Glossary of Terms

Search common forex trading terms and definitions from A to Z.

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Below is a glossary of terms that are used in the online trading industry. Select the first letter of the word you are seeking from the list above to jump to the appropriate section of the glossary.

Cap-Weighted Index

A stock index in which each stock is weighted according to its market capitalization. As a result, companies with a larger market-cap have more influence on price movements than companies with a lower market-cap. NASDAQ-100, the UK’s FTSE 100, France’s CAC 40 and Spain’s IBEX 35 are examples of cap-weighted indices.