Financial Dictionary

Look up the terms traders use every day, from forex and CFDs to indicators and chart patterns. Pick a letter to browse its terms, then open any term to read its definition.

Terms starting with U

  • The underlying asset is the asset on which a derivative such as a CFD is based, such as a share, index or currency pair. The derivative's value follows its price.

  • The unemployment rate is the share of the labour force that is out of work and looking for a job. A low rate can push up wages and inflation, which affects interest rate expectations.

  • The University of Michigan consumer sentiment index is a monthly survey of how US households feel about the economy and their finances. It also includes closely watched inflation expectations.

  • Unrealised profit and loss is the gain or loss on positions that are still open. It becomes realised only when the position is closed.

  • An uptrend is a series of higher highs and higher lows. It continues until price breaks that pattern.

  • The US 10 year Treasury yield is the return on US government debt that matures in ten years. It is the global benchmark for long term borrowing costs and affects stocks, the dollar and gold.

  • The US dollar is the world's main reserve currency and is on one side of most forex trades. Federal Reserve policy and US data drive its value.

  • The US Dollar Index measures the dollar against six major currencies, with the euro carrying the largest weight. A rising index means the dollar is strengthening.

  • USD/CAD is the exchange rate between the US dollar and the Canadian dollar, nicknamed the loonie. It often moves with oil prices, since Canada is a major oil exporter.

  • USD/CHF is the exchange rate between the US dollar and the Swiss franc, nicknamed the swissie. The franc's safe haven status means the pair often falls in times of stress.

  • USD/JPY is the exchange rate between the US dollar and the Japanese yen. It is highly sensitive to the gap between US and Japanese interest rates.