Glossary
Our comprehensive glossary explains many of the terms commonly used in the international markets.
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Half turn |
The commission is charged per trade (for both buy and sell). The alternative is a round-turn commission, which includes both opening and closing positions. |
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Head and Shoulders Bottom |
A well-known reversal pattern marked by three (or more) prominent troughs with a middle trough (the head) that is lower than the other troughs (the shoulders). When the trendline (neckline) connecting the peaks at the top of the pattern is broken, the pattern is complete. |
Head and Shoulders Top |
A well-known reversal pattern marked by three (or more) prominent peaks with a middle peak (the head) that is higher than the other peaks (the shoulders). When the trendline (neckline) connecting the troughs at the bottom of the pattern is broken, the pattern is complete. |
Headline Earnings Per Share (HEPS) |
Taxed profit less preference and minority shareholders' interest, divided by the number of ordinary shares issued which is EPS. HEPS excludes from this EPS figure profits or losses associated with the sale or termination of discontinued operations, fixed assets or related businesses, or from any permanent devaluation or write off of their values. |
Hedge ratio |
The change in the Option price or the change in the underlying spot price. |
Hedging |
Dealing in such a manner as to reduce risk by taking a position that offsets an existing or anticipated exposure to a change in market prices. You are therefore attempting to lock in the profit/loss on the position at the current level. |
High |
This is the highest cash sale for a given period. This value is adjusted after capital structure changes. |
Historical data |
A series of past daily, weekly, or monthly market prices. |
Holding company |
Any company, which owns more than 50% of the voting capital of another company, or can be, said to have effective control over the appointment of its directors. |
Horizontal channel |
When tops of the rallies and bottoms of the reactions form along lines which are horizontal and parallel to one another. |