Financial Terms Dictionary - Letter H

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Halving

Halving in crypto refers to the event where the reward for mining new blocks is halved, meaning miners receive 50% fewer coins for verifying transactions. It occurs at predetermined intervals in a blockchain in an attempt to manage the supply of the coin.

Hang Seng index

The Hang Seng Index is a major stock market index which tracks the performance of around 50 largest companies listed on the Stock Exchange of Hong Kong.

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Hawks and doves

In economic policy, 'hawks' are those who prefer higher interest rates to keep inflation in check, while 'doves' are those who support lower interest rates to foster employment and economic growth.

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Head fake

In financial markets, a head fake occurs when a security's price moves in one direction, but then quickly pivots to move in the opposite direction, often misleading traders.

Hedge

Hedging involves taking a trading or investment position intended to offset potential losses or gains that may be incurred by a companion investment. It typically uses derivatives to mitigate the risk of adverse price movements in an asset.

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Hedge fund

A hedge fund is a limited partnership of private investors, whose money is managed by professional fund managers who engage in active investing strategies.

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Hedge Fund Manager

A hedge fund manager is an individual or company responsible for making decisions about investments in a hedge fund, including strategies for trading and risk management.

Hedging strategy

A hedging strategy includes various financial instruments or market strategies used to offset potential losses or gains. This can involve options, futures, equity, or commodity derivatives.

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Helicopter money

Helicopter money is a form of monetary stimulus strategy where money is distributed directly to the public, with the aim of boosting spending and inflation.

High street bank

A high street bank in the UK refers to a large retail bank with many branch locations, typically situated on main roads of towns and cities. These banks offer a range of financial services to the general public.

High-margin securities

High margin securities are investments that offer a higher percentage of profitability or returns over the cost involved. They often come with higher risk and volatility.

Historic Pricing

Historic pricing refers to the analysis of past price data for a particular asset or security to identify trends, patterns, or anomalies that may inform future investment decisions or valuations.

Historical returns

Historical returns are the past financial performance of an investment or asset, providing investors with data to assess average returns, volatility, and potential future performance.Learn more

Historical simulation

Historical simulation trading involves testing a trading strategy using historical data to evaluate its effectiveness and predict future performance under similar market conditions.

HODL

Originally a typo for 'hold', HODL has become a slang term within the cryptocurrency community for holding a cryptocurrency rather than selling it, often used to express a long-term approach to cryptocurrency investing.

Hoist Finance

Hoist Finance is a Swedish financial services company that specialises in acquiring and managing non-performing consumer loans across Europe, helping banks and financial institutions with debt restructuring.

Hong Kong Stock Exchange

The Hong Kong Stock Exchange is one of the major global exchanges, hosting the trading of stocks, bonds, and other securities, and is noted for its role as a gateway for international investors into China.

Hostile takeover

A hostile takeover occurs when one company attempts to acquire another without the consent or cooperation of the target company's management and board of directors, typically by going directly to the company’s shareholders or fighting to replace the management to get the acquisition approved.

House stock

A stock house, often referred to as a brokerage house, is a firm that buys and sells stocks and other securities for clients, in exchange for a fee or commission.

HSBC Holdings PLC

HSBC Holdings plc is a British multinational banking and financial services organisation headquartered in London. It is one of the world's largest banks and offers a wide range of banking services worldwide.

Human Capital

Human capital refers to the economic value of a worker's experience and skills, including factors like education, training, intelligence, skills, health, and other things employers value such as loyalty and punctuality.

Humped Yield Curve

A humped yield curve is a type of yield curve which shows interest rates initially increasing and then decreasing. The hump indicates a period where short-term interest rates are higher than both long-term and very short-term rates.

Hybrid market

A hybrid market combines elements of both electronic and traditional floor trading, allowing traders to choose between participating in the electronic trading system or trading through floor brokers.

Hybrid security

Hybrid securities are financial instruments that combine characteristics of both equity and debt securities. They often include preferred stock, convertible bonds, and other financial instruments that behave like a mixture of stocks and bonds.

Hysteresis

In economics, hysteresis refers to the phenomenon where a single disturbance in the economy can have effects that persist even after the original cause of disturbance has been removed, often used to describe unemployment or market inefficiencies.