be delivered. See Active Delivery Month.
Depreciation
A non-cash expense reflecting wear and tear of property used as part of a trade or business or held for the production of income.
Derivative Security
A contract whose value depends on the performance of some other security, index, or other investment. For example, a stock option is a derivative security whose value depends on the value of the underlying stock.
Diversification
The acquisition of a group of assets in which returns on the assets are not directly related over time. Proper investment diversification is intended to reduce the risk inherent in particular securities.
Dividend
Distribution of earnings to shareholders, prorated by the class of security and paid in the form of money, stock, scrip, or, rarely, company products or property.
Double up bet / Double down be
Double up, double down or intraday doubles are those where a trader doubles their money if they correctly predict the direction of the market's move. Like a FLASH BET but over a longer period, if the price is higher at expiry, the stake is doubled. Intraday bets start and finish within a day, whereas normal doubles can run over the course of a week.
Double-touch bet
A fixed odds bet used in more volatile markets, where the investor bets a market will hit one level above and another below during the period. In a way it is two one-touch bets. See One-Touch Bet, Barrier Range, and High No Touch.
Dow Jones
One of the main US indices, perhaps the equaivalent of the UK's FTSE 100
Down Bet
A bet that a market will go down, simply another way of describing going short or a sell bet.

Traders' views

A with most currencies as we stand...”it’s all about Bernanke!”

By Ishaq Siddiqi

Earlier this week we heard from the Reserve Bank (of Australia) and post those (RBA) minutes, which tended to confirm what most had suspected (that the strength of AUD was a pivotal factor in what was an otherwise close decision to cut interest rates).

The all-important policy guidance at the end of the minutes reveals that the RBA opted to use “some” (the “some” comment is a repeat from a couple of weeks ago) of the scope afforded by the low 1Q CPI print and the benign inflation outlook, to lower the cash rate. 

Are the Equity markets too confident to ignore geo-political risk and war?

By Ronnie Chopra

The markets seem to be extending their highs in recent days with no concern about the continuing threat of war in the Middle East.

This morning, news that Israeli and Syrian forces have exchanged fire across the ceasefire line in the occupied Golan Heights was largely ignored by the financial markets. 

Sharp fall in silver today – fallen to levels not seen since September 2010

By Ronnie Chopra

This morning silver fell to levels not seen since September 2010 as commodity prices slumped overnight in Asia and this extended in early London trading. Although here is plenty of physical buying from China, India and the Middle East – there is heavy computer ETF selling.

A strong dollar and outperforming equity markets have shifted investor’s attention to more risky assets with silver suffering.

Has the dollar rallied too far, too quickly?

By Ishaq Siddiqi

Despite general US data thus far this week coming in a little softer, the dollar retains a bid tone, as US risk markets keep on posting new highs despite much speculation on whether USD may have rallied a little too far, too quickly.

Today we await CPI numbers and US data including housing, jobless claims and the Philly Fed.)

Will the yen fall again?

By Zoe Fiddes

The depreciation of the Japanese yen has been an ongoing process for many months now, and recent developments have contributed to its continued decline. However, upcoming data might change the direction upwards.

Japan’s currency is once more weakening compared to the US dollar. 

Trading Videos

ETX Capital Daily Market Bite, 22.05.13: European Markets Waiting For Fed Head Bernanke

City News

London close: Bernanke's dovish tone sparks surge late on

Thu, 1st Jan - * After a relatively subdued start on the FTSE 100, stocks surged in afternoon trade as comments from the Chairman of the Federal Reserve pushed the index to fresh 13-year highs.

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