Trading Glossary Explained

Trading is a complex process, which includes many actions that a person unfamiliar with the financial world will find puzzling. Once you launch your trading career, you will be swamped with trading terms whose meaning you will not know. You will not immediately grasp how the market value of a business differs from its book value. Nor will you understand what CPI stands for and how it is different from IPO, unless we supply you with a glossary of all confusing terms that you meet in a trading business.

To help you avoid confusion, we have compiled a comprehensive glossary of financial terms used at the markets. All trading glossary is presented in our glossary in the alphabetical order and is explained with linguistic precision. Any financial term that sounds baffling to you now will become crystal clear once you read its definition in our glossary below.

All | # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

There are currently 5 names in this directory beginning with the letter Z.

Zero Balance Account (ZBA)

It is a checking account where a balance of zero is maintained. When funds are required in this account, the exact amount of money needed is automatically transferred from a central or master account.

Zero-Based Budgeting (ZBB)

It is a method of budgeting according to which all expenses must be justified for each new period. The process of zero-based budgeting starts from a “zero base.” Every function within a company is then analyzed for its needs and costs.

Zero-Coupon Bond

It is a debt security that does not pay interest. Instead, it trades at a deep discount and renders a profit at maturity, when the bond is redeemed for its full-face value.

Zero-Rated Goods

These are products which are exempt from value-added tax (VAT) in countries that use this value taxation.

Zoning Ordinance

It is a rule defining how property in specific geographic zones can be used. It details whether specified geographic zones are acceptable for residential and commercial purposes