Welcome to Chweya’s Financial Terms Glossary — your go-to resource for clear and simple definitions of common financial and economic terms. Whether you’re a beginner looking to understand the basics or an experienced investor brushing up on terminology, this glossary is designed to help you navigate the financial world. Explore the terms below to gain more confidence in your financial decisions.
- Accumulate Swing Index (ASI) Technical Indicator
- Accumulation Area: Meaning, Identification, and Trading Importance
- Aggressors
- Algorithmic Trading: Definition, How it Works, Pros and Cons
- Andrews' Pitchfork Technical Analysis Tool Explained
- Arbitrage: How It Works in Investing, With Examples
- Aroon Indicator Explained: Meaning, and Calculation
- Aroon Oscillator – Definition, Calculation Formula, Trade Signals
- Ascending Channel: Definition, Trading Strategies and Examples
- Ascending Triangle
- Ask Price: Definition and How It Works in Trading
- Asymmetric Slippage: Meaning, How It Works, and Why It Matters in Trading
- Austerity: Meaning, Purpose, and How Austerity Measures Work
- Average Directional Index (ADX)
- Average True Range (ATR) Indicator for Measuring Market Volatility
- Awesome Oscillator: Meaning, How It Works, and How to Use It in Trading
- Bail-In: Meaning, How It Works, and Why It Matters
- Bailout: Meaning, How It Works, and Why It Matters
- Bank Levy: Meaning, How It Works, and Why It Matters
- Bank Run: Meaning, Causes, Risks, and Real Examples
- Base Currency: Meaning, Role, and Importance in Finance and Forex
- Basis Point: Meaning, Calculation, and Importance in Finance
- Bear Flag Pattern: What is it and How to Trade?
- Bearish Engulfing Pattern
- Bearish Sentiment: What It Means, Why It Happens, and How Traders Respond
- Bear Trap: How to Avoid False Sell Signals in Trading
- Beige Book: Definition, Purpose, and Role in Monetary Policy
- Bid/Ask Spread: Definition, Importance, and How It Affects Your Trading
- Bid Price: Meaning, Examples, and Why It Matters in Trading and Investing
- Bill Auction: Meaning, Process, and Why It Matters
- Bitcoin Block in Crypto and How Does it Work
- Bitcoin Cash: Meaning, Features, and Why It Matters in Crypto Today
- Bitcoin: The World’s First Decentralized Digital Currency
- Blockchain: How It Works, Its Uses, and Why It Matters
- Bollinger Bands Indicator
- Bond: Meaning, How It Works, Types, and Examples
- Bond Yield: Meaning, Types, and Why It Matters
- Breakeven Point: Definition, Formula, and Why It Matters
- Bretton Woods Agreement (1944)
- BRICS: Meaning, History, Members, Goals, and Global Impact
- Broadening Formation: Meaning, Structure, Types, and Trading Insights
- Broker Dealer (B-D): Meaning, Role, Regulations, and How It Works
- Bullish Belt Hold: Meaning, Formation, and How Traders Use It
- Bullish Engulfing Pattern Explained for Traders
- Bull Market: Meaning, Examples, and How It Works
- Bull Trap: Meaning, Examples, and How Traders Can Avoid It
- Buy Limit Order
- Buy Stop Order: Meaning, How It Works, and When Traders Use It
- Capital Markets Authority of Kenya: Function, History, and Impact
- Carry Trade: Meaning, Strategy, and How It Works
- CBOE Volatility Index (VIX): Meaning, Calculation, and Practical Uses
- Central Bank of Kenya: Roles, Functions, and Importance in the Kenyan Economy
- Central Bank (s) Roles, Functions and Its Impact on the Economy
- Central Counterparty Clearing House (CCP): Definition, Role, and Importance in Trading
- Central Depository and Settlement Corporation (CDSC)
- Central Limit Order Book (CLOB): How Modern Markets Match Orders
- Chartist: Definition, Role, and How Chartists Analyze Financial Markets
- Comdoll: Meaning, Importance, and Role in Forex Trading
- Commitments of Traders Report (COT): Meaning, Uses, and How Traders Interpret It
- Commodity: Definition, Types, and How Commodities Work
- Commodity Futures Trading Commission (CFTC)
- Commodity Trading Advisor (CTA): Definition and Guide
- Consumer Confidence Index (CCI): Meaning, Importance, and How It Works
- Consumer Price Index (CPI): Meaning, Importance, and Impact on the Economy
- Continuation Pattern: Meaning, Types, and Trading Strategies
- Cost of Carry: Meaning, Formula & Why It Matters in Trading
- Counterparty: Meaning, Importance, and Role in Finance
- Cross Currency: Meaning, Importance, and How It Works
- Cross Rate: Definition, Importance, and How It Works in Forex Trading
- Cup and Handle Pattern Trading Strategy
- Currency Devaluation: Meaning, Causes, and Economic Impact
- Currency Exposure: Meaning, Types, and Why It Matters
- Currency Futures: Meaning, How They Work, and Why They Matter
- Currency Hedging: Meaning, How It Works, and Why It Matters
- Currency Manipulation: Definition, Strategies, Economic Impact, and Global Debate
- Currency Pairs: Major, Minor, and Exotic Examples
- Currency Peg: Meaning, How It Works, Types, Pros & Cons
- Currency Spot Rate: Meaning, Calculation, and Real-World Examples
- Currency Symbol: Definition, Usage, and Common Examples
- Dark Cloud Cover Candlestick Pattern
- DAX Stock Index Explained: Meaning, Components, and How It Works
- Day Trader: Definition, and How It Works
- Dealer: Definition, Role, and How Dealers Operate in Financial Markets
- Debt-to-GDP Ratio: Meaning, Importance, and Why It Matters for Economies
- Deflation: Meaning, Causes, and Impact on the Economy
- Depreciation: Meaning, Types, Importance, and Real-World Examples
- Derivatives: Definition, Types, Uses, and Risks
- Diamond Top Formation
- Directional Movement Index (DMI) Formula, Calculations, Uses
- Direct Market Access (DMA)
- Direct Price Stream: What It Is, How It Works, and Why Traders Need It
- Dirty Float: Meaning, How It Works, Advantages, and Examples
- Discretionary Account: Meaning, How It Works, Benefits, and Risks
- Disparity Index: Meaning, Formula, and Example
- Divergence in Technical Analysis
- Dogecoin: Meaning, How It Works, and Why It Matters in Crypto Trading
- Doji: Meaning, Types, and How Traders Use It in Technical Analysis
- Double Bottom Pattern Explained
- Double Top Trading Pattern Explained
- Dovish Meaning, Market Impact, and the Hawkish vs Dovish Debate Explained
- Downtrend - Definition, Pattern, Examples, Trading Stategies
- Dow Theory: Meaning, Principles, and Importance in Finance
- Do Your Own Research (DYOR)
- East African Community (EAC): Meaning, Members, Goals, and Why It Matters Today
- Economic Calendar: Meaning, Types and Tools
- Economic Community of West African States (ECOWAS): Meaning, History, Goals, and Impact
- Economic Indicator
- Efficient Market Hypothesis (EMH)
- Electronic Communication Network (ECN): Meaning, How It Works, and Why Traders Use It
- Elliott Wave Theory Explained
- Emerging Markets: Definition, Key Features, Examples, and Why They Matter
- Employment Cost Index (ECI): Definition, Importance, and Market Impact
- Encryption: Definition, How It Works, and Why It Matters
- Entry Order: Meaning, Types, and How It Works in Trading
- Ethereum: Meaning, Definition, and How It Works
- Eurobond: Meaning, Types, Risks, and Why It Matters in Global Finance
- Eurodollar: Meaning, History, and Role in Global Finance
- Euro Interbank Offer Rate (Euribor)
- European Central Bank (ECB): Key Roles, Structure and Monetary Policy
- European Economic and Monetary Union (EMU)
- European Economic Area (EEA): Meaning, Countries, Benefits, and How It Works
- European Union (EU): Purpose, History and Member States
- Eurozone: Meaning, Structure, Benefits, and Challenges
- Evening Doji Star Candlestick Pattern
- Evening Star: A Guide to the Candlestick Reversal Pattern
- Exchange Controls: Definition, Purpose, Examples, and FAQs
- Exchange Rate: Meaning, How It Works, and Why It Matters
- Exotic Currency: Meaning, Risks, and Opportunities in Forex Trading
- Exponential Moving Average (EMA)
- Fakeout: Meaning and Why It Matters in Trading
- Falling Knife: Meaning, Risks, and Smarter Trading Decisions
- Falling Three Methods Pattern: What It Is and How It Works
- Federal Funds Rate: Definition, How It Works, and Why It Matters
- Federal Open Market Committee (FOMC)
- Federal Reserve: Meaning, Role, and Why It Matters
- Fibonacci Extension: Definition, Calculation, and Trading Applications
- Fibonacci Fan explained: To to use them in Technical Analysis
- Fibonacci Retracement
- Fibonacci Spiral: Meaning, How It Works, and Real-World Examples
- Fill Ratio: Meaning, Importance, and How It Affects Trading Execution
- Financial Leverage: Meaning, How It Works, Benefits, Risks, and Real Examples
- Fiscal Policy
- Forex Trading Robot : Definition, Functionality, and Costs Explained
- Forward Contracts: Meaning, How They Work, and Why They Matter
- FTSE: Understanding the UK’s Leading Stock Market Index
- Fuliza: Understanding Safaricom’s Mobile Overdraft Service
- Greenback: Meaning, History, and Importance in Finance
- Gross Domestic Product (GDP) Formula and How to Use It
- Hammer Candlestick: Meaning, Formation, and How Traders Use It
- Hanging Man Candlestick Pattern
- Hedge Fund: Definition, Strategies, and How They Work
- High-Frequency Trading (HFT): Basics, Mechanics, and Example
- Impact of Central Bank Intervention in Financial Markets
- Inflation: Meaning, Causes, Effects, and Why It Matters
- Insider Trading: Meaning, How It Works, and Why It Is Illegal
- Insurance Regulatory Authority of Kenya: Roles, Structure, and Importance
- Interest Rates: Definition, Types, and Impact on the Economy
- ISO Currency Code: Meaning, Importance and How It Works
- Jobless Claims: Meaning, Types, and Why They Matter
- Kenyan Shilling (KES): Overview, History
- Know Your Customer (KYC): Key Requirements and Compliance for Financial Services
- KUSCCO (Kenya Union of Savings & Credit Co-operatives): Its Role, Services, and Impact in Kenya
- MACD (Moving Average Convergence Divergence) Indicator Explained, with Formula and Limitations
- Margin and Margin Trading Meaning Plus Advantages and Disadvantages
- Margin Call – Meaning, How It Works, and Why It Matters in Trading
- Market Maker: Meaning, Role, and How It Works in Financial Markets
- Market Risk
- Micro Lot: Meaning, Uses, and Importance in Forex Trading
- Monetary Policy: Definition, Tools, and How It Works
- Money Management Explained: Learn the Basics of Financial Control
- Moving Average: Meaning, Types, and How Traders Use It
- M-Shwari - Meaning, Cost, Features Explained
- Nairobi Stock Exchange (NSE) - Definition, History, and Impact
- National Employment Report: Meaning, Importance, and How It Works
- National Futures Association (NFA): Meaning, Role, and Why It Matters in Trading
- Non-Convertible Currency: Meaning, Examples, and Why It Matters
- Non-Deliverable Forward (NDF): Meaning, How It Works and Why It Matters
- Non-Farm Payroll (NFP): What It Means and Why It’s Important
- North American Free Trade Agreement (NAFTA)
- Notional Value Explained: What It Means and Why It Matters in Finance
- Open Market Operations (OMO): Meaning, How They Work, and Why They Matter
- PesaLink: Definition and How It Works
- Pip Definition and How They Work in Currency Pairs
- Pochi La Biashara
- Political Risk: Meaning, Types, and Why It Matters
- Property Management - Definition, Roles, Types, and Duties
- Quantitative Easing (QE)
- Quote Currency Definition
- Recession: Meaning, Causes, Indicators, and Why It Matters
- Relative Strength Index (RSI): What It is and How to Use It
- Relative Vigor Index (RVI) Momentum Technical Indicator Explained
- Retirement Benefits Authority of Kenya: Mandate, Functions, and Impact
- SASRA (Sacco Societies Regulatory Authority): Its Roles, Licensing, Compliance, and Importance in Kenya
- Short Selling: Meaning, How It Works, and Why Traders Use It
- Speculation: High-Risk Trading With High Reward Potential
- Spinning Top Candlestick Pattern: Meaning, Formation, and How Traders Use It
- Standard Lot in Forex Trading: Definition, Meaning, and Examples
- Stochastic Oscillator - Overview, How to Calculate, and Uses
- Support Level: Meaning, Importance, and How It Works in Trading
- Swing Trading: Meaning, How It Works, Strategies, and Benefits
- Take Profit Order: Meaning, How It Works, and Why Traders Use It
- Technical Analysis
- The Baltic Dry Index: A Simple Guide to What It Means and Why It Matters
- The DeMarker (DeM) Indicator: Strategies & Validity
- Trading Account: Meaning, How It Works, and Why It Matters
- Trading Demo Account: Meaning, How It Works, and Why It Matters
- Trading Platform: Meaning, How It Works, and Why It Matters in Modern Trading
- Understanding a Bear Market
- Understanding Anti-Money Laundering (AML): Meaning, Laws, and Importance
- Understanding Appreciation in Finance
- Understanding Breakout Trading
- Understanding Chaikin Oscillator: Meaning, Formula, and Insights
- Understanding Confluence in Trading - Definition, Cost, Features Explained
- Understanding Contract for Difference (CFD)
- Understanding Convergence; Definition and How It Works
- Understanding Currency Option: Types, How it Works, and Benefits
- Understanding Currency Risk and Managing Exchange Rate Exposure
- Understanding Descending Channel Chart Patterns
- Understanding Falling and Rising Wedge Patterns in Trading
- Understanding Fear of Missing Out (FOMO) in Trading
- Understanding Integrated Payment Services Limited (IPSL)
- Understanding Mini Lot in Forex Trading
- Understanding Savings and Credit Cooperatives (SACCOs)
- Understanding Southern African Development Community (SADC)
- Understanding Stop Loss Orders and How They Are Used in Trading
- Understanding Swap: Definition, Uses, and Calculating Gains
- Understanding the Cboe EuroCurrency Volatility Index (EVZ)
- U.S. Dollar Index (USDX)
- USSD Code: Definition, How It Works, Uses, and Why It Still Matters
- Volatility: Meaning, Importance, and How It Affects Trading
- Weighted Moving Average (WMA)
- What Are Camarilla Pivot Points
- What are Spreads: Meaning, Types, and Why They Matter in Trading
- What is a Buck? Meaning, Origin, and Usage
- What Is a Bull: Definition, and Importance in Finance
- What Is a Negative Interest Rate Policy (NIRP)?
- What Is a Trendline?
- What is Discretionary Trading?
- What is M-Pesa: Definition, History and How It Works
- What is West Texas Intermediate Crude Oil (WTI)?
- What is Whipsaw in Trading
- What Is Xenocurrency?
- What Is Yield in Investment?
- What Marubozu Candlestick Pattern?
- WM/Reuters Benchmark Rates
- XRP
- Year-over-Year (YoY) - What it means, Formula and Examples
- Yield Chasing: Understanding the Risks and Better Investment Choices
- Yield Curve Control: How Central Banks Shape Interest Rates
- Zero Interest Rate Policy (ZIRP): Meaning, How It Works, and Why It Matters
- Zero Lower Bound (ZLB): Meaning, Causes, and Economic Impact