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

  • A V shaped recovery is a sharp fall followed by an equally sharp rebound. It applies to both prices and economies.

  • Value stocks are shares that trade at low prices compared with their earnings, assets or dividends. They often do well when interest rates rise.

  • A variable spread changes with market conditions, usually tight in busy hours and wider in quiet or volatile periods.

  • 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.

  • Volatility measures how much and how quickly a price moves. Higher volatility means bigger potential gains and losses.

  • 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.

  • 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.