Financial Dictionary

The S&P 500 tracks 500 of the largest companies listed in the US. It is the most widely used benchmark for US shares.

A safe haven is an asset traders buy during market stress because it tends to hold its value, such as gold, the US dollar, the Japanese yen, the Swiss franc or government bonds.

Scalping means making many very short trades to capture small price moves, sometimes lasting only seconds or minutes. Trading costs have a large effect on results.

Sector rotation is when money moves from one industry to another as the economic cycle changes, such as from technology into energy. It can explain why an index is flat while its sectors move sharply.

A sell limit order is an instruction to sell only at a set price or higher, placed above the current market price. It is used to take profit or to enter a short position at a better price.

A sell off is a sharp, rapid fall in prices as many traders sell at once. It is often triggered by bad news or a shift in sentiment.

A sell stop order is an instruction to sell once price falls to a set level below the current price. It is used to enter a short trade on a breakdown or to limit losses.

A share buyback is when a company buys its own shares on the market, reducing the number in circulation. It can raise earnings per share and support the share price.

The Sharpe ratio measures return per unit of risk by dividing excess return by volatility. A higher ratio means better returns for the risk taken.

A shooting star is a candle with a small body near the bottom and a long upper wick, appearing after a rise. It suggests buyers lost control and the price may turn lower.

Short selling means opening a position that profits if the price falls. With CFDs, traders can go short without borrowing the underlying asset, but losses grow if the price rises.

A short squeeze happens when a heavily shorted asset rises and short sellers rush to buy back, pushing the price even higher. It can cause very rapid gains.

Silver is a precious metal with heavy industrial use, including in solar panels and electronics, quoted as XAG/USD in US dollars per troy ounce. It usually moves with gold but is more volatile.

A simple moving average is the average closing price over a set number of periods, with each period weighted equally. Common settings are the 50 day and 200 day.

Slippage is the difference between the expected price of a trade and the price at which it actually fills. It is most common in fast markets and around major news.

Small cap stocks are shares in companies with a small market capitalisation. They can grow faster but tend to be more volatile and less liquid.

Smart money concepts is a trading approach built around how large institutions are thought to move markets, using ideas such as order blocks, liquidity and market structure. It is popular with retail traders, though its ideas are hard to test objectively.

Solana is a blockchain designed for fast, low cost transactions, and SOL is its native token. It is one of the largest cryptocurrencies by market value.

Soybeans are an agricultural commodity used for animal feed and cooking oil. US and Brazilian harvests and Chinese demand drive their price.

The spot price is the current market price for immediate delivery of an asset. Futures prices for later dates can sit above or below it.

The spread is the difference between the bid and ask price of an asset. It is a cost of trading and tends to widen in thin or volatile markets.

A stablecoin is a cryptocurrency designed to hold a steady value, usually pegged to the US dollar. It is used to move money between crypto assets, though some stablecoins have lost their peg.

Stagflation is when an economy faces slow growth, high unemployment and high inflation at the same time. It is hard for central banks to address, since fighting inflation can deepen the slowdown.

The stochastic oscillator compares a closing price with its range over a set period, usually 14, on a scale of 0 to 100. Readings above 80 suggest overbought conditions and below 20 suggest oversold.

A stock, or share, is a unit of ownership in a company. Share CFDs let traders take a position on its price without owning it.

A stock exchange is a regulated marketplace where shares and other securities are listed and traded, such as the New York Stock Exchange or the London Stock Exchange.

A stock market index tracks the performance of a group of shares, such as the S&P 500 or the FTSE 100. Index CFDs let traders take a position on a whole market in one trade.

A stock split increases the number of shares by dividing each existing share, such as two for one, and lowers the share price in proportion. The total value of a holding does not change.

A stop limit order becomes a limit order once price reaches the stop level. It controls the fill price but may not execute if the market moves past the limit.

A stop loss order closes a position automatically if price moves against it to a set level. It limits losses, though in a fast market or a gap it may fill at a worse price.

The stop out level is the margin level at which a provider starts closing positions automatically. It is set by the provider and is usually below the margin call level.

Sugar is a soft commodity traded as a futures contract. Brazil and India are the largest producers, so weather and policy there move prices.

The Supertrend indicator draws a line above or below price, based on Average True Range, to show the trend direction. When price closes through the line, it flips and signals a possible change in trend.

Supply and demand zones are price areas where strong selling or buying previously started a sharp move. Traders watch them as places where price may react again.

Support is a price level where buying has repeatedly stopped a fall. A clear break below it can turn the level into resistance.

Swing trading aims to capture price moves that last from a few days to a few weeks. Swing traders hold positions overnight, so funding costs and price gaps matter.

The Swiss franc is the currency of Switzerland and is widely treated as a safe haven. It tends to rise during market stress.

The Swiss National Bank is Switzerland's central bank. It sets interest rates and sometimes intervenes in currency markets to limit the strength of the Swiss franc.

A symmetrical triangle forms when a falling upper trendline and a rising lower trendline converge. It signals a pause, and the breakout can go either way.