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Trading Glossary

Take a look at our list of the financial terms associated with trading and the markets. From beginners starting their trading journey to experts with decades of experience, all traders need to clearly understand a huge number of terms.

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Polkadot

Polkadot (DOT) fuses two blockchains: the main, relay chain, where transactions are permanently agreed upon, and user-generated chains. Tradeable in USD, Polkadot is priced in USD and uses the DOT/USD spot rate.

Volatility

What is Volatility?

Volatility is the amount of uncertainty or risk associated with the size of changes in a security's value. It is measured by calculating the standard deviation of returns over a given period. High volatility means the price of an asset can change dramatically over a short time period in either direction. Traders often take advantage of volatility by speculating on stocks, options, and other financial instruments.

What causes market volatility?
Market volatility can be caused by a variety of factors including economic data releases, political events, changes in interest rates, and unexpected news or events. It can also be caused by changes in investor sentiment, speculation and market manipulation.

How do you know if a market is volatile?
A market is considered volatile if prices change rapidly, unpredictably, and significantly. This can be measured using volatility indices or by analyzing price movements and fluctuations over time.

Palladium

Palladium has become popular with investors because it has a range of qualities that mean it is difficult to substitute with other metals. It belongs to a group of metals called platinum group metals (PMGs), and is 30 times rarer than gold.

Palladium is priced in USD per troy ounce. It reached a record high of $1126 in January 2018, and fell to an all-time low of $78.25 in August 1991.

Its industrial use is in catalytic converters, where it speeds up chemical reactions, but it is more durable than platinum. It is also popular in jewellery - when mixed with yellow gold it forms an alloy metal that looks like white gold but is much stronger.

Between 70 to 80% of the world output of palladium is produced in Russia and South Africa, so the price of the metal is strongly affected by the political climate in those countries.

Palladium futures allow you to speculate on, or hedge against, changes in the price of palladium. Futures rollover on the fourth Friday of March, May, August and December.

Platinum

Platinum is one of the world's rarest metals, and mines are concentrates in just a handful of countries around the world.

Platinum is priced in USD per troy ounce. It saw a high of $2253 in March 2008, and a record low of $97.70 in January 1970.

Most of the world's platinum is produced in South Africa, which accounts for 80% of supply. Russia is a distant second with 11% and North America produces 6%.

Platinum is an important metal due to its ability to catalyse reactions and its strong resistance to corrosion. This makes it irreplaceable in a broad range of industrial and laboratory reactions, especially the catalytic converter which is the most widely used application of platinum.

The metal is also highly sought-after for jewellery, which is the second largest area of demand,

The concentration of platinum in South Africa (an often-volatile emerging market), combined with the importance of platinum as an industrial material, has led to instability in price.

Poland 20

The WIG 20 Index, or Poland 20, is a blue-chip stock market index of the 20 most actively traded and liquid companies on the Warsaw Stock Exchange. Constituents are chosen from the top 20 companies trading on the Warsaw Stock Exchange as of the third Friday of February, May, August, and November.

The ranking is based upon turnover values for the previous 12 months and a closing price from the previous five trading sessions is used to calculate free float capitalisation.

The index has been calculated since 16th April, 1994 as a base value of 1,000 points. To keep the index diverse, no more than five companies from a single sector may be included in the index at any one time. Sectors covered by the index includes Commercial Banks, Oil & Gas Exploration & Production, Insurance, Metals Mining, and more.

Poland 20 futures allow you to speculate on, or hedge against, changes in the price of major stocks on the Warsaw Stock Exchange. Futures rollover on the 2nd Friday of March, June, September, and December.

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Polkadot

Polkadot (DOT) fuses two blockchains: the main, relay chain, where transactions are permanently agreed upon, and user-generated chains. Tradeable in USD, Polkadot is priced in USD and uses the DOT/USD spot rate.

Palladium

Palladium has become popular with investors because it has a range of qualities that mean it is difficult to substitute with other metals. It belongs to a group of metals called platinum group metals (PMGs), and is 30 times rarer than gold.

Palladium is priced in USD per troy ounce. It reached a record high of $1126 in January 2018, and fell to an all-time low of $78.25 in August 1991.

Its industrial use is in catalytic converters, where it speeds up chemical reactions, but it is more durable than platinum. It is also popular in jewellery - when mixed with yellow gold it forms an alloy metal that looks like white gold but is much stronger.

Between 70 to 80% of the world output of palladium is produced in Russia and South Africa, so the price of the metal is strongly affected by the political climate in those countries.

Palladium futures allow you to speculate on, or hedge against, changes in the price of palladium. Futures rollover on the fourth Friday of March, May, August and December.

Platinum

Platinum is one of the world's rarest metals, and mines are concentrates in just a handful of countries around the world.

Platinum is priced in USD per troy ounce. It saw a high of $2253 in March 2008, and a record low of $97.70 in January 1970.

Most of the world's platinum is produced in South Africa, which accounts for 80% of supply. Russia is a distant second with 11% and North America produces 6%.

Platinum is an important metal due to its ability to catalyse reactions and its strong resistance to corrosion. This makes it irreplaceable in a broad range of industrial and laboratory reactions, especially the catalytic converter which is the most widely used application of platinum.

The metal is also highly sought-after for jewellery, which is the second largest area of demand,

The concentration of platinum in South Africa (an often-volatile emerging market), combined with the importance of platinum as an industrial material, has led to instability in price.

Poland 20

The WIG 20 Index, or Poland 20, is a blue-chip stock market index of the 20 most actively traded and liquid companies on the Warsaw Stock Exchange. Constituents are chosen from the top 20 companies trading on the Warsaw Stock Exchange as of the third Friday of February, May, August, and November.

The ranking is based upon turnover values for the previous 12 months and a closing price from the previous five trading sessions is used to calculate free float capitalisation.

The index has been calculated since 16th April, 1994 as a base value of 1,000 points. To keep the index diverse, no more than five companies from a single sector may be included in the index at any one time. Sectors covered by the index includes Commercial Banks, Oil & Gas Exploration & Production, Insurance, Metals Mining, and more.

Poland 20 futures allow you to speculate on, or hedge against, changes in the price of major stocks on the Warsaw Stock Exchange. Futures rollover on the 2nd Friday of March, June, September, and December.

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Volatility

What is Volatility?

Volatility is the amount of uncertainty or risk associated with the size of changes in a security's value. It is measured by calculating the standard deviation of returns over a given period. High volatility means the price of an asset can change dramatically over a short time period in either direction. Traders often take advantage of volatility by speculating on stocks, options, and other financial instruments.

What causes market volatility?
Market volatility can be caused by a variety of factors including economic data releases, political events, changes in interest rates, and unexpected news or events. It can also be caused by changes in investor sentiment, speculation and market manipulation.

How do you know if a market is volatile?
A market is considered volatile if prices change rapidly, unpredictably, and significantly. This can be measured using volatility indices or by analyzing price movements and fluctuations over time.

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