P

Pension

A pension is a long-term savings scheme that involves putting money away, whilst employed, for retirement. Regular amounts put into pension schemes build up over time and then provide an income, and p...

Passive management

Passive management is an investing style whereby investment portfolios try and generate returns that mirror the returns of the underlying constituents of the portfolios. Portfolios may be built using ...

Passive investment

Passive investment is an investment strategy which seeks to track a benchmark or an index, rather than outperform it (the aim of active investment).

Pattern Day Trader

FINRA rules define a “pattern day trader” as any customer who executes four or more “day trades” within five business days, provided that the number of day trades represents more than six perc...

Primary Market

Markets in which newly issued securities are sold to investors and the issuer receives the proceeds.

Profit and Loss

A profit and loss (P&L) statement is a financial report that provides a summary of a company’s revenue, expenses and profit. It gives investors and other interested parties an insight into how a...

Position

A position is the expression of a market commitment, or exposure, held by a trader. It is the financial term for a trade that is either currently able to incur a profit or a loss – known as an open ...

Pip Value

The pip value is the price attributed to a one-pip move in a forex trade – it is often used when referencing a position’s losses or gains. The meaning of pip value can vary between currencies, but...

Pip

A pip is a measurement of movement in forex trading, used to define the change in value between two currencies. The literal meaning of pip is ‘point in percentage’, and it is the smallest standard...

Pullback

A pullback is a temporary pause or dip in an asset’s overall trend. The term is sometimes used interchangeably with ‘retracement’ or ‘consolidation’. However, a pullback should not be confus...