An index is a benchmark that tracks the performance of a specific group of stocks, bonds, or other financial assets. It helps evaluate the overall health of the market or a particular sector.

Futures are financial agreements that require the buyer to purchase, and the seller to sell, an asset at an agreed-upon price on a specified future date.

Bonds are debt instruments issued by governments or companies to raise funds. The bondholder becomes a creditor to the issuer and earns income through regular interest payments.

Stocks are financial instruments that signify ownership in a company. Shareholders may receive dividends and have the right to vote on company matters.

Volatility refers to the degree of price movement in financial assets over a given period. High volatility signifies large price swings, while low volatility suggests greater price stability.

Liquidity refers to how easily an asset can be bought or sold without causing major price fluctuations. The higher the liquidity, the quicker an asset can be converted into cash.

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

A broker is a licensed intermediary who facilitates transactions for traders and investors in financial markets, earning a commission for their services.