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Definition of the Hang Seng Index The Hang Seng Index (HSI) is the main stock market index for Hong Kong. Think of it as Hong Kong’s version of the Dow Jones or S&P 500. It tracks the performance of the largest and most influential companies listed on the Hong Kong Stock Exchange, including banks, real estate developers, and tech giants.

Definition of Nikkei 225 The Nikkei 225 is a price-weighted stock market index made up of 225 blue-chip companies across multiple industries in Japan. “Price-weighted” means companies with higher stock prices carry more influence on the index, regardless of their total market size. It’s published by the Nihon Keizai Shimbun (that’s where “Nikkei” comes from—Japan’s leading financial newspaper). First introduced in 1950, it’s considered the leading indicator of Japan’s overa

Definition of DAX The DAX, short for Deutscher Aktienindex (German Stock Index), is Germany’s version of the S&P 500 or Dow Jones. It tracks the 40 largest and most liquid companies listed on the Frankfurt Stock Exchange. Think of it as a snapshot of Germany’s corporate heavy-hitters—big names like Siemens, Adidas, BMW, Volkswagen, and Deutsche Bank often appear in this list.

Definition of FTSE 100 When you hear people in the financial world talk about “the FTSE,” they’re usually referring to the FTSE 100 Index(pronounced “Footsie 100”). It’s the stock market index of the 100 largest companies listed on the London Stock Exchange (LSE) by market capitalization.

Definition of Russell 2000 Index The Russell 2000 is a stock market index that tracks the performance of about 2,000 smaller publicly traded companies in the U.S. It’s considered the best measure of how small-cap stocks (companies with relatively small market values) are doing. While the S&P 500 gets all the headlines for tracking America’s biggest corporations, the Russell 2000 gives you a peek into the health of the smaller players that make up the backbone of the U.S. eco

Definition of Nasdaq The Nasdaq (short for the National Association of Securities Dealers Automated Quotations) is both a stock exchange and a stock market index. It’s known for being the world’s first electronic exchange, launched in 1971, and is home to many of the largest technology and growth companies, including Apple, Microsoft, Amazon, and Tesla.

Definition of S&P 500 The S&P 500 (short for Standard & Poor’s 500) is one of the most well-known stock market indexes in the world. It tracks the performance of 500 of the largest publicly traded companies in the United States, covering industries like technology, healthcare, finance, energy, and consumer goods.

Definition of Dow Jones The Dow Jones Industrial Average (DJIA)—often just called “the Dow”—is one of the most widely recognized stock market indexes in the world. It tracks the performance of 30 large, publicly owned companies based in the United States. These companies span multiple industries, making the Dow a quick snapshot of how the stock market—and in many ways, the economy itself—is doing.

Definition of an Index An Index is a measurement tool that tracks the performance of a group of assets—usually stocks or bonds—so investors can see how a particular market or segment of the market is doing. Think of it as a financial scoreboard. The most famous indexes include the S&P 500, which follows 500 of the largest U.S. companies, and the Dow Jones Industrial Average, which tracks 30 major corporations.

Definition of Market Sentiment Market sentiment is the overall mood of investors about the market (or a specific stock, sector, or asset). Are people feeling optimistic (bullish), pessimistic (bearish), or just…meh (neutral)? That collective mood often shows up in prices, trading volume, and volatility.

Definition of Market Depth Market depth shows how much real buying and selling interest exists at different prices for a stock, ETF, or crypto. It’s the stack of limit orders waiting in line—how many shares are bid below the current price and how many are offered above it. Deeper markets = more shares at many price levels = easier to trade without moving the price.

Quick Definition of Liquidity Liquidity is how fast you can turn something you own into spendable cash without losing much value. Cash in your checking account? Ultra-liquid. A rare trumpet from 1930? Cool… but not liquid.

Definition of Volume Volume is the number of shares (or contracts) traded in a security during a set time period (minute, day, week, etc.). It tells you how busy the market was for that ticker. More trades = higher volume.

Definition of Bid-Ask Spread (Plain English) The bid-ask spread is the tiny gap between what buyers are willing to pay (the bid) and what sellers are asking to receive (the ask) for a stock, ETF, crypto, or any traded asset. That gap is a built-in cost of doing business—like a small toll to cross the bridge between “I want it” and “I own it.”

Definition of Market Maker A market maker is a firm (or algorithm) that constantly offers to buy and sell a stock, ETF, or option—posting two prices (a bid and an ask)—so there’s always someone on the other side of your trade. They earn a small profit from the spread between those two prices and keep the market moving.

Definition of High-Frequency Trading High-Frequency Trading (HFT) is algorithm-driven, ultra-fast trading that uses powerful computers and direct exchange connections to place thousands of orders in milliseconds. Think “race cars on Wall Street”—built for speed, tuned for tiny price edges.

Definition of Dark Pool A dark pool is a private trading venue where large investors (think pension funds or big institutions) buy and sell stocks away from public exchanges like the NYSE or Nasdaq. Prices aren’t displayed to everyone in real time, which helps big orders get filled without tipping off the whole market.

Definition of Block Trade A block trade is a very large order to buy or sell a security—typically 10,000+ shares of stock (excluding penny stocks) or $200,000+ in bonds—executed privately or off the open exchange to avoid moving the market price. These trades are usually arranged through an investment bank or a broker’s “block desk.”

Definition of Day Order When you place a stock trade, one of the key decisions you make is how long that order should stay active. A Day Order is one of the most common choices. Simply put, a Day Order is valid only for the trading day in which it was placed. If the market doesn’t meet your terms before the close, the order expires automatically. No overnight carry, no surprises the next day.

Definition of Fill or Kill If you like your stock orders the way you like your coffee—exactly how you want it or not at all—then you’ll appreciate the Fill or Kill order. A Fill or Kill (FOK) order tells the market: “Fill the entire order immediately at my stated price (or better), or cancel it right now.” There’s no partial fill, no waiting, and no compromise.