It is a strategy where traders profit off the small price changes for the stock.


It is a computational procedure that responds automatically to the large increase of demand.


The equipment used to trade or business.

Time Frame

It’s the amount of time that a trend lasts for in a market


It is a computer-based program that seeks to profit from financial market arbitrage opportunities.

Quantitative Trading

It refers to where it consists of trading strategies that rely on mathematical computations and number-crunching to identify trading opportunities.

Order splitting

It refers to the practice of dividing a large order for the purchase or sale of securities into a series of smaller orders


It’s the chance that an outcome or investment’s actual gains will differ from an expected outcome or return

High-Frequency Trading (HFT)

Uses powerful computer programs to transact a large number of orders in fractions of a second.


A device that controls automatically for the operations of something.


It identifies the item of stock on a stock quotation scheme.


A systematic methodology used for buying and selling in the security market.


A person who buys and sells goods or assets for others.


An agreement between buyer and seller to exchange goods, services, or financial assets.


The state of being free from danger or threat.

Program Trading

The purchase sale o many different stocks.


The value of shares issued by a company.

Black box trading

It is used to describe a computer program designed to transform.


Use the borrowed capital.

Back testing

It is a general method for seeing how well strategy did export.

Paper Trading

Stimulated which allows an investor to practice buying and selling without risking real money.


Direct Market Access can be integrated with sophisticated algorithmic trading strategies.


It is an interpreted and object-oriented, high-level programming language with dynamic semantics.

SMA simple moving average

It is an arithmetic moving average calculated by adding average and then dividing that figure by no of times of periods.

EWMA Exponentially Weighted Moving Average

It reduces exponentially way for each period.

Cross Over

It is the point on the trading chart in which a security’s price and technical indicator line.


An amount of money lost due to business.

Moore’s Law

Refers to Gordons Moore’s perception that the number of transactions on microchips doubles every two years.

Murphy’s Law

It is a supposed law of nature, expressed in various humorous popular sayings, to the effect that anything that can go wrong will go wrong.

Quantitative Finance

It is used in mathematical models and extremely large datasets.

Capital asset pricing model

It describes the relationship between systematic risk and the expected return of assets.

Index Funds

It is a type of mutual fund.

Commodity Futures Trading Commission (CFTC)

IT checks and controls the way futures are traded.

Flash Crash

An extremely rapid decline in the price of one or more commodities or securities.


Have a portion with another person.


The management of large amounts of money.


It is the act of giving something and receiving something.

Trading Account

Can be any investment account containing securities, cash, or other holdings.


Offer something at an auction.


An amount that is produced from agricultural or industrial products.


Obtain a financial profit


Having knowledge especially of a mechanical subject.

Index Fund Rebalancing

It is to keep investment balanced and diversified.

Volume Weighted average Price (VWAP)

The ratio of the cumulative share price to the cumulative volume traded over a given time period.

Percentage of Volume (POV)

It is a simple strategy that executes the order quantity as a percentage of the trade volume of the stock in a given time interval.


It has both long trade and short trade.

Manual Trading

A process that involves decision-making for entering and exiting trades.

Triangular Arbitrage

It has advanced computer equipment and programs to automate the process.

Long term period

The period of more than one year.

Fuzzy Logic

Fuzzy logic is a mathematical logic that solves problems with an open, imprecise data spectrum. Read how to obtain accurate conclusions with fuzzy logic.