Dry Powder
The cash reserve or liquid securities an investor keeps readily on hand to cover potential future costs and obligations, including any marketable securities that can be liquidated on short notice.
Related terms
Keep the Powder Dry
To limit trading due to inclement conditions. In choppy or extremely narrow markets, it may be better to stay on the sidelines until a clear opportunity arises.
Read full definitionLiquidity
How easily an asset can be converted into cash, or how readily a business can meet its short-term obligations. Strong liquidity means funds are available when and where they are needed.
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Aggressive
A description of traders and/or price action acting with conviction.
Read full definitionArbitrage
The simultaneous buying and selling of the same currency in different markets to profit from small price differences. The strategy exploits temporary inefficiencies in FX markets.
Read full definitionAt Best
An instruction given to a dealer to buy or sell at the best rate that can be obtained at a specific time.
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An instruction given to a dealer to buy or sell at a specific price or better.
Read full definitionBroker
A third party coordinating the sale of financial securities between sellers and buyers. Exchanges only accept orders from their members, so traders and investors use brokers as intermediaries; brokers are compensated through commissions, fees or payment from the exchange.
Read full definitionBulls
Traders who expect prices to rise and who may be holding long positions.
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