The Prop Trader's Dictionary

From drawdown rules to payout splits — every term you need to understand, master, and pass your challenge.

Y

Yield

Yield refers to the income generated by an investment over a specific period, expressed as a percentage of the investment's cost or current market value. It can apply to dividends from stocks, interest from bonds, or rental income from property. Yield is a key metric for income-focused investors and is closely monitored in fixed-income markets.

Learn more

Yield Curve

The yield curve is a graphical representation of the interest rates on bonds of the same credit quality but different maturity dates, typically plotted from short-term to long-term. A normal yield curve slopes upward, with longer maturities offering higher yields. An inverted yield curve, where short-term yields are higher than long-term yields, is widely watched as a potential indicator of a coming economic recession.

Learn more

Year Over Year

Year over year (YoY) is a method of comparing a financial metric or data point from one period to the same period in the previous year, allowing for meaningful comparisons that account for seasonal variations. It is commonly used to assess growth or decline in revenue, earnings, inflation, and other economic indicators. YoY comparisons provide a cleaner picture of performance trends than sequential month-to-month data.

Learn more
Selected glossary section

3+ terms

Explore all glossary terms currently grouped under the letter "Y".