By Jasper Hamill
The crypto world has some strange and wonderful terms that would baffle any outsider. But so does the legacy financial sector. Now the retail broker Eurotrader has released details of trading jargon that people find most confusing in order to shine a light on the sometimes mysterious old ways of finance.
Nick Whitehead, Head of Product at Eurotrader, said:
“It’s understandable many of us feel inundated by the mass of trading jargon we read and hear, and this can often put people off entering such markets.”
“Our research suggests there is a need for increased financially focused resources and education to help traders across the country gain more confidence and better knowledge before entering the market.”
“Trading is a complex industry, so it is vital that those considering becoming involved, enhance their knowledge prior to making any financial commitments.”
The broker analyzed search terms to discover the questions people were asking Google in 2021, before listing them ranked by growth in the number of searches.
It found that “pump and dump” showed the highest increases in searches, followed by fiat currency.
Here are the top 10 trading terms ranked by increases in Google search interest
1: Pump and Dump
Search interest increase: 265%
Definition: An illegal bid to artificially inflate the price of their stock through publishing misleading statements in order to sell cheaply purchased stock at a higher price.
2: Fiat Currency
Search volume increase: 211%
Definition: A government-issued currency like pound sterling (£) or the US dollar ($) that is not backed by a commodity such as gold.
3: OTC (over the counter) Trading
Search volume increase: 186%
Definition: A decentralised market in which people trade stocks or other instruments directly between two parties without a central broker or exchange.
4: Averaging Down
Search volume increase: 125%
Definition: Investing strategy that involves a stock owner purchasing additional shares of a previous investment following a price drop.
5: Call Option
Search volume increase: 116%
Definition: Financial contracts that give option buyers the right to buy a stock, bond, commodity, or other asset or instrument at a specified price within a timeframe.
Search volume increase: 62%
Definition: In an IPO underwriting agreement, this is a provision or clause that allows the underwriter to change the number of shares that they plan to sell.
7: Trading volume
Search volume increase: 109%
Definition: The overall quantity of shares or contracts traded for a specified security over a set period of time.
8: Hedge fund
Search volume increase: 101%
Definition: Managed investments pools that sometimes use non-traditional strategies or asset classes.
9: Unborrowable stocks
Search volume increase: 100%
Definition: A stock that no one is willing to lend out to short-sellers.
10: Stock charts
Search volume increase: 91%
Definition: A price chart that shows a stock’s price plotted over a set time.