Sales Growth: The growth in sales in a company.
Sales Load: A service charge of a mutual fund that is added to the costs of owning a stake in the fund.
Same day transaction: A transaction that matures on the day the transaction takes place
Saucer Base: Similar to a cup and handle formation, but the saucer base is shallower and rounder in shape.
Savings and Loan Investment Contracts (SLICs): A negotiated-term deposit issued by a savings and loan.
Scallop: Chart formation in which the price dips momentarily, forming a cup, before resuming its upward course.
Scalp: In commodities, purchasing and selling in equal amounts so there is no net position at the end of the trading day; a speculative attempt to make a quick profit by buying at the initial offering price in the hope the issue will increase and can be sold.
Seasonal Autocorrelation: Autocorrelation that shows up at 12-, 24-, 36- and 48-month lag intervals or at four, eight, 12 and 16 quarterly lags.
Seasonal Trend: A consistent but short-lived rise or drop in market activity that occurs due to predictable changes in climate or calendar.
Seasonality: A consistent and predictable change in market activity that occurs from consistent and predictable events.
Sector Fund: A mutual fund that concentrates on trading a range of securities within a broad industry group, such as technology, energy or financial services.
Sector Rotation: When a block of investment professionals cash out of one industry sector to invest in another.
Secular Trend: Pertaining to a long indefinite period of time.
Security Selection Ratio: The percentage of trades in a given account that liquidate profitably.
Seed: The first value used to start a calculation. For example, an exponentially smoothed moving average (EMA) uses the previous day’s EMA for the calculation. On the first day’s calculation of the EMA, you could use a simple moving average as the seed for the EMA.
SelectNet: A NASDAQ execution technology.
Self-Affine Transformation: A rescaling procedure used in fractal geometry and performed on a two-variable system. For example, in a system utilizing an x-axis and y- axis representing time and price, the x-axis could be rescaled by one ratio and/or procedure while the y-axis is rescaled by a different ratio and/or procedure.
Selling rate: Rate at which a bank is willing to sell foreign currency
Selling Short: Selling a security and then borrowing the security for delivery with the intent of replacing the security at a lower price. In futures trading, selling short is to assume the responsibility of the seller vs. the buyer in the establishment of the futures contract between parties.
Semilog: Scaling method. With semilog, the distance between each point of a chart is exponential. Semilog scaling is used to compare relative price changes rather than physical point changes.
Sensitivity: The rate of change of the moving average in response to the movement of the underlying data. The most sensitive period is that in which the rate of change of the moving average is fastest in response to changes in the sinewave.
Serial Correlation: The systematic relationship between successive observation of a time series.
Serially Independent: A number that is unrelated to the previous number in a given series in any way.
Settlement: The price at which all outstanding positions in a stock or commodity are marked to market. Typically, the closing price.
Settlement date: The date upon which foreign exchange contracts settle.
Settlement Risk: Where a payment is made to a counter party before the counter value payment has been made. The risk is that the counter party’s payment will not be received
Shapiro-Wilkes Test: A statistical test indicating the likelihood that the sample of simulated net returns was drawn from a normal distribution. A small value of this statistic leads to nonacceptance of the null hypothesis that the sample is drawn from a normal distribution.
Shareholder of Record: Share owner of company stock as registered in company files.
Shaved Candlestick: In candlestick charting, when the shadows of a candle which mark the area between the real body and the extremes and give the appearance of being wicks are absent.
Short Interest: Shares that have been sold short but not yet repurchased.
Short Interest Ratio: A ratio that indicates the number of trading days required to repurchase all of the shares that have been sold short. A short interest ratio of 2.50 would tell us that based on the current volume of trading, it will take two and a half days’ volume to cover all shorts.
Short sale: The sale of a specified amount of currency not owned by the seller at the time of the trade. Short sales are usually made in expectation of a decline in the price
Short-term interest rates: Normally the 90 day rate.
Sidelined: A major currency that is lightly traded due to major market interest being in another currency pair
Signal: In the context of stock or commodity time series historical data, this is usually daily or weekly prices.
Signal Line: In artificial intelligence, a numeric variable that is prevalued in the knowledge base. In moving average jargon, the first moving average is smoothed by a second moving average. The second moving average is the signal line.
Signature Medallion Guaranty: Program used by banks and other institutions to verify a signature.
Significance: The probability of rejection on the basis of a statistical test and a hypothesis that there is no validity to the specific claim that two variations of the same thing can be distinguished by a specific procedure.
Simple Moving Average: The arithmetic mean or average of a series of prices over a period of time. The longer the period of time studied (that is, the larger the denominator of the average), the less impact an individual data point has on the average.
Simple Regression: A mathematical way of stating the statistical linear relationship between one independent and one dependent variable.
Sinewave: A wave whose amplitude varies as the sine of a linear function of time.
Skew: A descriptive measure of lopsidedness in a distribution.
Slippage: (1.) The difference between estimated transaction costs and actual transaction costs. (2.) Refers to the negative (or depreciating) pip value between where a stop loss order becomes a market order and where that market order may be filled
SMA: See Simple Moving Average.
Small Order Execution System (SOES): Computerized system developed by NASDAQ for immediate electronic execution of up to 1,000 shares of stock.
Smoothing: Simply, a mathematical technique that removes excess data variability while maintaining a correct appraisal of the underlying trend.
Soft Market: More potential sellers than buyers, which creates an environment where rapid price falls are likely.
Specialist: A trader on the market floor assigned to fill bids/orders in a specific stock out of his/her own account when the order has no competing bid/order to ensure a fair and orderly market.
Specify: To set the parameters and variables of a given model.
Spectrum: The frequency decomposition of time series data. This is used to detect periodic fluctuations or cycles in historical price data.
Spike: A sharp rise in price in a single day or two; may be as great as 15-30%, indicating the time for an immediate sale.
Spline: The linear interpolation between two adjacent points on a curve.
Spot: (1.) The most common foreign exchange transaction. (2.) Spot or Spot date refers to the spot transaction value date that requires settlement within two business days, subject to value date calculation
Spot Month: In trading, the current contract month. Also known as the front month.
Spot next: The overnight swap from the spot date to the next business day
Spot Prices: (1.) Same as cash price, the price at which a commodity is selling at a particular time and place. (2.) The price at which the currency is currently trading in the spot market
Spread: (l.) The difference between the bid and ask price of a currency. (2.) The difference between the prices of two related futures contracts. (3.) A trade in which two related contracts/stocks/bonds/options are traded to exploit the relative differences in price change between the two.
Spread Rolls: Using a spread order to bridge the closing of one position and the establishment of a new one.
Spring: A two-day pattern in which on the first day, the market declines below a support point, while the next day sees the market move strongly back up into the congestion area.
Spring: Another term for upthrust; occurs when price moves above a pivot top and a widespread reversal ensues as follows: (1.) two previous closes are reversed, (2.) close is below pivot top, (3.) close is below opening and mid-range, d) daily price range is greater than the previous day’s range.
Square: Purchase and sales are in balance and thus the dealer has no open position
Squeeze: Action by a central bank to reduce supply in order to increase the price of money
Stable market: An active market which can absorb large sale or purchases of currency without major moves
Stair-stepping: In which market activity is characterized by a trend, then sideways movements, followed by another trend and further sideways movement.
Standard Error of the Estimate (SEE): A measure of absolute fit. One can use this measure to compare the last portion of this model with another portion of the same dependent variable.
Standardized Unanticipated Earnings: (SUE) A company’s average earnings surprise is compared with analyst earnings estimates dispersion, which can be used to estimate the likelihood of earnings surprises.
Stationarity: A distribution of a quantity that does not change over time.
Stationary Time Series: Implies that no trend is observed in the time series. Identified when the time series has a constant mean and variance.
Sterilization: Central Bank activity in the domestic money market to reduce the impact on money supply of its intervention activities in the FX market
Sterling: British pound, otherwise known as cable
Stochastic: Literally means random.
Stochastics Oscillator: An overbought/oversold indicator that compares today’s price to a preset window of high and low prices. These data are then transformed into a range between zero and 100 and then smoothed.
Stock Index Futures: A futures contract traded that uses a market index as the underlying instrument. Typically, the value of the contract is $500 times the underlying index. The delivery mechanism is usually cash settlement.
Stocky: Market slang for Swedish Krona
Stop and Reverse (SAR): A stop that, when hit, is a signal to reverse the current trading position, i.e., from long to short. Also known as reversal stop .
Stop Loss: The risk management technique in which the trade is liquidated to halt any further decline in value.
Stop-Running: After a trend, the market will enter into a trading range and have a tendency to trade to levels where stop-loss orders have been placed.
Stops: Buy stops are orders that are placed at a predetermined price over the current price of the market. The order becomes a “buy at the market” order if the market is at or above to the price of the stop order. Sell stops are orders that are placed with a predetermined price below the current price. Sell-stop orders become “Sell at the market” orders if the market trades at or below the price of the stop order.
Straddle: The purchase or sale of an equivalent number of puts and calls on an underlying stock with the same exercise price and expiration date.
Strange Attractor: A balance point between a set of conflicting forces.
Strangle: The purchase or sale of an equivalent number of puts and calls on an underlying stock with the same expiration date but a different exercise price. Usually, the put has a low strike price and the call has a higher strike price.
Street Name: Stock ownership in which shares are registered to a brokerage or other financial institution and held.
Strike Price: The price per unit at which the holder of an option may receive or deliver the underlying unit; also known as the exercise price .
Strips: An option strategy in which an investor buys one call and two puts on the same underlying security with the same exercise price and expiration date.
Struck: The price at which an exercised option delivers the underlying securities.
Sum of Squared Residuals (SSR): Measure related to the R-squared value and the smaller the number, the higher will be the R-squared, and the better the regression.
SuperDot: NYSE execution technology.
Support: A historical price level at which falling prices have stopped falling and either movedsideways or reversed direction; usually seen as a price chart pattern.
Support levels: When an exchange rate depreciates or appreciates to a level where (1) Technical analysis techniques suggest that the currency will rebound, or not go below; (2) the monetary authorities intervene to stop any further down ward movement
Support Line: On a chart, a line drawn indicating the price level at which falling prices have stopped falling and have moved sideways or reversed direction.
Swaps: The sale of one security to purchase another with similar features.
Swap price: A price as a differential between two dates of the swap
Swing Chart: A chart that has a straight line drawn from each price extreme to the next price extreme based on a set criteria such as percentages or number of days. For example, percentage price changes of less than 5% will not be measured in the swing chart.
Swings: The measurement of movement of the price of a tradable between extreme highs and lows.
Swissy: Market slang for Swiss Franc
Synergistic Market Analysis: Also known as synergistic analysis . An analytical method that merges technical and fundamental analysis with an emphasis on intermarket analysis.
Synthetic Indices: are assets created to simulate the real-world market movement but with a slight difference — they are not affected by real-life events. It is only available under Deriv, these indices are based on a cryptographically secure random number generator that’s audited by an independent third party to ensure that they cannot be manipulated or tampered with. Synthetic indices have constant volatility and are free of market and liquidity risks.
Synthetic Securities: Security created by buying and writing a combination of options that imitate the risk and profit profile of a security.