Trading Glossary Explained

Trading is a complex process, which includes many actions that a person unfamiliar with the financial world will find puzzling. Once you launch your trading career, you will be swamped with trading terms whose meaning you will not know. You will not immediately grasp how the market value of a business differs from its book value. Nor will you understand what CPI stands for and how it is different from IPO, unless we supply you with a glossary of all confusing terms that you meet in a trading business.

To help you avoid confusion, we have compiled a comprehensive glossary of financial terms used at the markets. All trading glossary is presented in our glossary in the alphabetical order and is explained with linguistic precision. Any financial term that sounds baffling to you now will become crystal clear once you read its definition in our glossary below.

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There are currently 6 names in this directory beginning with the letter Y.

Yen

The monetary unit of Japan.

Yield Spread

A yield spread is the difference between yields on differing debt instruments of varying maturities, credit ratings, issuer, or risk level, calculated by deducting the yield of one instrument from the other. This difference is most often expressed in basis points (bps) or percentage points.

Yield Tilt Index Fund

A yield tilt index fund is a type of fund that invests in stocks or securities that mirrors the holdings of a market index but contains a higher weighting towards higher-yielding investments. A yield tilt index fund can be a mutual fund, which is a basket of securities that are actively managed by a portfolio or fund manager.

Yield-Based Option

A yield-based option allows investors to buy or sell calls and puts on the yield of a security rather than its price.

YOY

Abbreviation for year over year.

Yuan

The yuan is the base unit of currency in China. The renminbi is the name of the currency in China, where the Yuan is the base unit.