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39 great Acronyms for trading

Acronyms used in trading

acronym

An acronym is an abbreviation consisting of the capital letters of each word. For example, TA represents ‘Trading Average’. The word formed by the initial letters is often spoken as a word, as in NATO

Below are 39 acronyms that refer to trading terms. Most of which are also used in the trading of cryptocurrencies.

 AcronymDefinition
AMLAnti-
Money Laundering
AML is a broad term for laws and regulations put in place to stop criminals from getting money illegally or transferring illicit funds. These laws are aimed at incidents like tax evasion, public corruption, and market manipulation through methods such as wash trading.
AONAll
Or
None
An order that once placed must be filled entirely or not at all, consequently preventing the incomplete filling of orders, ensuring that the entire volume will be at the same price.
APAC Asia –Pacific Countries
ASICApplication-Specified Integrated CircuitIntegrated circuits that have been designed to serve a particular use event, in contrast to general-purpose circuits, like CPUs that power our computers and mobile devices. In Cryptocurrencies, ASIC devices have a role in the process of mining Bitcoin and other Cryptocurrencies, therefore Bitcoin and altcoins, cannot be considered ASIC-resistant.
ATHAll
Time
High
An acronym which is associated with the highest price that a trading pair has reached on an exchange.
BePBreak-
even
Point
The point that total cost and total revenues are equal. There is no profit or loss at this point, and all the expenses which must have been paid are covered. Compare this to Breakeven multiple.
CFDContract
for
Difference
This is a form of derivative trading. CFD trading permits speculation on the rising or falling prices of fast-moving global financial markets (or instruments) such as shares, indices, commodities, currencies and treasuries. CFD is illegal in the US.
CFD Contract
for Difference
The other acronym description of CFD is a method that enables individuals to trade and invest in an asset by engaging in a contract between themselves and a broker, instead of opening a position directly on a certain market. This is also illegal in the US.
CGT Capital Gains Tax
EEAEuro Economic AreaAustria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Lithuania, Liechtenstein, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, United Kingdom.
ETFExchange-Traded Funds.An acronym used in Cryptocurrency trading relating to companies owned stocks that have business operations in blockchain technology or in some way profit from it.
FCAFinancial Conduct AuthorityThe United Kingdom’s financial regulatory body. FCA is the successor to the FSA or Financial Services Authority.
DMADirect
market access
DMA is a way of placing trades directly onto the order books of exchanges. Therefore, DMA offers traders flexibility and transparency when trading. However, due to the risks and complexities involved, it is usually recommended for advanced traders only.
FX Forex, Foreign Exchange, currencies
GDPGross Domestic ProductGDP is the total value of the goods and services produced in a country over a specified period. The GDP is used as an indicator of the size and health of a country’s economy.
IRRInternal
Rate of Return
The standard rate of return. See MIRR
IPOInitial
Public Offering
IPO is representative of a company going public on the Stock Exchange. Otherwise known as floating, flotation, or just ‘going public’.
LSE London Stock Exchange
MAMoving AverageA common indicator in technical analysis. MA is used to examine the price movement of assets while also reducing the impact of random price spikes.
MACDMoving Average Convergence/ divergenceMACD is a technical analysis indicator that aims to identify changes in a share price’s momentum. The MACD assembles data from different moving averages to assist traders in identifying possible opportunities around support and resistance levels.
MIRRModified Internal
Rate of Return
MIRR is used to assess the cost and profitability of a future project for a company. MIRR assumes that positive cash flows are reinvested at the cost of capital, and that cash outlays are funded at the current financing cost.
MTFsMultilateral Trading FacilitiesMTFs offers traders and investment firms an alternative to traditional exchanges. MTFs allows trading of a wider variety of markets than most exchanges, including assets that may not have an official market.
NYSE New York Stock Exchange
OBVOn-
Balance Volume
OBV is a form of technical analysis which enables traders to make predictions about future price movements based on the asset’s previous trading volume. OBV is used mostly in shares trading because the volume has an especially large influence on the way share prices move.
OTCOver-
The-
Counter
OTC is a trade that is not made on a formal exchange. This term is also referred to as off-exchange trading.
OTMOut of
The
Money
OTM is one of three terms used to address an option’s ‘worth’, with the other two being at the money and in the money. An OTM options contract has not yet reached the value of its strike price, meaning it has no intrinsic value and will expire worthlessly.
RORRate
Of
Return
ROR is the gain or loss of an investment over a certain period expressed as a percentage of the initial cost of the investment. Positive ROR shows that a profit has been made. Negative ROR indicates a loss. All investments have a Rate Of Return.
ROEReturn
on
Equity
ROE is a measure of a company’s profitability against its equity, expressed as a percentage. In other words, it is how much income the company is generating relative to the amount of capital received from shareholder investments.
ROIReturn
ON Investment    
ROI is a profitability measure that evaluates the performance of a business by dividing net profit by net worth. ROI is the most common profitability ratio. In trading, ROI is the difference between the initial investment and the closing price expressed as a percentage.
RNSRegulatory News
Service
The RNS is responsible for disseminating regulatory and non-regulatory information on behalf of UK businesses and publicly listed companies. Operating as part of the London Stock Exchange (LSE), the RNS provides businesses with information that can help them to comply with their disclosure obligations.
ROCEReturn
on
Capital Employment
The acronym ROCE is a long-term profitability ratio that measures how effectively a company uses its capital. The metric shows the profit generated by each dollar (or another unit of currency) employed.
RSIRelative Strength IndexRSI is a tool used in technical analysis, assessing the momentum of assets to gauge whether they are in overbought or oversold territory.
SEC Securities & Exchange Commission(The US only) SEC is a government agency set up to regulate markets and protect investors in the United States, it also oversees any mergers and acquisitions.
SOFRSecured Overnight Financing RateSOFR is an acronym referring to the overnight interest rate for US dollar-denominated loans and derivatives.
SORSmart
Order
Router
SOR is an automated process used in online trading that follows a set of rules when looking for trading liquidity. The goal of a SOR is to find the best way of executing a trade.
SONIASterling
Over
night Interbank Average
SONIA is the effective overnight interest rate paid by banks for unsecured transactions in British sterling – these are loans that are not backed by collateral. It is the overnight funding charge for trades that occur in off-market hours and represents the amount of overnight business in the marketplace.
TAThe very common acronym, Technical Analysis.
Va
R
Value
at
Risk
VaR is a measurement applied when considering the financial risk to a company, investment portfolio or open position over a period of time. VaR estimates the potential for loss and the probability that this loss will occur.
VWAPVolume-Weighted Average
Price
The acronym VWAP is a technical analysis tool that gives the ratio of an asset’s price to its total trade volume. VWAP provides traders and investors with a measure of the average price at which a stock is traded over a given period of time.
BNA

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