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 V
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A V shaped recovery is a sharp fall followed by an equally sharp rebound. It applies to both prices and economies.
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Value stocks are shares that trade at low prices compared with their earnings, assets or dividends. They often do well when interest rates rise.
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A variable spread changes with market conditions, usually tight in busy hours and wider in quiet or volatile periods.
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The VIX measures the volatility markets expect in the S&P 500 over the next 30 days, based on options prices. It is often called the fear index because it rises when stocks fall sharply.
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Volatility measures how much and how quickly a price moves. Higher volatility means bigger potential gains and losses.
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Volume profile shows how much volume traded at each price level over a period, displayed as a horizontal histogram. Levels with heavy volume often act as support or resistance.
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Volume weighted average price is the average price an asset has traded at during a session, weighted by volume. Traders use it as a benchmark, and price above VWAP is read as bullish for the day.