Finance and trading jargon

About this list

Markets, banking, and deal-making, as traders and bankers actually say it. Wiktionary’s definitions describe usage, not investment practice.

200 terms, A to Z

account book

A book in which accounts are kept; ledger.

account current

A regularly updated record of transactions between two parties showing what is owed or due to each party or a statement summarizing the position.

account number

A number used to identify a bank account.

after-tax

Remaining after tax has been deducted.

all-or-none

Designating a type of stock market or derivative order that is to be executed only if the full quantity of the order can be bought or sold.

asking price

The list price or sticker price of an item; the price without any discounts or incentives.

at a loss

Below the cost or price of purchase.

at the money

Of an option, having an underlying value approximately equal to its strike price: roughly, such that exercising it yields neither a profit nor a loss.

average down

To buy more of a product, especially more shares, at a lower price than a previous purchase, so that the average price paid for one's holding is lowered.

average up

To buy more of a product, especially more shares, at a higher price than a previous purchase, so that the average price paid for one's holding is raised.

bad bank

A bank created to specialize in the ownership of defaulted loans and their collection.

bad money

Any money of coinage or currency that is depreciated, mutilated, or debased.

bank card

A card issued by a bank, which may entitle the holder to a variety of services similar to that of a credit card or debit card, or allow withdrawal of cash from ATMs.

bank money

A medium of exchange which consists solely of checks and drafts.

bank paper

Banknotes in circulation.

bar money

A typee of money in the form of metal bars, specifically the rectangular stamped coins used in Ceylon and in the Dutch East Indies.

base price

The starting or foundational cost of a product or service before any additional features, upgrades, taxes, or discounts are applied.

base rate

A benchmark interest rate, from which other interest rates are calculated; a policy rate.

big figure

In a money market, the part of a monetary value before the decimal point.

black information

data showing that somebody is uncreditworthy

block time

The average time it takes for the network to generate one extra block in the blockchain.

blue list

A daily publication that details bonds offered for sale by dealers and banks.

board lot

Synonym of round lot.

book account

A current account.

book credit

In a ledger, an amount credited to a named account.

books

Accounting records.

break-even time

The point in time at which total costs are equal to total revenue.

building society

A type of financial institution which traditionally was based on lending money (as mortgages) to society members to purchase houses, from the pooled savings of other members or money borrowed wholesale.

buy and hold

A passive investment strategy where an investor purchases an asset and retains it for many years, rather than trading it frequently.

buy into

To buy stocks or shares of (a business).

buy order

A request that a broker buy a quantity of a particular type of stock, bond, or other financial security.

buy side

The sector of the finance industry that assists investors and investing institutions in purchasing products from the sell side.

buy stop order

An instruction to purchase a security when its price reaches a predefined level.

call money

Money that is loaned by a financial institution and is recallable on demand.

call money rate

The rate at which short term funds are borrowed and lent in the money market.

call value

The amount that must be paid by the issuer to a bondholder to call the bond before its maturity.

capital control

A measure implemented by a government or monetary authority to regulate and control the movement of capital across its borders.

capital market

The market for long-term securities, including the stock market and the bond market.

car note

A periodic payment for a loan on an automobile.

cent

A subunit of currency equal to one-hundredth of the main unit of currency in many countries. Symbol: ¢.

central bank

The principal monetary authority of a polity or monetary union, which normally implements monetary objectives by controlling interest rates, issuing currency, managing the national debt, overseeing banking and…

charge off

A write-off.

Chinese money

Risky alternatives to cash, such as convertible securities, low interest debentures, or warrants, when they are used to purchase shares in a company.

clean down

To pay off revolving debt.

clean price

The price of a bond excluding any interest accrued since the bond's issuance and the most recent coupon payment.

close the books

To finalize the financial records for a specific accounting period; to cease trading.

club together

To contribute money jointly with others.

cost base

The fixed costs, and sometimes all other costs as well, involved in running a company or producing a product.

cost center

A division or project of an organization to which costs can be specifically allocated.

cost of doing business

The total ordinary expenses, such as materials, labor, and taxes, necessarily incurred in operating a commercial enterprise.

cost of money

The interest rate paid for borrowed funds or the interest itself.

cost price

The amount paid by a trader for goods purchased.

country risk

The risk of investing or lending in a country, arising from possible changes in the business environment that may adversely affect operating profits or the value of assets in the country.

credit event

A significant default on a financial instrument or some other financial occurrence, such as bankruptcy, restructuring, repudiation, or moratorium, or failure to pay some other obligation, such as taxes.

credit history

A record of a borrower's responsible repayment of debts.

credit line

Synonym of line of credit.

credit money

Monetary value which is created as a result of a future obligation or claim by the issuer of the credit.

credit report

A document of the history and current status of a borrower's credit standing, which may include identifying information, credit information, public records information, recent inquiries and credit score.

current account

An account at a bank which is used for daily transactions.

day order

An instruction to carry out a trade only if the asset to be traded reaches a certain price during the current trading day.

day trade

A transaction in which units of stock or other investment instruments are purchased and then sold within a single market day.

dead gold

Inactive, unmonetized gold reserves that do not generate any interest, dividends, or yield.

death play

The buying of company stock based on the belief that an executive in the company will soon die, with the expectation that the stock will rise in price because of it.

down round

A round of financing for a company that raises capital at a lower share price (or sometimes a lower company valuation) than the previous round.

due day

Synonym of due date (“the date of payment in financial arrangements”)

e-gold

Gold that is traded over the Internet.

economic life

The expected period of time during which an asset remains useful or profitable to its owner.

final account

The year-end numbers needed to file a balance sheet for a corporation.

financial management

The efficient and effective management of money in such a manner as to accomplish the objectives of an organization.

financial year

Synonym of fiscal year.

first notice day

The first day on which an investor who holds a futures contract is notified that the commodity specified in the contract is about to be delivered.

foreign trade

Trade that is conducted between a nation and other nations.

forward market

The informal over-the-counter financial market by which contracts for future delivery are entered into.

free ride

To buy and sell shares or other securities without actually having the capital to cover the trade.

front run

To engage or partake in the practice of front running.

front running

The illegal practice of a stockbroker who, on receiving a large client order, places an order for his or her own account ahead of the client's, knowing that when the client's order is placed it will move the market and…

front-end

Of a financial transaction, paid or charged first.

give credit

To extend or offer credit within a financial institution.

go public

To launch an initial public offering.

go short

To sell a financial product (such as a share) now, even though one does not presently own it, in the hope of buying it more cheaply for delivery at a later date, so as to profit from a fall in price below the price at…

gold bank

A financial institution or digital platform that allows users to store, save, or trade physical gold.

gold card

A premium credit card offered by some issuers that provides a range of benefits and financial services for favored customers.

gold point

The values above and below the mint par of two monetary units on a shared metallic standard at which it became equally inexpensive to import or export gold or silver bullion instead of resolving trades through credit…

government issue

A group of securities with the same maturity, interest rate, and terms and conditions issued by a government.

gun money

An issue of coins, minted in base metal, made by the forces of James II during the Williamite War in Ireland.

high-growth

That is increasing in size or value quickly.

I kill you later

An accumulator.

in the black

Having positive net income; having greater income than expenses; making a profit.

in the red

Having net losses; in debt.

inside information

Information obtained by or from a person in a position of trust (a director, an employee, a consultant) that affects the price of publicly traded securities.

interest rate

The percentage of an amount of money charged for its use per some period of time (often a year).

interest-free

Not charging interest; not subject to interest payments.

k-line

A style of financial chart used to describe price movements of a security, derivative, or currency

legal interest

The amount of interest that is allowed or required to be charged by law; an interest rate determined by law.

light paper

A short white paper; a brief factual report detailing a new product or technology.

line of credit

A credit facility under which a bank or other lender agrees to provide a client with loans of money up to an approved limit during a predefined period. The client may borrow the entire credit amount all at once or in…

live up

To spend money on one's lifestyle to the exact limit of a specific budget or revenue, leaving nothing for savings.

long position

A financial instrument bought with the expectation that it will increase in value.

mark to market

To value an asset at its current actual or estimated market price.

mark to model

A valuation or valuation method that assigns a value to an asset based on a model of its value.

mark-to-market

Assigning a value to an asset equal to the current market price of the asset or one calculated based on related standardised assets for which there is a market.

market letter

A publication for investors, etc. providing an overview of market conditions.

market opening

The beginning of formal trading on an exchange, usually signalled by the opening bell.

market order

An instruction to a stock broker to sell stocks immediately, at whatever price reflects the current value of the stock.

market risk

The risk that the value of an investment will decrease due to moves in market factors.

market value

The price which a seller or insurer might reasonably expect to fetch for goods, services or securities on the open market.

member bank

A private bank that holds stock in one of the regional Federal Reserve banks.

middle office

A team of employees working in a financial services institution.

money market

A market for trading short-term debt instruments, such as treasury bills, commercial paper, bankers' acceptances, and certificates of deposit.

money of account

A denomination of value used in keeping accounts, for which there may, or may not, be an equivalent coin.

money order

A directive to pay a prespecified amount of money from prepaid funds, making it a more trusted method of payment than a check.

month to date

The period from the beginning of a calendar month to the end of a reporting period.

name day

Synonym of ticket day.

national income

The sum of all income in a nation over a specific time period including wages or salaries, pension payments, interest, rents, and profits of businesses after tax.

near money

Highly liquid assets, other than cash, that can easily be converted into cash.

off-book

Off the books, not officially recorded.

offer wanted

A notice by a potential buyer of a security indicating their search for a supply from a potential seller of the security, often requiring a capital commitment.

one-touch

Being or relating to a kind of exotic option that pays out if an asset reaches or passes a certain price at any point during the relevant period.

open interest

The total number of contracts outstanding between market participants in a market for futures, options, or other derivatives.

open position

An active trade with unrealized profits and losses that has not yet been offset (“closed”) by a corresponding equivalent deal.

out of the money

Of an option, yielding a loss if exercised.

out trade

A trade that cannot be placed because it was received by an exchange containing information that is inconsistent or contradictory.

pain point

A difficult or challenging aspect of something.

paper gold

special drawing rights

paper hands

The fragility or insecurity of an investor—also called weak-handed—who is eager to sell a financial asset upon an early or dubious indication of downturn.

paper trade

A single transaction within paper trading, i.e. an order in a hypothetical portfolio for learning the stock market.

paper-hand

To treat with paper hands, i.e. sell too early.

pay by bank

A technology allowing customers to make online payments directly from a bank account, without using a credit card or debit card.

pay cut

A reduction in salary or wages.

personal capital

Financial resources or other wealth belonging to a particular person, especially when used for investment purposes.

political risk

Any financial or other risk that stems from the possibility of a nation changing its policies.

post note

A note issued by a bank, payable at some future specified time, as distinguished from a note payable on demand.

present value

The value of future cash flows determined as of the date of valuation.

price of money

The rate of discount in lending or borrowing capital.

public credit

The loan of money to a government body in return for a bond or similar promissory note.

put through

A transaction by a broker outside the stock exchange, bringing a buyer and seller together.

rate of return

The amount of profit earned in a reporting period, expressed as a percentage of the cost.

ready money

Money held ready for payment, or actually paid, at the time of a transaction.

rights issue

A dividend of subscription rights to buy additional securities in a company, made to the existing security holders.

rights offer

Synonym of rights issue.

risk-off

A mode of investment behavior in which investors shift high-risk investments to low-risk investments.

risk-on

A mode of investment behavior in which investors shift low-risk investments to more profitable high-risk investments.

round lot

A block of shares of stock that is a multiple of some number, usually 100.

round turn

A complete trade, involving both the purchase and the sale of a commodity.

scale in

To incrementally enter a position on an oversold market in view of indications of a rebound trend.

scale out

To incrementally lower one’s position on an overbought market in view of indications of a falling trend.

security market line

A line representing the relationship between expected return and systematic risk, thus a graphical representation of the CAPM. It is valid both for portfolios and individual assets.

sell away

To sell a financial product without the authorization of one's employing broker-dealer to sell that product.

sell in May and go away

Stock market securities can be expected to increase in value to a greater degree in the months from November through April than in the months from May through October, and profit-minded investors should manage their…

sell order

A request that a broker sell a quantity of a particular type of stock, bond, or other financial security.

sell short

To engage in the process of short selling (selling a stock one does not own on the premise of the stock's price going down).

sell side

The sector of the finance industry that sells products such as stocks, bonds, and mutual funds to investors.

sell the news

To sell on confirmation of positive developments.

share account

A savings account offered by mutual financial organizations, such as building societies or credit unions.

share book

A physical or digital ledger that documents the names of the shareholders in a company.

share capital

The part of a company's capital that is financed by shareholders through the issue of shares.

short

Having a negative position in.

short position

A financial instrument bought with the expectation that it will decrease in value.

short-paid

Paid less than the amount owed; underpaid, especially due to clerical error, billing adjustment, or miscalculation.

short-pay

To pay (someone) less than the amount that is owed; to underpay through error, omission, or miscalculation.

simple interest

Internet that is paid only on the principal.

six-figure

Counted in the hundreds of thousands; 100,000 to 999,999.

sound money

Money which is stable and not subject to sudden appreciation or depreciation.

special situation

An atypical event with the potential to alter the future course of a business, with material impact on the company's value.

spot

Available on the spot; for immediate payment or delivery.

standard money

A type of monetary unit which is designated by a government to serve as the basis of its currency system.

stock company

an incorporated company the capital of which is represented by marketable shares having a certain equal par value

stop loss order

A conditional order placed with a stockbroker (or similar) to close one's position if the market drops (or rises in some cases) to a specified price level.

stop-loss

A stop loss order.

T-account

A ledger with a debit column and a credit column.

T-bill

A Treasury bill.

tax lot

A grouping of security holdings in an account used for enabling the calculation and treatment of the securities for tax compliance and reporting.

tax point

The date on which a transaction takes place for the purpose of calculating value added tax.

tax return

A declaration of income etc. for tax purposes: a report of income, deductions, contributions, and related financial information filed by a taxpayer with a national or local tax authority, used by the authority to…

tax year

Synonym of fiscal year.

third market

The trading of exchange-listed securities over the counter rather than through the exchange.

third-order

Of or pertaining to third-order Greeks, used by portfolio managers and derivative traders to measure risk and the sensitivity of an option in regard to changes in implied volatility, time premium decay, and the price…

time account

An account into which a time deposit may be completed.

time money

Money which is loaned or prepared to be loaned for a specified period of time.

time note

A promissory note that specifies a date (or dates) when repayment must be made.

time order

An order that changes its form after a certain time period, by becoming either a market or a limited price order, or is cancelled altogether.

time plan

A type of system permitting the payment of goods or services by installments.

time trade

The act of selling or buying a financial instrument based on the time at which the trade occurs, such as buying short.

time value of money

A widely accepted conjecture that there is greater benefit to receiving a sum of money now rather than an identical sum later.

time-based

Of payment or compensation that is related to the amount of time spent working.

top line

Total sales or revenue.

total loss

An insured item of which the entire value is written off.

trade date

The date on which a security trade occurs.

trade term

A type of detail relating to prices and quotas in an agreement between nations trading with each other.

two-name paper

Negotiable paper on which at least two persons are severally liable as separate makers, or, usually, one as maker and one as endorser.

under the rule

Of a deal: concluded by the secretary of the stock exchange when the actual dealer has failed to do so.

up round

A round of financing for a company that raises capital at a higher share price (or sometimes a higher company valuation) than the previous round.

Value at Risk

A widely used measure of the risk of loss on a specific portfolio of financial assets. For a given portfolio, probability and time horizon, VaR is a threshold value such that the probability that the mark-to-market…

value date

Date and the action itself on which payments are credited or debited to the customer's imagined but legally real account, as opposed to the date a balance is made visible (posting date, entry date) which is when…

white information

data showing that somebody is creditworthy

working capital

The amount of capital a business or other entity has available for running its daily operations, calculated as current assets minus current liabilities.

write off

To reduce the book value of (an asset) to zero.

write-off

The cancellation of an item; the amount cancelled or lost.

year to date

The period from the beginning of a fiscal year to the end of a reporting period.

year-to-date

Relating to the period from the beginning of a fiscal year to the end of a reporting period.