An index is a metric that represents the performance of a specific group of stocks, bonds, or other financial instruments. It is commonly used to evaluate the overall state of the market or a specific sector.

Futures are financial contracts requiring the buyer to purchase, and the seller to sell, a specific asset at a predetermined price on a specified future date.

Bonds are debt instruments issued by governments or corporations to raise capital. The bondholder acts as a creditor to the issuer and earns income through fixed interest payments.

Stocks are financial instruments that signify ownership in a company. Shareholders may earn dividends and have the opportunity to participate in the company’s management decisions.

Volatility refers to the degree of price fluctuations in financial instruments over a specific timeframe. High volatility signifies large price movements, whereas low volatility indicates more stable prices.

Liquidity refers to an asset’s ability to be quickly bought or sold without causing significant price changes. Higher liquidity means the asset can be converted into cash more easily and efficiently.

Dividends are a share of a company’s profits distributed to its shareholders, typically on a regular basis, and paid either in cash or additional shares.

A broker is a professional intermediary that facilitates transactions for traders and investors on financial markets in exchange for a commission.