Glossary

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P
PAID
Refers to the offer side of the market dealing.
PAIR
The forex quoting convention of matching one currency against the other.
PANELED
A very heavy round of selling.
PARABOLIC
A market that moves a great distance in a very short period, frequently moving in an accelerating fashion that resembles one half of a parabola. Parabolic moves can be either up or down.
PARTIAL FILL
When only part of an order has been executed.
PATIENT
Waiting for certain levels or news events to hit the market before entering a position.
PERSONAL INCOME
Measures an individual’s total annual gross earnings from wages, business enterprises, and various investments. Personal income is the key to personal spending, which accounts for 2/3 of GDP in the major economies.
PIPS
The smallest unit of price for any foreign currency, pips refer to digits added to or subtracted from the fourth decimal place, i.e., 0.0001.
POLITICAL RISK
Exposure to changes in governmental policy which may have an adverse effect on an investor's position.
PORTFOLIO
A collection of investments owned by an entity.
POSITION
The net total holdings of a given product.
PREMIUM
The amount by which the forward or futures price exceeds the spot price.
PRICE TRANSPARENCY
Describes quotes to which every market participant has equal access.
PROFIT
The difference between the cost price and the sale price when the sale price is higher than the cost price.
PULLBACK
The tendency of a trending market to retrace a portion of the gains before continuing in the same direction.
PURCHASING MANAGERS INDEX (PMI)
An economic indicator which indicates the performance of manufacturing companies within a country.
PURCHASING MANAGERS INDEX SERVICES (FRANCE, GERMANY, EUROZONE, UK)
Measures the outlook of purchasing managers in the service sector. Such managers are surveyed on several subjects including employment, production, new orders, supplier deliveries, and inventories. Readings above 50 generally indicate expansion, while readings below 50 suggest economic contraction.
PUT OPTION
A product which gives the owner the right, but not the obligation, to sell it at a specified price.