Glossary - A

ABSOLUTE DRAWDOWN
The difference between the initial deposit and the smallest value of balance within testing: Absolute Drawdown = Initial Deposit – Minimal Balance.
 
ABSOLUTE RETURN
The absolute return or simply return is a measure of the gain or loss on an investment portfolio expressed as a percentage of invested capital. Absolute is used to stress the distinction with the relative return measures often used by long-only funds i.e. funds that are not allowed to take part in short selling.
 
ADVANCE/DECLINE LINE
The A/D line is the cumulative total of the daily difference between the number of stocks advancing and the number declining. Divergences between the A/D line and a market index can be viewed as a market signal.
 
ALTERNATIVE INVESTMENT MARKET (AIM)
AIM is a sub-market of the London Stock Exchange, allowing smaller companies to float shares with a more flexible regulatory system than is applicable to the main market.
 
ARBITRAGE
The simultaneous buy and sell of identical or equivalent financial instruments in order to benefit from a discrepancy in their price relationship.
 
ASK
Price at which party to a trade is willing to sell.
 
AUM
Assets under management.