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Terms beginnings with 'H'
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Hawk (ish)
Is a policymaker or an advisor that favors high interest rates in order to keep inflation in check; Such policy or statement made by this advisor are called hawkish; hawk is opposite of dove. -
Head and Shoulders
A chart pattern indicating that the current trend is about to reverse. When it is formed, the price rises to a peak and declines, then grows to create an even higher peak, drops, and rises one more time to roughly the same height as the first rise. The first and third peaks form 'the Shoulders' while the second is 'the Head'. The dips between peaks mark 'the Neckline'. -
Hedge fund
Privately managed financial partnerships that use invested funds to earn active returns and employ different strategies, often quite aggressive in nature. -
Hedging
In the Forex market, hedging is a strategy applied to minimise risks of losses. The primary approach towards hedging in Forex is to open a position in the same currency pair but opposite to the initial position. In this case, the balancing transaction is referred to as a hedge. So, if an investor holds GBPUSD long, they'll need to short the same amount of GBPUSD as a counterbalance. Importantly, hedging should not be considered an earning strategy—it's merely a short-term form of limited protection. -
High-frequency trading (HFT)
A complex type of Algorithmic Trading where large numbers of orders are executed in seconds. While it adds liquidity to the markets, it's inaccessible by ordinary traders and eliminates small spreads.
