Glossary · Risk & money management
Black swan
A rare, unpredictable event with extreme market impact, such as the 2015 Swiss franc de-peg.
Related terms
Flash crash
A sudden, very fast price collapse and rebound, usually in thin…
Gap
A jump between one price and the next with no trading in between,…
Backtesting
Testing a strategy on historical data to see how it would have…
Correlation
A measure from −1 to +1 of how closely two pairs move together.…
Drawdown
The fall from an account’s peak to its lowest point before a new…
Equity curve
A chart of account value over time. A smooth, rising curve with…