PAID: Refers to the offer side of the market dealing.
PAIR: The forex quoting convention of matching one currency against the other.
PANELED: A very heavy round of selling.
PARABOLIC: A market that moves a great distance in a very short period of time, frequently moving in an accelerating fashion that resembles one half of a parabola. Parabolic moves can be either up or down.
PARTIAL FILL: When only part of an order has been executed.
PATIENT: Waiting for certain levels or news events to hit the market before entering a position.
PERSONAL INCOME: Measures an individual’s total annual gross earnings from wages, business enterprises and various investments. Personal income is the key to personal spending, which accounts for 2/3 of GDP in the major economies.
PIPS: The smallest unit of price for any foreign currency, pips refer to digits added to or subtracted from the fourth decimal place, i.e. 0.0001.
POLITICAL RISK: Exposure to changes in governmental policy which may have an adverse effect on an investor’s position.
PORTFOLIO: A collection of investments owned by an entity.
POSITION: The net total holdings of a given product.
PREMIUM: The amount by which the forward or futures price exceeds the spot price.
PRICE TRANSPARENCY: Describes quotes to which every market participant has equal access.
PROFIT: The difference between the cost price and the sale price, when the sale price is higher than the cost price.
PULLBACK: The tendency of a trending market to retrace a portion of the gains before continuing in the same direction.
PURCHASING MANAGERS INDEX (PMI): An economic indicator which indicates the performance of manufacturing companies within a country.
PURCHASING MANAGERS INDEX SERVICES (FRANCE, GERMANY, EUROZONE, UK): Measures the outlook of purchasing managers in the service sector. Such managers are surveyed on a number of subjects including employment, production, new orders, supplier deliveries and inventories. Readings above 50 generally indicate expansion, while readings below 50 suggest economic contraction.
PUT OPTION: A product which gives the owner the right, but not the obligation, to sell it at a specified price.
