Explore clear definitions, everyday examples and lesson contexts.
Showing 4 of 4 matching terms
The unsupported belief that earlier outcomes force a compensating next outcome, such as thinking a win must follow a losing streak.
Example: After several tails in independent fair coin tosses, the next toss is still 50% heads.
Keep in mind: Actual trading outcomes need not be independent; the coin example does not establish a trading probability model.
GDP: the value of final goods and services produced within an economy over a period under its accounting framework.
Example: A finished loaf counts as final output; separately adding every ingredient’s sale to that loaf’s value would double-count intermediate production.
Keep in mind: Nominal values use current prices; real measures adjust for price change, and estimates can be revised.
A stated price-movement result before separately specified charges. The calculation must disclose prices, size, currency and which costs are already included.
Example: An invented trade shows a 5-unit price result before a separately charged 1-unit commission.
Keep in mind: Executable entry and exit prices already reflect their quoted sides; do not subtract the spread again without checking the convention.
A claim that a stated gain is certain. In a Forex offer, a promise of sure profit deserves particular scrutiny because price outcomes are uncertain.
Example: A group promises that every deposit will grow each week, even though it cannot control future currency prices.
Keep in mind: An advertised promise is not evidence that the result or protection is genuine.