Financial Dictionary
Look up the terms traders use every day, from forex and CFDs to indicators and chart patterns. Pick a letter to browse its terms, then open any term to read its definition.
Terms starting with K
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The Kelly criterion is a formula for sizing positions based on a strategy's win rate and average win and loss. Many traders use a fraction of it, because the full amount can lead to large swings.
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Keltner Channels place bands above and below an exponential moving average, set at a multiple of Average True Range. Moves outside the bands can signal strong momentum or stretched prices.
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A key reversal is a candle that makes a new high in an uptrend but closes below the previous close, or a new low in a downtrend but closes above it. It can signal a turn in direction.
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Know your customer is the process providers use to verify a client's identity and background before opening an account. It helps prevent fraud and money laundering.