Trading and market terminology

Plain definitions of terms used across forex, crypto, gold, indices and risk management.

A

• Asian SessionThe Asian Session refers to the period in the foreign exchange market when trading activity predominantly occurs in the Asian financial markets, especially Tokyo.

M

• Micro LotA micro lot is a trading position that represents 1,000 units of the base currency in Forex trading. It allows traders to manage risk effectively while participating in the market.

S

• Sharpe RatioThe Sharpe Ratio is a measure that quantifies the risk-adjusted return of an investment portfolio. It compares the portfolio's excess return relative to its standard deviation.