CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when trading in CFDs. You should consider whether you can afford to take the high risk of losing your money.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when trading in CFDs. You should consider whether you can afford to take the high risk of losing your money.

Here’s a handy guide to all those financial terms you here

Please choose a letter to see the list of terms.

Glossary of terms

# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
There are currently 3 glossary in this directory beginning with the letter R.
img Range Trading

The term ‘range trading’refers to areas in the financial markets when a market moves steadily between two prices or levels (or support and resistance areas) for a decisive period. These ranges can be used to provide trading opportunities in times when a market is not displaying an obvious long-term trend in either direction.

Examples of Range Trading

Rectangular Range - when a trader encounters a rectangular range and sees sideways or horizontal price movements between lower support and upper resistance levels.

Diagonal Range - diagonal ranges in the form of price channels are particularly common forex chart patterns.

Continuation Ranges -a continuation range is a chart pattern that unfolds within a trend. Triangles, wedges, flags, and pennants can all be categorised under this range.

Key Takeaways
  • The term ‘range trading’refers to areas in the financial markets when a market moves steadily between two prices
  • These ranges can be used to provide trading opportunities in times when a market is not displaying an obvious long-term trend in either direction.
  • Three common examples of ranges are Rectangular Range, Diagonal Range, Continuation Ranges
img Ranging Trend

The term ranging trend is referred to when we see prices for financial assets hit the same highs and lows numerous times in a row. When a price hits the same [support]and [resistance]levels a minimum of three times in a row it is referred to as a ranging market.

Traders will keep an eye out for new trading opportunities by looking to buy or sell an asset when the price breaks through either a support or a resistance level. The term ‘breakout’ is used to describe the situation when sellers suppress the buyers and break through the established support level, because of which, traders may look to sell.

Range traders generally believe that no matter in which direction a financial asset moves, it will most likely return to its point of origin.It is also a common assumption that prices will surpass the same levels many times, and therefore the goal is to repeatedly reap the benefits of those oscillations over a period of time.

----- Key Takeaways
  • The term ranging trend is referred to when we see prices for financial assets make the same highs and lows numerous times in a row.
  • Range traders generally believe that no matter in which direction a financial asset moves, it will most likely return to its point of origin.
  • When a price hits the same support and resistance levels a minimum of three times in a row it is referred to as a ranging market.
img Resistance Levels

The terms support and resistance levels are by far the two most commonly used terms of technical analysis. Technical analysis is the most widely used trading analysis approach by traders and investors and entails the use of various charting tools to generate short-term trading signals. It is a technique that is applicable to any financial asset with historical trading data.

If a trader sees the market price is moving close to a resistance level, they may decide to close their position and take the profit, because there is a chance the price may fall back and they lose any profit they haven’t already locked in. Traders will often identify areas of resistance (and support) in order to make decisions on trades, including where to place stop losses and take profits.

Resistance levels can be identified on charts using [trendlines] and [moving averages].

Key Takeaways
  • Technical analysts useresistance levels to identify price points on a chart to help them make trading decisions.
  • Resistance occurs where an uptrend is expected to pause temporarily– i.e. there is resistance from the market.
  • Using resistance levels in trading is a technique that is applicable to any financial asset with historical trading data.

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Important Disclaimer:
CFDs are leveraged products that incur a high level of risk and a small adverse market movement may expose the client to lose the entire invested capital. The vast majority of retail investor accounts lose money when trading CFDs with Credit Financier Invest Limited. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. The possibility exists that you could sustain a loss in excess of your deposited funds even if a stop loss is used and therefore, you should not speculate with capital that you cannot afford to lose and be aware of trading risks. Credit Financier Invest Limited provides general information that does not take into account your objectives, financial situation or needs We recommend you read our full Risk Disclaimer.

We do not currently offer our investment /ancillary services to residents of certain jurisdictions such as but not only USA, Sudan, Syria, Republic of Korea and Belgium.

CFI does not offer advice, recommendation or opinion with respect to buying, selling or holding of CFDs. We do not issue financial and/ or otherwise advice to clients.