Glossary

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There are currently 9 names in this directory beginning with the letter P.

Payout

The total amount of earnings from a successful transaction.

PIP

Stands for Percentage In Point. The smallest unit of measurement used in Forex trading to determine exchange rates between multiple currencies.

Platform

The system used to perform transactions provided by a brokerage firm.

Price.Earnings Ratio (P/E)

The ratio used to value a company by comparing it's current share price to it's per share earnings.

Principal Value

The starting capital that a trader invests for transactions in the financial market.

Private Key

Electronic signature used to unlock cryptocurrency wallet and sign transactions.

Public Key

The cryptocurrency code given out when requesting a payment.

Pump and Dump

The process of inflating an assets value by purchasing a large quantity in the hopes that others will follow suit. Afterwords, the initial buyer will sell their assets in the hopes to make a profit from the inflated price.

Put Option

An agreement that allows a seller the option to sell a financial asset at a specified price with in a particular period of time. The seller however is not obligated to sell the asset.

The vocabulary surrounding trading may seem foreign to a beginner. We have collected all the essentials terms and definitions to alleviate that stress and give you the confidence to trade effectively.