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The market's mood. Risk-on = investors buy riskier assets (stocks, emerging-market currencies). Risk-off = they flee to safety (dollar, gold, US Treasuries).

The "fear index". Measures how much turbulence the market expects in the S&P 500 over the next 30 days. High = nerves; low = calm.

The index measuring the dollar's strength against a basket of currencies. When it rises, it's usually a risk-off signal.

Consumer Price Index: the most-watched US inflation print. It moves markets because it shapes what the Fed does with rates.

The policy interest rate set by the central bank (the Fed in the US, Banxico in Mexico). It anchors almost everything else — loans, bonds and the exchange rate all react to it.

A loan you make to a government or company: they pay you periodic interest (the coupon) and return your principal at maturity. It's debt, not ownership.

The annual return you actually earn on a bond at its current price. When a bond's price falls, its yield rises — they move in opposite directions.

How sensitive a bond's price is to interest-rate changes. A duration of 5 ≈ the bond loses ~5% if rates rise 1%. Longer maturity = higher duration = more risk.

The chart of government-bond rates across maturities (months to 30 years). When short rates exceed long ones the curve "inverts" — a classic recession signal.

The extra yield a company pays over the government bond of the same maturity. It measures default risk: the wider it gets, the more nervous the market is.

How many times its annual earnings a stock is worth. A high P/E = the market expects strong growth (or it's pricey); low = cheap or doubted.

The company's net profit divided by its number of shares. It's the slice of earnings attributable to each share.

A company's total stock-market value: share price × number of shares. It defines whether it's large-, mid- or small-cap.

The portion of earnings a company pays out in cash to shareholders. The dividend yield expresses it as a % of the share price.

How much a stock moves relative to the market. Beta 1 = moves in line; >1 = more volatile (amplifies ups and downs); <1 = more defensive.

The gap between the price you buy and sell a currency at. It's the dealer's "margin" on your trade.

An agreement to buy or sell currency on a future date at a price locked in today. Used to protect yourself from the exchange rate moving against you.

The right —not the obligation— to buy (call) or sell (put) an asset at a fixed price before a certain date. You pay a premium for that flexibility.

A contract to exchange cash flows between two parties — e.g. fixed rate for floating, or one currency for another. Used to hedge rate or FX risk.

The gain (or cost) of holding a position due to the interest-rate difference between two currencies. The peso usually has positive carry vs the dollar.

One hundredth of a percentage point: 100 bps = 1%. It's the standard unit for discussing rate moves and spreads without ambiguity.

A structured instrument where your return (or final payout) depends on how a currency pair moves. It blends a deposit with an FX option.

Not putting everything in one asset. By combining investments that don't rise and fall together, you cut total risk without giving up much return.

Measures how much extra return you get for each unit of risk taken. Higher = better paid for the risk. Used to compare portfolios.

The process of gauging how much risk a client can and wants to bear before recommending products. In Mexico AMIB requires it: the product must suit the profile.

The duty to put the client's interest above your own and disclose any conflict. It's the core of the ethical conduct that both CFA and AMIB test.