S

• Safe Haven: A financial instrument or asset where the risk of it losing its value is relatively low.
• Saint Helena Pound (SHP): Saint Helena Pound. The currency of Saint Helena, Ascension and Tristan da Cunha. It is subdivided into 100 pence.
• Same Day Transaction: A transaction that matures on the day the transaction takes place.
• Sandwich Spread: Same as a butterfly spread.
• Saudi Riyal (SAR): Saudi Riyal. The currency of Saudi Arabia. It is subdivided into 100 halalas.
• Scalp: A scalp in trading is the act of opening and then closing a position very quickly, in the hope of profiting from small price movements.
• Scalping: A trading strategy that benefits from small price movements. Scalping is a quick trade that usually last a few minutes or less.Trading can happen on many time frames where scalping is the shortest time frame a person trades. The time frames from shortest to longest: Scalping, daytrading, swing trading and investing.The profit target is usually small and the trader is usually happy with making a tiny profit after spread and commission cost.
• SDR: Special Drawing Right. A standard basket of five major currencies in fixed amounts as defined by the IMF.
• SEC: The Securities and Exchange Commission. The SEC stands for the US Securities and Exchange Commission. It is a government agency set up to regulate markets and protect investors in the United States, as well as overseeing any mergers and acquisitions.
• Sector: A group of securities that operate in a similar industry. Sectors are divisions within an economy or market, useful for analysing performance or comparing companies with similar outputs and characteristics.
• SELL: Taking a short position in expectation that the market is going to go down.
• Seller/Grantor: Also known as the option writer.
• Selling Rate: Rate at which a bank or money dealer is willing to sell foreign currency. The rates are determined by the dealers themselves and these rates can be quoted as cash, traveller’s checks, or as a credit card purchase. The selling rate is used more often in the retail exchange markets.
• Sell Limit Order: A pending order to sell at a predefined price higher than the market price in anticipation that the market will eventually decline.
• Selloff: Substantial sale of a financial instrument with rapidly declining prices. It is usually characterised by panic amongst traders.
• Selling Short: A situation where a currency has been sold with the intent of buying back the position at a lower price to make a profit.
• Sell Stop: A pending order to sell at a predefined price lower than the market price, in anticipation that the market will continue to decline.
• Sell Stop Limit: A pending order that combines the Sell Stop and Sell Limit Orders. It allows a trader to specify a price lower than the current price that when reached, a Sell Limit ordered is placed at a higher price level.
• Sentiment: The investors’ expectations about the direction of a financial instrument or market.
• Separating Lines (Bearish Continuation): Japanese candlestick bearish continuation pattern. During the course of a downtrend, the appearance of a long white candlestick is common, as a correction is part of the prevailing trend. The Next candlestick is a long black body opening at the same price level as the opening of the previous white candlestick but eventually closing lower, signaling the continuation of the downtrend.
• Separating Lines (Bullish Continuation): Japanese candlestick bullish continuation pattern. During the course of an uptrend, the appearance of a long black candlestick is common, as a correction is part of the prevailing trend. The next candlestick is a long white body opening at the same price level as the opening of the previous black candlestick, signaling the continuation of the uptrend.
• Serbian Dinar (RSD): Serbian Dinar.  The currency of Serbia.  It is subdivided into 100 paras.
• Serial Expiration: Options on the same underlying futures being contract which expire in more than one month.
• Series: All options of the same class which share a common strike price and expiration date.
• Settlement: The process by which a trade is entered into the books, recording the counterparts to a transaction. The settlement of currency trades may or may not involve the actual physical exchange of one currency for another. The transfer of ownership of a financial instrument to a buyer. Actual physical exchange of one currency for another.
• Settlement Date: It means the business day specified for delivery of the currencies bought and sold under a forex contract. The date by which an executed order must be settled by the transference of instruments or currencies and funds between buyer and seller.
• Settlement Price: The official closing price for a future set by the clearing house at the end of each trading day.
• Settlement Risk: Risk associated with the non settlement of the transaction by the counter party.
• Seychelles Rupee (SCR): Seychelles Rupee. The currency of the Seychelles. It is subdivided into 100 cents.
• Shadow: The vertical line than extends above and below the body/real body of a Japanese candlestick. It defines the range between the high and the low price for the specific period.
• Share buyback: Share buyback, or share repurchase, is when a company buys back its own shares from investors. It can be seen as an alternative, tax-efficient way to return money to shareholders. Once shares are repurchased they are considered cancelled, but they can be kept for redistribution in the future.
• Share price: A share price – or a stock price – is the amount it would cost to buy one share in a company. The price of a share is not fixed, but fluctuates according to market conditions. It will likely increase if the company is perceived to be doing well, or fall if the company isn’t meeting expectations.
• Shares : Shares are the units of the ownership of a company, usually traded on the stock market. They are also known as stocks, or equities.
• Shares Trading: Share trading has a particular significance in relation to IG’s platform. Here, we define share trading in general investing and explain what it means to you when trading with IG.
• SHGA.X: Symbol for the Shanghai A index.
• Shooting Star: Japanese candlestick bearish pattern. A Shooting Star formed at the end of an uptrend or at a resistance area has bearish reversal implications. Traders enter the market with long positions but eventually the sellers’ pressure overcomes buyers’ pressure and the candlestick closes at the lower area of the Shooting Star. The small body and the long upper shadow reveals the weakness of the bulls, who are unable to maintain the upward move.
• Short Contracts: Contracts with up to six months to delivery.
• Short-Covering: After a decline, traders who earlier went short begin buying back. Buying to unwind a shortage of a particular currency or asset.
• Short Forward Date/Rate: The term short forward refers to period up to two months, although it is more commonly used with respect to maturities of less than one month.
• Short Position: An investment position that benefits from a decline in market price. When the base currency in the pair is sold, the position is said to be short. Another Definition: Opposite of a long position, this involves taking a position that benefits from a currency’s decline in market price. When the base currency within the pair is eventually sold, then the position is assumed to be short. In trading, short describes a trade that will incur a profit if the asset being traded falls in price. It is also often referred to as going short, shorting or sometimes selling. A market position where the client has sold a currency he does not already own. Usually expressed in base currency terms.
• Short Selling: The sale of a financial instrument to be bought later at a lower price. Short selling is the act of selling an asset that you do not currently own, in the hope that it will decrease in value and you can close the trade for a profit. It is also known as shorting.
• Short Squeeze: A situation in which traders are heavily positioned on the short side and a market catalyst causes them to cover (buy) in a hurry, causing a sharp price increase.The pressure on short sellers to cover their positions as a result of sharp price increases.
• Short-Term Interest Rates: Normally the 90 day rate.
• Shorts: Traders who have sold, or shorted, a product, or those who are bearish on the market.
• Sidelined: A major currency that is lightly traded due to major market interest being in another currency pair.
• Side-by-Side White Lines (Bearish Continuation): Japanese candlestick bearish continuation pattern. During a downtrend, a black candlestick is followed by two white candles that gap down-their high price is lower than the black candle’s low price. The two white candles open at about the same price and have a similar body size.
• Side-by-Side White Lines (Bullish Continuation): Japanese candlestick bullish continuation pattern. During an uptrend, a white candlestick gaps above the previous white candle thus creating a rising window. The third white candle opens near the preceding open, creating a bullish continuation pattern.
• SIDELINES, SIT ON HANDS: Traders staying out of the markets due to directionless, choppy or unclear market conditions are said to be on the sidelines or sitting on their hands.
• Signal Line: The 9-period Simple Moving Average of the Moving Average Convergence/Divergence (MACD). It may also refer to a moving average of any other oscillator.
• Silver : XAG
• SIMEX: Singapore International Monetary Exchange
• Simple Moving Average (SMA): A simple average of a pre-defined number of price bars. For example, a 50 period daily chart SMA is the average closing price of the previous 50 daily closing bars. Any time interval can be applied. A trend following indicator. It also known as arithmetic moving average. It is calculated by adding the closing (other prices may also be used like open, high low, typical, median etc.) price of a number of candlesticks (equal to the time period of the moving average) and then dividing this number by the total number of prices. The result is known as the average. The oldest price is then dropped (i.e. discarded from the calculation) and the same formula is applied to the next prices. Therefore, it becomes the moving average.
  • • Simple Moving Average = [Price(n) + Price(n-1) + Price(n-2) + … + Price(1)] / n
    • Where n is the period of the moving average.
• Singapore Dollar ( SGD): Singapore Dollar. The currency of Singapore. It is subdivided into 100 cents.
• SITC: Standard International Trade Classification. A system for reporting trade statistics in a common manner.
• Slippage: The difference between the price that was requested and the price obtained typically due to changing market conditions. “Slippage” is a term used to describe when a trader executes a trade that goes through at a higher price than initially expected. This tends to occur during times of high volatility, when investors make use of stop-loss orders and market orders.Another Definition- This is when a trader executes an order at a price which is very different to the price they expected the trade to be executed at. This usually happens during periods of high volatility, when traders use market orders and stop loss orders. Slippage is the difference between the expected price of a trade, and the price the trade actually executes at. Slippage often occurs during periods of higher volatility, when market orders are used. In forex slippage occurs when a limit order or stop loss occurs at a worse rate than originally set in the order. Slippage often occurs when volatility, perhaps due to news events, makes an order at a specific price impossible to execute. In this situation, most forex dealers will execute the trade at the next best price.
• Slippery: A term used when the market feels like it is ready for a quick move in any direction.
• SLL: Leone. The currency of Sierra Leone. It is subdivided into 100 cents.
• Sloppy: Choppy trading conditions that lack any meaningful trend and/or follow-through.
• Smart order router: A smart 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 an SOR is to find the best way of executing a trade.
• Smithsonian Agreement: Agreement by members of the Group of Ten countries in December 1971 on a realignment of currencies and a new set of pegged exchange rates. The Group of Ten (G-10) nations consisted of Belgium, Canada, France, Germany, Italy, Japan, the Nether-lands, Sweden, the United Kingdom, and the United States.In March 1973 the agreement broke down and the G-10 nations announced that they would let their currencies float.
• SNB: Swiss National Bank, the central bank of Switzerland.
• Snake in the tunnel: The snake in the tunnel was the first attempt at European monetary cooperation in the 1970s, aiming at limiting fluctuations between different European currencies. It was an attempt at creating a single currency band for the European Economic Community (EEC), essentially pegging all the EEC currencies to one another.With the failure of the Bretton Woods system with the Nixon shock in 1971, the Smithsonian agreement set bands of plus/minus 2.25% for currencies to move relative to their central rate against the US dollar. This provided a tunnel in which European currencies to trade. However, in practice it implied a larger bands in which they could move against each other.The tunnel collapsed in 1973 when the US dollar floated freely. The snake proved unsustainable, with several currencies leaving and in some cases rejoining.
• Soft Commodity: A soft commodity is a commodity such as coffee, cocoa, sugar, corn, wheat, soybean and fruit. This term generally refers to commodities that are grown, rather than mined. Soft commodities play a major part in the futures market. They are used both by farmers wishing to lock-in the future prices of their crops, and by speculative investors seeking a profit.
• SOFFEX: Swiss Options and Financial Futures Exchange, a fully automated and integrated trading and clearing system.
• Soft Currency: Soft Currency means a weak currency. The values of soft currencies fluctuate often, and other countries do not want to hold these currencies due to political or economic uncertainty within the country with the soft currency. Soft currency may depreciate rapidly or that is difficult to convert into other currencies. Currencies from most developing countries are considered to be soft currencies. Often, governments from these developing countries will set unrealistically high exchange rates, pegging their currency to a currency such as the U.S. dollar. Opposite of a hard currency, a soft currency is one that is often hit hardest by economic and political events and thus is generally considered to be unstable. For example, both the Zimbabwean Dollar (ZWD) and North Korean Won (KPW) are routinely labelled “soft currencies”.Another Definition- A currency that is sensitive to political and economic events and thus fluctuates greatly and is generally unstable.
• Soft Market: More potential sellers than buyers, which creates an environment where rapid price falls are likely.
• SOL ( PEN): Sol. The currency of Peru. It is subdivided into 100 centimos.
• Solomon Islands Dollar (SBD): Solomon Islands Dollar. The currency of the Solomon Islands. It is subdivided into 100 cents.
• SOM ( KGS): Som.  The currency of Kyrgyzstan.  It is subdivided into 100 tyiyn.
• Somali Shilling ( SOS): Somali Shilling. The currency of Somalia. It is subdivided into 100 senti.
• Somoni ( TJS): Somoni. The currency of Tajikistan. It is subdivided into 100 diram.
• Sonia: The Sterling Overnight Index Average (SONIA) is the effective overnight interest rate that banks pay to borrow sterling overnight from other financial institutions. It’s used for overnight funding of trades that occur in off-hours, replacing LIBOR.
• South Sudanese Pound (SSD): South Sudanese Pound. The currency of South Sudan. It is subdivided into 100 piasters.
• Sovereign Immunity: Legal doctrine which means that the state cannot be sued or have its assets seized.
• Sovereign Names: Refers to central banks active in the spot market.
• Sovereign Risk: Sovereign Risk is the risk that a foreign central bank will alter its foreign-exchange regulations thereby significantly reducing or completely nulling the value of foreign-exchange contracts.
  • •  (1) Risk of default on a sovereign loan
    • (2) Risk of appropriation of assets held in a foreign country. Split Date See Broken Date.
• Speculator: Representing a specific type of trader, anyone who is classified as a speculator is willing to take big risks while trading. The hope is that by embracing increasing levels of risk, the eventual profit return will be high.Another Definition- A trader in financial markets who aims to gain from anticipated future market moves.
• Spike: Used to describe a sharp downward or upward movement in currency price that occurs during a short space of time. Contrary to popular belief that a spike can only describe an upward trend, in the world of forex, it has also been used to describe a downward trend.Another Definition- A sudden upward or downward movement in price that happens in a short time period.
• Spoofing: Spoofing is a market manipulation technique where somebody try to trigger other orders in the market. Limit orders are sent to the market and then canceled quickly and possibly making an impact in the market.In a general sense spoofing is to try to give a false impression. For example somebody trying to pretend they are something they are not in order to gain confidence and then take advantage of that false confidense.Spoofing in the financial markets is done mostly through algorithms.In practice spoofing can be done by posting a relatively large amount of buy limit orders. This could create an impression that there are a large amount of buyers in the order book. This could drive the price up by a small amount momentarily. The large amount of limit orders are canceled before the order is filled. If the price has been driven up by this spoofing the manipulator can sell at a small but higher price.In the U.K., the Financial Conduct Authority and the courts are authorised to fine spoofers. According to the FCA, “Abusive strategies that act to the detriment of consumers or market integrity will not be tolerated.”Spoofing was made illegal in the U.S. by the Dodd-Frank Act of 2010 under Section 747, in which the practice is defined as “bidding or offering with the intent to cancel the bid or offer before execution.”
• Spot: In trading, spot refers to the price of an asset for immediate delivery, or the value of an asset at any exact given time. It differs from an asset’s futures price, which is the price for delivery at some date in the future, or its expected price.
  • • (1) The most common foreign exchange transaction.
    • (2) Spot refers to the buying and selling of the currency where the settlement date is two business days forward.
• Spot Market: A market whereby products are traded at their market price for immediate exchange.
• Spot Month: The contract month closest to delivery or settlement.
• Spot Next: The overnight swap from the spot date to the next business day.
• Spot Price-Rate: The current market price. Settlement of spot transactions usually occurs within two business days. The current market price of a financial instrument. The price at which the currency is currently trading in the spot market.
• Spot Trade: The purchase or sale of a product for immediate delivery (as opposed to a date in the future). Spot contracts are typically settled electronically.
• Spot Week: A standard period of one week swap measured from the current value date of the currency spot rate.
• Spread: The difference between the bid and offer prices. The spread represents the difference between the ask and bid price of any currency pair. In most instances, this figure represents brokerage service costs and replaces transactions fees, with it usually presented in pips. It should be noted the spread could take on one of three forms through a fixed spread, a fixed spread with an extension, and a variable spread. In finance, the spread is the difference in price between the buy (bid) and sell (offer) prices quoted for an asset. The spread is the difference between the buy and sell (bid and ask) price in a market.In the Forex market the spread is smaller between the major currency price than more exotic currency pairs.In the Forex market the bid and sell price are set by the broker and most often includes the commission for the trade.The broker may change the spread depending on which time of the day it is. At some times during the day or night there may be times which little trading and liquidity and the broker may increase the spreads during those hours.The spread is usually measured in pips, which is the smallest unit of price movement of a currency pair. For most currency pairs, one pip is equal to 0.0001. An example of a 4 pip spread for EUR/USD would be 1.1051/1.1053. This quote indicates a spread of 2 pips. The difference between the bid and ask price of a currency. Spreads are also the difference between the price of two related futures contracts, and for options, one can purchase one option and sell another option of the same series. It is important to note how spreads for assets are determined. It can be number of shares available for trading, interest in a specific stock, or total trade activity of a stock.
  • • (1)The difference between the bid and ask price of a currency.
    • (2) The difference between the price of two related futures contracts.
    • (3) For options, transactions involving two or more option series on the same underlying currency.
• Sprint: A sprint is a type of simplified digital 100 option, differing from standard digital 100s in their expiry and pricing. They are also known as sprint markets, and are only available with IG.
• SPX500: A name for the S&P index.
• Square: Purchase and sales are in balance and thus the dealer has no open position.
• Squawk Box: A speaker connected to a phone often used in broker trading desks.
• Squeeze: Action by a central bank to reduce supply in order to increase the price of money.
• Sri Lanka Rupee (LKR): Sri Lanka Rupee. The currency of Sri Lanka. It is divided into 100 cents.
• Stable Market: An active market which can absorb large sale or purchases of currency without having any major impact on the interest rates.
• Stagflation: Recession or low growth in conjunction with high inflation rates.
• Standard: A term referring to certain normal amounts and maturities for dealing.
• Stand by Credit: An arrangement with the IMF for draw downs on a “need” basis. The term is sometimes more generally used.Standard and Poors S-P: A US firm engaged in assessing the financial health of borrowers. The firm also has generated certain stock indices i.e. S&&P 500.
• Standard Deviation: It is a statistical term denoted by the Greek letter (sigma). It is calculated by the following steps:
  • • Calculate the mean for a population of n prices (i.e. close)
    • Subtract each price from the mean and then square the result
    • Sum all squared differences and then divide by the population n
    • Take the square root of the above
    • Or
    • Square root of the sum of the squared difference from each closing price to the mean and then dividing by the population (i.e. number of prices).
    • Standard Deviation formula:  
    • 68% of the values (prices) will fall within the range of 1 standard deviation of the mean
    • 95% of the values (prices) will fall within the range of 2 standard deviations of the mean
    • 99.7% of the values (prices) will fall within the range of 3 standard deviations of the mean
• Standard Deviation Channel: A Technical Analysis tool based on the Linear Regression Trendine and the specified number of Standard Deviations. It is attached on the chart by selecting the first price representing the beginning of the trend and then dragging the mouse to the second price in the direction of the trend.
  • • It consists of three lines:

1. 1. 1. Linear Regression Trendline
      2. Upper Channel Line
      3. Lower Channel Line

• • • 68% of the prices will fall within the range of 1 standard deviation of the Linear Regression Trendline
    • 95% of the prices will fall within the range of 2 standard deviation2 of the Linear Regression Trendline
    • 99.7% of the prices will fall within the range of 3 standard deviations of the Linear Regression Trendline.Prices trading above or below the Channel Lines hint for a reversal.
• Standard Lot: 100 000 units of the base currency.
• Starbucks Index: The Starbucks Index is a representation of purchasing power parity, similar to the Big Mac index, published by The Economist that determines what a country’s exchange rate would need to be in order for a Starbucks tall latte to cost the same as it does in the United States. Using this index, the purchasing power of each individual national currency can be reflected in the U.S.-dollar cost of a latte in that country.
• STD: Dobra. The currency of Sao Tome and Principe. It is subdivided into 100 centimos.
• Sterling: A nickname for the British pound or the GBP/USD (Great British Pound/U.S. Dollar) currency pair.
• Sterling Index: A index based on the movement of sterling against the major currency.
• Sterilization: Central Bank activity in the domestic money market to reduce the impact on money supply of its intervention activities in the forex market.
• Stick Sandwich: Japanese Candlestick bullish pattern. During a downward movement, this three-line pattern consists of two long black candles and a white candle in the middle. The two black candles close at the same price level, while the white candle extends higher than the previous black body.
• Stochastic Oscillator: It is a momentum oscillator developed by George Lane. It determines where the price closed relative to a specific price range over a chosen time period. It is based on the premise that prices tend to close near the upper end of the candlestick during upward price movements whereas they tend to close near the lower end of the candlestick during downward movements. It consists of two lines; %K and %D.
  • • %K=(Current Close-Lowest Low)/(Highest High-Lowest Low) x 100
    • Current Close – represents the latest closing price
    • Lowest Low – represents the lowest price for a specific time period
    • Highest High – represents the highest price for a specific period
    • Specific Period – is by default 5
    • Range – is the difference of Highest High – Lowest Low
    • The %D is a 3 (default value) period Simple Moving Average of %K.
    • The formula for %D is:
    • %D = SMA (%K,3)
    • This is known as fast stochastics.
    • By taking an additional 3-period Simple Moving Average of %D and %K, slow stochastics are calculated:
    • %K = SMA(%K,3)
    • %D = SMA(%D,3)
    • The Stochastic Oscillator ranges between 0 and 100.
    • A reading of 0 means that the latest closing prices is equal to the lowest price of the price range over the chosen time period. A reading of 100 means that the latest closing price is equal to the highest price recorded for the price range over the chosen time period.
    • Also, a reading above 80 is considered to be an indication that the market has reached extreme overbought levels, whereas a reading below 20 means that the market has declined to extreme oversold levels.
    • The Stochastic Oscillators follows the general rules of oscillator analysis:
    • Signals are generated by the crossover between the %K and the %D line.
    • A buy signal is generated when %K crosses above the %D line at the oversold area below 20 and then %D rises above the 20-line.
    • A sell signal is generated when %K crosses below the %D line at the overbought area above 80 and then %D falls below the 80-line.
    • Divergence between price and Stochastics especially at the oversold and overbought areas hints for a potential turning point in the market.
• Stock analysis: Stock analysis is the method used by a trader or investor to examine and evaluate the stock market. It is then used to make informed decisions about buying and selling shares. Stock analysis can also be referred to as market analysis, or equity analysis.
• Stockbroking: Stockbroking is a service which gives retail and institutional investors the opportunity to trade shares.
• Stock Exchange: A market on which securities are traded. A stock exchange is a centralised location where the shares of publicly traded companies are bought and sold. Stock exchanges differ from other exchanges because the tradable assets are limited to stocks, bonds and exchange traded products (ETPs).
• Stock Index: The combined price of a group of stocks – expressed against a base number – to allow assessment of how the group of companies is performing relative to the past. A stock index is a group of shares that are used to give an indication of a sector, exchange or economy. Usually, a stock index is made up of a set number of the top shares from a given exchange.
• Stock symbol : A stock symbol is an abbreviation used to identify publicly traded companies. When a company decides to go public, it will select the exchange to list on and then choose a unique stock symbol to differentiate itself from other companies on the exchange.
• Stocky: Market slang for Swedish Krona.
• Stop Top Entry Order: This is an order placed to buy above the current price, or to sell below the current price. These orders are useful if you believe the market is heading in one direction and you have a target entry price.
• Stop Loss Hunting: When a market seems to be reaching for a certain level that is believed to be heavy with stops. If stops are triggered, then the price will often jump through the level as a flood of stop-loss orders are triggered.
• Stop Loss Order: This is an order placed to sell below the current price (to close a long position), or to buy above the current price (to close a short position). Stop loss orders are an important risk management tool. By setting stop loss orders against open positions you can limit your potential downside should the market move against you. Remember that stop orders do not guarantee your execution price – a stop order is triggered once the stop level is reached, and will be executed at the next available price. A market order to either buy or sell a currency when it hits a certain price. Generally speaking, a stop-loss order is placed in order to control losses occurring (or due to occur) in a set position. Order given to ensure that , should a currency weaken by a certain percentage, a short position will be covered even though this involves taking a loss. Realize profit orders are less common.
• Stop Order: A stop order is an order to buy or sell once a pre-defined price is reached. When the price is reached, the stop order becomes a market order and is executed at the best available price. It is important to remember that stop orders can be affected by market gaps and slippage, and will not necessarily be executed at the stop level if the market does not trade at this price. A stop order will be filled at the next available price once the stop level has been reached. Placing contingent orders may not necessarily limit your losses. Stop orders are types of order that instruct your broker to execute a trade when it reaches a particular level: one which is less favourable than the current market price. They can also be known as stop-loss orders.
• Stop Out Price: US term for the lowest accepted price for Treasury Bills at auction.
• Stops Building: Refers to stop-loss orders building up; the accumulation of stop-loss orders to buy above the market in an upmove, or to sell below the market in a downmove.
• Straddle: A straddle in trading is a type of options strategy, which enables traders to speculate on whether a market is about to become volatile without having to predict a specific price movement. It involves either buying or selling simultaneous call and put options with matching strike prices and expiration dates. The simultaneous purchase/sale of both call and put options for the same share, exercise/strike price and expiry date.
• Strap: A combination of two calls and one put.
• Strike Price: The defined price at which the holder of an option can buy or sell the product. In options trading, the strike is the price at which a contract can be exercised, and the price at which the underlying asset will be bought or sold. It is also known as the strike price. Also called exercise price. The price at which an option holder can buy or sell the underlying instrument.
• Strip: A combination of two puts and one call.
• Structural Unemployment: Unemployment levels inherent in an economic structure.
• Sudanese Pound ( SDG): Sudanese Pound. The currency of the Sudan. It is subdivided into 100 piasters.
• Sunday trading with IG: Sunday trading is a service that enables you to speculate on several markets over the weekend.
• Supply Side Economics: The concept is that tax cuts will boost investment leading to an increase in the supply of goods in the economy. To be compared with demand led Keynesian economics.
• Support: A price that acts as a floor for past or future price movements. A price level usually defined as a previous bottom, where buying pressure overcomes selling pressure. As a result, prices may find it difficult to break below.
• Support Levels: A technique used in technical analysis that indicates a specific price ceiling and floor at which a given exchange rate will automatically correct itself. Opposite of resistance. A support level is the price at which an asset may find difficulty falling below as traders look to buy around that level.
• Support-Resistance Zones: Technical analysts identify support/resistance zones where price action is expected to either face significant pressures for a reversal or where a breakout/breakdown can extend the previous trend. Zones give a much better indication than single price points such as intra-day highs and intra-day lows; while a single price point can offer insight about price action as a bigger move is unfolding, zones offer a clear picture with regard to the strength of a trend. Whenever price action reaches a support/resistance zone, technical analysts will apply additional tools in order to assess the next move.A support zone refers to a price range which has previously prevented price action from extending a move lower. A confirmed support zone is an area where bullish momentum should be expected to increase at the expense of bearish momentum. Once price action reaches a support zone, technical analysts apply other aspects of technical analysis in order to assess the potential for a price action reversal. A confirmed breakdown below a support zone is often accompanied by an increase in sell orders as the downtrend will extend.A resistance zone has the same effect in the opposite direction. A confirmed resistance zone which has previously prevented price action from extending a rally is where bearish momentum will rise as bullish momentum is fading. Further technical analysis is then required in order to assess a price action reversal potential as well as the likelihood of a breakout.
• Surinam Dollar ( SRD): Surinam Dollar. The currency of Surinam. It is subdivided into 100 cents.
• Suspended Trading: A temporary halt in the trading of a product.
• SVC: El Salvador Colon. The currency of El Salvador. It is subdivided into 100 centavos.
• Swap: A currency swap is the simultaneous sale and purchase of the same amount of a given currency at a forward exchange rate. The simultaneous purchase and sale of the same amount of a given currency for two different dates, against the sale and purchase of another. A swap can be a swap against a forward. In essence, swapping is somewhat similar to borrowing one currency and lending another for the same period. However, any rate of return or cost of funds is expressed in the price differential between the two sides of the transaction.
• Swap as a Percentage: Swaps expressed as an annualized percentage.
• Swap Free Fee: After the swap-free period expires, the account will be charged with the Swap Free Fee for every night it remains open.
• Swap Long/Short: A swap in forex refers to the interest that you either earn or pay for a trade that you keep open overnight. There are two types of swaps: Swap long (used for keeping long positions open overnight) and Swap short (used for keeping short positions open overnight). They are expressed in pips per lot, and vary depending on the financial instrument you’re trading.
• Swap Price: A price as a differential between two dates of the swap.
• Swaption: An option to enter into a swap contract.
• Swedish Krona( SEK): Swedish Krona. The currency of Sweden. It is subdivided into 100 ore.
• Swift: Society for Worldwide Inter-bank Financial Telecommunication is a clearing system for international trading.
• Swiss Franc ( CHF): Swiss Franc. The currency of Switzerland and Liechtenstein. It is subdivided into 100 Rappen.
• Swissie: The nickname for the Swiss franc or the USD/CHF (U.S. Dollar/Swiss Franc) currency pair.
• Swing Trading: A trading strategy that aims to make potential profits by taking advantage of a financial instrument’s change in price direction. Swing trading mostly refers to a trading strategy that has a time horizon that is longer than day trading. The holding time for a swing trade is usually between a day to a week.A swing trade typically tries to ride the ebb and flow of the market price. Buying when the price starts rising and then selling before it starts going down.The goal is to capture a part of a move in the prices and then be out of the market when that move has run its course. That makes it possible to capture more profit than just a simple day trade. But on the other hand also makes the trade vulnerable to over night risks such as price gaps. A shorter time frame than long term investing is limiting the risk of noise and other unexpected events associated with of long term investing.Technical analysis may be useful to combine with swing trading in order to identify possible buy and sell price levels.
• Synthetics: Options or futures that create a position that able to be achieved directly but is generated by a combination of options and futures in the relevant market. In foreign exchange a SAFE combines two forward contracts into a single transaction where settlement only involves the difference in values.
• Systemic Risk: The risk associated with an event that can trigger substantial uncertainty and loss of confidence in the financial markets, financial system or even the whole economy.
• SZL: Lilangeni. The currency of Swaziland. It is subdivided into 100 cents.