Financial glossary
Plain-English definitions, no gatekeeping. 10 terms across personal finance, investing, crypto, markets, forex and security — growing every week.
APR vs APY
APR is the simple yearly rate; APY includes the effect of compounding.
Personal FinanceCompound interest
Interest earned on both your original money and the interest it has already earned.
InvestingDollar-cost averaging
Investing a fixed amount on a regular schedule, regardless of price.
InvestingETF (Exchange-Traded Fund)
A basket of assets that trades on an exchange like a single stock.
InvestingIndex fund
A fund that holds every stock in a market index instead of trying to beat it.
MarketsLiquidity
How quickly an asset can be bought or sold without moving its price.
ForexPip
The smallest standard price move in a currency pair — usually the fourth decimal place.
InvestingPrivate credit
Loans made by non-bank lenders directly to companies, outside public bond markets.
CryptoStablecoin
A cryptocurrency designed to hold a steady value, usually pegged to a currency like the US dollar.
SecurityTwo-factor authentication (2FA)
A second login step beyond your password, so a stolen password isn't enough.