A financial metric used to assess a firm’s financial health by revealing the proportion of money left over from revenues after accounting for the cost of goods sold. Gross profit margin serves as the source for paying additional expenses and future savings.

A rollover is when you do the following: 1. Reinvest funds from a mature security into a new issue of the same or a similar security. 2. Transfer the holdings of one retirement plan to another without suffering tax consequences. 3. Move a forex position to the following delivery date, in which case the rollover incurs a charge.

A pip is the smallest price move that a given exchange rate makes based on market convention.

The market in which currencies are traded. The forex market is the largest, most liquid market in the world with an average traded value that exceeds $1.9 trillion per day and includes all of the currencies in the world.

The quotation and pricing structure of the currencies traded in the forex market: the value of a currency is determined by its comparison to another currency. The first currency of a currency pair is called the “base currency”, and the second currency is called the “quote currency”.

Over-The-Counter (or OTC) trades securities that are listed off traditional exchanges such as the NYSE or the Nasdaq.

A hedge is an investment to reduce the risk of adverse price movements in an asset.

The calculation of a firm’s cost of capital, in which each source is weighted, is called the weighted average cost of capital.

Duration indicates the years it takes to receive a bond’s true cost, weighing in the present value of all future coupon and principal payments.

Operating margin is a measure of a company’s profitability, and an indicator of how well it is being managed and how risky it is.