A | |
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Absolute Rate |
A permanent part of an interest rate swap, represented as a profit share in preference as a premium or a discount to a reference rate. It is a swap between counterparties with their set to floating rates to minimize the risk of currency variations. It is a consolidation of the reference rate and the premium or discounted fixed percentage. For instance, if the London interbank offered rate is 4% and the set interest allowance of the swap is at an 8% premium. The absolute rate is 12%. An absolute rate is also occasionally taken as a full exchange income. This rate is commonly induced reaching the present worth of the fixed part of the interest rate swap. |
Accurate Forex Signals |
Forex signals are foresights of currency shifting percentage in the future events at Forex market. Forecasts can be created for intraday, daily, weekly and long term periods. Using economic and technical analysis traders can create their own forecasts. However, it requires large experience and is time consuming. The best solution is to use Forex trading software like Forex trading strategy ProFx. It does all the work for you and delivers accurate Forex signals. |
Adjustable Pegged Exchange Rate |
An adjustable pegged exchange rate is a term which is used to describe a method of stabilizing the rates at which the currency of one country may be swapped for that of another, prices, etc., by preserving a "pegged" level for an exact period. It is a flexible system of fixing the rate of exchange. This pegged exchange rate allows dynamic changing from time to time with some periods a course at its artificial support. Such adjustable pegged exchange rate is supported on a certain fixed currency level with respect to another one. Sometimes it is allowed that this rate can have some insignificant deviations from the "pegged" (fixed) level. |
Alan Greenspan |
Allan Greenspan is American economist and the former chairman of the Board of Governors of the Federal Reserve System of the United States of America. His post lasted about 18 years after that he was replaced by Ben Bernanke. Alan Greenspan was assigned to his post by then president R. Reagan and has become the first person to have been assigned as a chairman for such a long period of time. He"s known for being an expert at tackling the policy problems and his experience helped to direct the financial markets. Sometimes he was denounced for taking too much control on prices instead of obtaining full employment. Now Alan Greenspan works as a financial private advisor and supplies different firms and business organizations through his own company with finance counseling. |
American Currency Quotation |
In Forex trading, it is a straight quotation through which the financial worth of a foreign currency in terms of the American dollar is measured. This currency quotation demonstrates what the amount of U. S. currency it contents to acquire one unit of foreign currency. |
At Market |
“At Market†term is being used to define a certain order set by client in an investing purpose for buying and selling capital issues by the real market price. |
Aussie |
A term which is mainly used in slang language to correspond with the ordinary and formal term traditionally named Australian dollar. |
Authorized Forex Dealer |
In Forex trading authorized Forex dealers is a certain type of financial establishment that has an authorization that they have got from the defined agencies to represent the trading in foreign currencies. Managing with authorized Forex dealers guarantee that all of trading business will be accomplished legally and fair. One of the agencies in the United States which is having a proven capacity for authorizing Forex dealers is the NFA (National Futures Association). This Association controls the registration and regulates all the trading in Forex business by approving documentation. Each country has its own regulatory agencies to ensure that all the authorized Forex dealers work upright and on the correct level to provide the clients with fair trading. |
Automated Currency Trading |
A certain scheme of trading currencies with the help of the computer program that is founded on some data sets and analysis to improve making a decision about selling or buying in currency transactions. Automated currency trading have become more and more popular in the last years. As the foreign exchange market is a 24 hour market without open and closing time automated currency trading systems have many advantages. High end auto Forex trading systems as offered from us can even recognize changes in the market conditions and adapt themselves whenever required. |
Automatic Forex Trading Software |
Certain software which is created for automation usage in Forex trading to identify the potentially money-making cooperation commerce and to simplify difficult computations for the purpose of anticipation the next move in currency trading. This automatic Forex trading software examines the tone of the market and after that makes automated trades based on their individual program that has been coded during first sessions in currency trading of the Forex market. Furthermore, this automatic Forex trading software keeps the investor in the picture of all events that might happen during the whole working week on the strength of around-the-clock work without wasting any precious minute for the trader. Besides, this software helps to operate with all securities and valuable assets. Learn more about fully automated Forex trading software and compare Forex trading systems offered from Forex21. |
Automatic Trading |
In Forex markets automatic trading means that a trader uses certain computer programs to make better decisions in currency trading by some sort of algorithm, which is directed to study the market tone, including all implements that are needed to make a solution without any human intrusion. Automatic trading may be used in any financial vested interests to have an opportunity of managing the strategy of trading in a completely automated way. One of the main reasons of so popular automatic trading is that now in the 21st century the extra income is probably one of the most needed things for everybody in the world, who wants to make a go of his/her own business but still has some difficulties in that on the score of not too much time in knowing the Forex trading in all its minutest details. Automatic trading systems make it easier for traders to achieve stable forex performance. |
B | |
Backtesting Forex Strategies |
A procedure in researching the trading strategies which were taken place some years ago in the past with the aim of doing a simple simulation of its strategy with the intention of measuring its efficiency. The outcome of such strategies depends very much on the process which had happened in the tested period. The followers of this back testing strategy admit that it is, as likely as not, that events of the past will occur in the future. That is why it has some risk and to prevent this, it is very important to find such a back testing forex strategy that will work with real data as well as with historical data. Most of the strategies for the analysis are tested with this method. All profitable forex systems offered from us are tested with historical data from at least 10 years using the Metatrader Forex trading platform. |
Bank of International Settlements |
Bank of international settlements (BIS) is a worldwide operating institution that is nurturing the interaction with central banks and other organizations, which are dealing with monetary policy, and also provides other bank procedures: taking deposits, makes loans, and helps in remunerating uncertain steps of funds between the leading currencies. BIS was accomplished in 1930 by the Hague agreements. |
Base Currency |
Base currency is the term which is using to denote the first currency that is mentioned in the currency pair. The second one calls the quote currency. Furthermore, the base currency marks the domestic currency or the leading currency. In enumerating advantages, in currency market, a company that makes use of currencies counts all the earnings and drains exactly in base currency. The base currency appoints the worth of 1 when counting the rate. It is also very often concerned as the “primary currencyâ€. Most important base currencies which are interesting for currency trader are the Japanese Yen, the EUR and the USD. For example, taking the currency pair EUR/USD, Euro dominates and is a base currency. Consequently, the value will show us how much of the quote currency is required to get one item of base currency. |
Bear Market |
A tedious period of time while all the prices on investments, capital issues and commodities are falling in leaps and bounds by more than twenty percent and all of it is conducted by broad in content pessimism. At such periods the interest in investing becomes very low, worry and disturbance about economic conditions grows and the majority of investors, dealers and speculators try to get rid of their investment documents more than taking a high risk keeping them. Bear markets usually arise when the economy incurs losses and the number of unemployed is extremely on the increase. Furthermore, it begins when there is a high risk of inflation. The term “bear†has been used in financial vocabulary since the 18th century. The origin source of its usage is still not clearly known. The opposite term of it is the bull market. |
Bear Market History |
Thoroughly collected statistics of all economic events, which were taken during a noted period of time when a bear market took place. This statistic prepared in a special arrangement tabular or some other comfortable way for guaranteeing showing all the episodes of recession in economic together with the bear markets. There are a great number of varieties in formatting such accurate statistics comparing different years, countries and events. The main thing in bear market history is that with the help of comparing good and bad statistics experts are trying to prognosticate the future market fluctuations and propping up the bases of such prognoses to earn as much profit as it is possible. |
Ben Bernanke |
Ben Bernanke is an American economist and the 14th and current chairman of the board of governors of the U. S. Federal Reserve. He chaired this post after Alan Greenspan"s 18-year governing in 2006. Furthermore, Bernanke was an advisor of the President in economic questions in the U. S. Council of Economic Advisors. See also: Alan Greenspan. Besides, serves as Chairman of the Federal Open Market Committee. |
Big Figure |
The term is used in Forex trading to round the sum of currency to the decimal point. It is often referring to foreign currency and financial markets. It means that the price of shares would be denoted in terms of an entire dollar in place of putting decimal values. For example, trading at 157.987 would have a big figure of 157. Very often this term means “handleâ€. |
Blocked Currency |
It is a certain type of currency, which cannot be effortlessly exchangeable for another currency on the Forex trading or that may be only to exchange in restricted access. It also called as a “nonconvertible currency†or “inconvertible currencyâ€. Such currencies are created by the government that wants to control trading and exchange without any foreign participation. Sometimes it prevents the country from inflation. It is known that trading with blocked currency is very often traded on the so-called “black marketâ€. Besides it is very hard or even impossible to convert blocked currency into freely one. |
Bretton Woods Agreement |
An agreement which was made and signed in 1944 in Bretton Woods, New Hampshire and described instructions and management for an international monetary arrangement. Due to this agreement was set up a permanent rate which was connected with other countries to exchange the U. S. dollar for gold as major currency. Besides, The International Monetary Fund was also created at that time. This Bretton Woods agreement subsisted until 1970s on the strength of the rejection from exchanging the U. S. dollar for gold. After that the new floating exchange rate was assumed. |
Bull and Bear Market |
Two absolutely opposite states of market when prices of shares, stocks or securities wobble from very low to very high. It depends on the all-round situations in the economy station, considering inflation and the condition of unemployment. It is believed that there is a possibility to earn money on the conditions of bull and bear markets on trading and of course investments. The fundamental viewpoint is in buying in low prices and certainly selling in high. Such strategy supposes to give gains. So to earn some money it is needed to buy shares or currencies in a bear market and to sell them in a bull market. |
Bull Market |
Quite a long period when all the prices on the investment documents are rising really fast, and it helps to boost the profits. Most of the time it happens owing to the fact that the economic climate begins to rise in a positive way and makes an investing business indifferently well. The bull market is represented by optimism, positive expectations and high investors" assurance that such a progressive result will last long enough to make a descent amount of money. The definition of the bull market is originated from the animal"s behavior during its repelling the attacks of enemies. It cleaves the air by its huge all-conquering horns. |
C | |
Cable |
Cable, also known as is a term used in slang language among Forex traders to indicate the swap rate between British Pound Sterling and U. S. dollar. A wide usage of this term takes its origins from 1880s because of transatlantic cable, which was used to transfer the exchange rate of the major currency between Britain and the USA. Furthermore, cable is used as a slang term in the forex market for the name of British Pound Sterling. |
Camarilla |
A term takes its origins from the 19th century and means a group of powerful advisers of the king who, in fact, ruled the country and had their conferences in a small room on the threshold of the big king"s premises. Such tactics were first used in 1989 in day-trading by a legendary trader Nick Scott. Inherently, of this strategy lies a simple definition of the price range in the market – namely the conclusion that time-series have a practice in returning to average. Camarilla is a special indicator which was created specifically for the improvement of Forex in day-trading. It uses complex mathematical patterns to highlight the levels with the using of yesterday prices of the opening, closing, maximum and minimum. In defiance of widespread opinion, the Camarilla levels are available for many traders. |
Candlestick Chart |
A version of a strip diagram that is used to display, record and analyze prices of the currency, shares, commodities or securities on the chart. The candlestick symbol figures a rectangle with short wicks from each end who are usually called shadows. These wicks represent low and high prices for each trading period. The “candles†are shaded when the price decreases and left white when the price increases. For shaded candles the top of the candle shows the opening price and the bottom of the candle represents the closing price. And of course the meanings are opposite to white candles. Candlestick chart is important for analysis of the forex market. It depicts the prices of the merchant diapason and also the opening and closing prices. A lot of forex trading strategies are making based on such a candlestick chart. |
Central Banks |
Central banks are the banking financial institutions that have the right to lend a government its currency. They control the monetary policy of the country, regulate the volume, supply and cost of money and credit, provide the country"s economy with funds, issue currency, control the inflation by price stability, and supervise the exchange rate. Central banks are the banking financial institutions that have the right to lend a government its currency. They control the monetary policy of the country, regulate the volume, supply and cost of money and credit, provide the country"s economy with funds, issue currency, control the inflation by price stability, and supervise the exchange rate. |
Cross Currency |
In foreign exchange this term represents a pair of currency in trading that swaps without converting it into United States dollar. A cross rate denotes to the currency pair that removes the U. S. dollar. Historically, it began in the end of World War II when most currencies were pegged to the dollar because the USA was the only influential and major country that came out of the war without serious financial damage. This signified that the assurance in the U. S. dollar was sturdy and everyone who wanted to exchange some amount of money into another currency, firstly, was required to convert it into dollars and only after that into anticipated currency. And cross currency support the investors and traders to avoid this step. |
Currency |
It is a certain form of money as coins, treasury notes, and banknotes, which are used by authorities of the government and revolved inside an economy and is found in public circulation. Currency is used as an instrument of exchange for goods and services and shows the foundation of commerce. Every country has its own currency, except for Euro, which is applied to the certain European countries. Traders frequently deal in a currency on the Forex, which is one of the most intensively traded markets in the world. |
Currency Carry Trade |
A certain tactic in which the trader lends and pays currency in a low interest rate with the intention of using those funds to buy a different currency purposely to collect revenue from a higher interest rate. The major risk in such Currency carried trade is that the exchange rate is rather uncertain and very often moves in a hostile direction, crushing the profit from the interest rate difference and sometimes a short motion in exchange rates can cause big or even huge damages, unless it is secured appropriately. |
Currency Day Trading |
Currency day trading is a certain trading strategy which is directed on buying or selling currency within one and the same calendar day. This means that all the trades are done on the same day, and nothing is held unexpectedly. Usually, this tactic is mostly widely-spread in Forex market. Mainly only large banks, financial establishments and millionaires participate in such day trading because such strategy demands traders to be well educated, well funded and having enough experience in this type of trading. However, with a good and solid Forex day trading strategy like ProFx practically everyone can start day trading because ProFx provides you with exact entry and exit signals. A big advantage of currency day trading that the results of the trading are instant and known by the end of the through-passing trading day. |
Currency Day Trading System |
It is a certain system which is used by a trader with accurate analysis in Forex with a tendency to define whether to sell or buy a currency pair at the trading period. This currency day trading system is made up as a rule of several results of the number of signals that came from preceding currency day trading and lies in the basis of the events on that day trading. Mostly, they are either automated or manual. |
Currency Exchange Trading |
It is a term which is used in financial markets with the act or an instance of buying and selling currency with the aim of receiving some profits from the exchange rate between two currencies when the trader is trying to predict how much one currency is worth in terms of the other and what fluctuations may appear on the market. In the basis of these predictions, the trader leads the currency exchange trading and decides what currency he would exchange and trade. While currency exchange trading may look difficult for traders who did not invest in the foreign exchange market before, automated forex system trading, make it possible to participate and make stable profits. |
Currency Market |
Certain types of market where the participants have a right to exchange, buy, sell or speculate on currencies and earn profits from those fluctuations and turnovers. A currency market is made up of commercial companies, investment firms, banks, hedge funds, banks and retail foreign exchange trader and brokers. It is supposed to be the biggest financial market in the world where trillions of dollars value of everyday transactions. Using automated Forex system trading individuals can participate successful on the currency market. It is a global worldwide system of buying and selling capabilities of earning profits on the exchange rates. |
Currency Trader |
An individual person, company, firm or a bank that takes part in Forex trading and makes investments, buys or sells the currency in the Forex market with the aim to earn money and receive yields from the transactions with foreign currency. While some currency trader uses discretionary systems, the majority of successful currency traders use forex systems with automated or semi-automated trade execution. |
Currency Trading Account |
If there is a need or a will to start in Forex trading, there is a necessity to have a currency trading account. Such account is most of the time is in command of a forex broker. Having this account is very much alike with having your own bank account. There are different types of currency trading accounts that depend on the amount of its size. Micro accounts for new traders who want to start with small investments, mini accounts for medium account sizes and standard accounts for larger sums. It is required to be discreet for probable scams from some traders, brokerages and trading companies and use only solid sources. |
Currency Trading Broker |
Companies that provide the traders with an access to sell and buy foreign currencies with the help of middlemen also known as retail Forex brokers or Forex brokers. Currency trading broker manages the traders" accounts handles a very small part of the size of the pervasive foreign exchange market. These brokers are been used by currency traders to have an access to the round-the-clock currency market. It is important to do some research to come to know about the image, reputation and functional capabilities of a currency trading broker that a trader is looking for. Moreover, it is very useful and wise to test their forex trading platforms until accepting the choice of what currency trading broker to apply. |
Currency Trading Platform |
It is a type of certain trading software which is directly used to facilitate the currency analysis for traders. Currency trading platforms are supplied with chart and order-taking methods and may be used not only in currency trading but also in transactions with the capital issues that have difference in cost. There are a lot of such currency trading platforms in the market but it is very important to try out each of its software during the trial periods just to be sure what platform the best variant in Forex trading for the currency trader is. One of the best trading platforms is Metatrader 4 and Metatrader 5 as they allow trading with all forex systems. |
Currency Trading Software |
It is trading software that is specially designed to help the currency traders with the technical analysis in foreign exchange. It is provided with everything necessary outfit, which is most of the time free of charge together with opening the trading account with a currency trading broker. It is very different in functionality because of using not only with currencies but also with securities. The choice of the best currency trading software differs due to the personal virtue of traders. It is highly recommended to compare Forex trading software to make sure the system fit your needs. |
Currency Trading Strategies |
Some certain group of methods and tactics that are used by traders, investors and other Forex users to have a possibility for a better prediction in trading of the forex market how and where the prices may behave during the currency trading. The more research has done the better currency trading strategy can occur in the end of all the analysis, monitoring and tendencies during the events of trading in the forex market. According to those strategies, a trader decides whether to buy or sell currencies with the aim of the biggest profit. |
Currency Trading Systems |
Methods of trading Forex that lies in the foundation of a series of supervising and certain signals received from technical analysis, charts or news-based events that help the currency traders in providing better transactions in making the last decision about buying or selling that lead to lift the yields. Currency trading systems may be automatically or manual. Manual systems depend on the trader who provides all the analysis by himself with the scrupulous observation of the events on the forex market. And the automated Forex systems dealing with the trading software which is learning from the trader and afterwards make all the decisions from the receiving signals about trading events. Forex21 offers best trading systems for fx traders. |
D | |
Daily Forex Chart |
It is a certain forex chart which represents daily fluctuations of the given capital issues. It confronts to longer charts in terms that show the fluctuations during days, months and even years. Daily Forex charts show all the price changes for the certain period and mostly used by day traders to accomplish short-term tactics. As Forex trades round it is obviously that trading between one trading day, and another is not stopping as it is on the other markets. That is why there is an agreement to regard a Forex day to be from 5 pm EST to the identical time in the next day and as a result mainly daily Forex charts are shown in this direction. |
Day Trading Forex |
A practice in investing when one buys or sells capital issues and afterwards sells or buys these same issues in the same trading day. This day includes the opening price and the closing price on the same trading day with the intention of bringing in an income from short-term alterations in price variations. The showings in such day trading Forex traders took part in are on a very substantial risk as a result of the absence of the guarantee that the price may or will vary in the hoped-for direction. Nevertheless, fx day traders supply the market with much of liquidity. To be successful with day trading Forex it is important to have a solid forex day trading strategy or Forex EA. |
Dollar Drain |
A certain event when a country imports more products and goods from the other country than it exports in return. The final effect of paying out more money with an import than with an export causes a net reduction in the bringing in the country"s resource of the transportation of country"s currency. A dollar drain state should not be supported vaguely. Because of the rules of provision and demand, bringing in more than transporting will probably cause a loss of value of the importing country"s currency. However, this net effect will be lessened if the abroad investors merge their money into the bringing in country"s securities, as these operations will scale up the necessity for the importing country"s currency, leading it to increase the price. |
Dual Currency Deposit |
It is a set deposit with changeable periods for the currency of charge. Money in the bank is making in one currency, but immobilizations at readiness appear both in the currency of the initial savings and in another provided against the currency. It is such a deposit that produces an exchange rate for the traders and investors. Very much alike to a currency exchange you can receive either a reward or a penalty for the risk taken. |
E | |
Easy Forex Strategy |
These are easy forex strategies that help to teach how to trade the market with a result of making extra income with the help of received profits. Easy Forex strategy helps the beginners to start learning the basics of the forex market. This strategy advises what indicators you should use, what behavior would be expected after making the decision. It is very important to learn the basic elements of the strategy, and afterwards it is needed a reinforcement on the practice. Using easy forex strategy helps to organize the knowledge received about Forex trading, and a good and easy Forex strategy is a strategy that should work for the new trader in a medium period of time. These Forex strategies and techniques are devoted to help the traders in their attempts and research and developing of appropriate trading tactics and systems. |
Easy Forex System |
It is a certain type of system, which is devoted to boost the yield in a very short period of time, even if a person has never traded currency before. There are a lot of programs with such systems that are designed and specially created for easy Forex trading, and they are dedicated to make the Forex trading easier for the new traders who want to develop their bank accounts. Easy forex systems can be manual or automated. It could be done by some organization or even by a simple individual trader. It means that everyone can learn how to trade Forex and afterwards create his/her own easy Forex systems. |
ECN Forex Broker |
ECN is an abbreviation which stands for Electronic Communications Network that alludes to an electronic channel to market and means a network of traders that are connected with their brokers. ESN Forex broker is the broker that is not provided with a dealing desk. Instead of that he supplies a marketplace by increasing the market makers, traders, financial institutions and banks and entering in rival bids and offers into the platform inside or outside of the market"s diffusion. With the help of ECN Forex broker, the traders will achieve better offer than using a market maker broker. |
Economic Exposure |
This term means an economic vulnerability and liability to the economic risk and exposure to variation of exchange rates, which influences upon income, the movement of money into and out of a business and foreign investments. A scope by which the company is influenced by economic exposure is a function of the specific features of the company and its trade. Mostly, the big amount of companies tries to belittle the risk of variations of the exchange rates by insuring the positions in the foreign markets. Companies that do many tasks in business throughout the world always have a special risk for economic exposure. Economic exposure can be measured with economic indicators. |
Economic Indicators |
Economic Indicators are the specified historical data and fundamental analysis about an economy. These Indicators permit to predict some changes in the future of an economic state. Those Indicators may impact on the currency market in a very significant way that is why it is so important for the investors to know how to interpret all the analysis that is received from these economic Indicators. These Indicators include a huge amount of statistics, economic reports and summaries. The big value is to know and learn how to read the statistics of the Indicators about the economic state and where to find them for improving the economy itself and your income, particularly. |
Electronic Currency Trading |
It is a method of a currency trading in which an online brokerage account is involved. Electronic currency trading entails converting currency from the base to a foreign at the exchange rates through the online trading account. With the help of trading indicators electronic currency traders try to predict the behavior of the fluctuations of the currency pair that is being traded. This method is fully electronic that allows traders to take profits and cut the losses on a very high speed of accomplishment at this point. Most profitable is the usage from automated trading software. |
European Currency Quotation |
A roundabout rate in the Forex markets because of which the value of a foreign currency is fixed as a per-unit quantity of the United States dollar. European currency quotation displays how much European currency it takes to buy one U. S. dollar. |
European Monetary Union (EMU) |
A primary purpose of the European Monetary Union is to create an integrated European currency that was named Euro, which officially took place of the currency of the all member-countries of the European Union in 2002. In January 1999 began the first phase of the input Euro. Now Euro is using as a qualified standard of deferred payments and pass the circulation in EU countries. The primary intent of the European Monetary Union foundation was a making of the common market for more than 370 millions of Europeans who secures the humans" freedom of movement, goods, services and a capital. EMU brought an easing of mutual settlement of accounts between country members, stabilization of the exchange rate and also an appearing of the single, firm and uncalculating European currency, which could compete with the U. S. dollar on equal terms on the world markets. |
Exchange Rate |
An exchange rate means a certain price at which one currency can be exchanged for another. It is a value of the country"s currency that can be converted into foreign country"s currency. Most of the time in financial instrument currency is stated in terms of U. S. dollars. |
Exotic Currencies |
It is a term which is used to identify the currencies that are illiquid and have bounded time duration in market trading. Exotic currencies are not that large for active trading. That"s why these currency pairs are often traded by speculators and they are not taking into consideration in Forex trading and a standard brokerage account. Sometimes, speculators buying an immense amount of exotic currency with the hope of in the future it will have some value. Major currencies are U. S. dollar, Euro, Swiss franc, etc. and the examples of exotic currency are Indonesian Rupiah, Taiwanese Dollar, Uruguay peso etc. |
Expert Advisor |
It is an automatically Forex program which helps to trade and control the trades. These advisors are running on the computers and based on fixed or flexible trade logic that help traders and investors to resolve and decide whether to sell or buy a certain foreign currency. Expert advisor is based on the strategies, tactics, and analysis and signals that it receives during the operations. It allows to trade automatically without human"s participation or helps to make decisions about preferable exchange rate. These advisors were created with the aim of drawing out the psychological factor of making decisions in trading Forex what makes the trading not so risky. |
F | |
Fibonacci |
It is a system which can predict rationally the trading area of markets. It is based on ratios that are derived from the Fibonacci sequence and used by traders to improve their strategies in the floating foreign exchange market. It calculates the Fibonacci foreign exchange rating for every movement in prices on the chart. According to the observations of the fluctuations in Forex charts, the profits may rise greatly because of the proximity of Fibonacci ratios to the indicators of changing prices. The strategies that are based on Fibonacci ratios help to predict and calculate the key turning points in the Forex trading for better analysis in Forex market and simplification of making an income. A lot of traders make profits from the system based on Fibonacci. |
Fibonacci Calculator |
It is a tool that is specially developed and helps to calculate the Fibonacci retracement and projection levels for the Forex market price. It makes available to predict market price movements and plan future commerce due to the calculated results. Fibonacci calculator is an organizer of the currency trading experience and allows keeping the track of events in the market for twenty four hours a day. After typing in Fibonacci calculator currency lows and highs it will produce the basic Fibonacci levels. |
Fibonacci Formula |
It is a special formula that is used to calculate Fibonacci retracement and extension levels and indicates the analysis of market conditions with the aim of realizing profits in Forex trading by predicting the fluctuations of currencies. While you can calculate Fibonacci retracement levels manually, we recommend to use the Fibonacci retracement calculator on our website to save time. |
Fibonacci Retracement |
It is a term that is used to analyze and identify the strategic transaction according to which traders may contemplate prices and decrease or stop losses. Fibonacci retracement is a popular implement that is used by traders or investors and based on the key numbers established by Italian mathematician Leonardo Fibonacci in the thirteenth century. It is created for indicators in Forex for increasing profits from strategies to predict the fluctuations of currency. |
Flat Market |
It is a type of market where the prices for the securities mostly stabilized and showing no visible movements in either positive or negative direction. Most of the time it is constant for a certain period of time. A forex chart that shows a price activity of a flat market shows a horizontal line in the result of no price floating. |
Floating Exchange Rate |
It is an exchange rate regime of the country that allows prices to change in an unrestricted way. This means that central banks don"t fix the currency"s price, and it may fluctuate with a relationship to another currency. The currency value is resolved by trading in Forex. Floating exchange rate has an advantage in the economic state but also it may expose itself to currency appraisements and depreciations which are depended on the fluctuations of market. This rate is also called a flexible exchange rate and it is determined by a market. |
Foreign Currency Effects |
It is the scope to which the fluctuations of a foreign currency influence the gain of a foreign investment. The profits or wastages on such investments according to changes in the comparative value assets are designated in a currency in a different way to the cardinal currency with which investors usually do business. The investments are tangled because of currency variation and alteration between the countries. A high class investment in another country may be contemptible on account of unsubstantial currency. Sometimes it may even lead to bankruptcy. |
Foreign Exchange Dealer |
It is a person or a company that buys foreign currency and exchanges it with the aim of selling and receiving the profit due to the difference between the buying and selling prices. The foreign exchange dealer deals with the commerce of foreign currencies. Some financial institution can state in the position of a foreign exchange dealer that has a power to regulate the difference and ensure that all Forex trading is within the bounds of fairness and justice. |
Foreign Exchange Investment |
It is an enormous system of investing money in a foreign currency for the purpose of receiving some gain from the exchange rate. Due to a foreign exchange investment, it is a possibility to increase the income by trading currency with Forex. It occurs by tracking, observing and making analysis about Forex market and its currency pairs, and afterwards making decisions that have an influence on this investment, which has a result in receiving profits. It is a decentralized method of making investments because of the absence of a third party between the answerable market-maker and the trader. |
Foreign Exchange Risk |
It is a decentralized method of making investments because of the absence of a third party between the answerable market-maker and the trader. Foreign exchange risk that the prices will have to be closed out specified by an adverse in oscillations of exchange rates. It is also called as “currency risk†or “exchange-rate riskâ€. This foreign exchange risk in the ordinary course of events influences business of export and import. Besides, it can affect investors who have made some international investments. The example of such foreign exchange risk may be in an investment with the currency exchange rate during converting money to another currency when its value is decreasing or increasing as if it needs to be converted back into the original currency. To lower the risk it solid forex money management is a “mustâ€. |
Foreign Exchange Trader |
A foreign exchange trader is a person or a company that trades in Forex market using the strategies, indicators and multitude analysis of states of fluctuations in currency values, afterwards making decisions about selling or buying currencies securities or investments. Foreign exchange traders are brokers, banks, central banks, financial institutions and private persons that make profits by participating in Forex trading according to the fluctuations of the market and exchange rates. Successful foreign exchange trader using rule based forex systems. It is very important for foreign exchange traders to have a certain experience in trading for minimization the risk that occurs during the trading in Forex market. It helps to forecast the events and receive maximum from the foreign exchange. |
Foreign Exchange Trading Strategy |
Foreign exchange trading strategy is a collection of methods and tactics which are devoted for the improvement and amelioration about currency trading. By using these strategies a Forex trader or an investor designates whether to sell or buy currency pairs at a particular time of a day according to all the events that took places during the trading. Foreign exchange trading methods are based on events, forex technical analysis, indicators, tools accepted signals and specially developed programs which pull the trigger about buy and sell decisions. Such strategies vary from free, paying or made up by traders themselves and are manual or automated. A manual system of foreign exchange strategies is more time wasting and needs a lot of attention from the trader. Automated system is much easier to use and excludes the human factor that influences on the result of a currency trading. |
Foreign Official Dollar Reserves (FRODOR) |
It is a term which was made by an economist E. Yardeni connecting ecumenical liquidity of offshore central banks on US monetary policy. Foreign Official Dollar Reserves is sized as the amount of US agency securities and US Treasury kept by abroad banks. FRODOR is a very cyclical indicator in the economy. As the FRODOR increases, the values of securities grow as well, while the United States dollar deteriorates. And the contrary is watched when the Foreign Official Dollar Reserves decreases. |
Forex Analysis |
It is an analysis of the Forex market which is guided by technical and fundamental analysis. These are methods of reckoning up the securities and currency in a way to find out better steps for trading. Forex Analysis is directed at increasing the profits by using those types of analysis and considering the events that occur during the trading. Such types of analysis help traders to concentrate on the position of the market and produce the value that will be the most suitable on Forex trading. Types of analysis:
Forex Analysis use different tools and charts that help to identify the exemplars and suggest or predict the future activity. |
Forex Arbitrage |
It is a strategy in Forex trading, where the traders try to raise their profits by utilizing the inability in currency pairs. This strategy entails a quick reaction due to chances and most of the time it is complete with a computer using. Even so, still this inability is rather individual for every trader and depends on the reactions, so the chances of increasing the income are very confined and are in use for not a long period of time. So Forex arbitrage of currency requires the presence of the traders in a real-time trading and demands from them to react quickly on all the changes and opportunities that may occur. For calculating the Forex arbitrage traders use special calculators who help to find the occurred opportunities, but they need to be tested. It helps the traders to find and purchase the most suitable calculator in Forex arbitrage. |
Forex Backtesting |
It is a trade strategy which is directed on the analysis of the historical data of the events that occurred during the period of trading. This strategy is based on the opinion of many traders, that a lot of those what took place in Forex trading has a repetitive nature and there is a chance that some of those events may appear again. For this reason, some of the traders and investors use Forex back testing to analyze all the fluctuations of the market. And assuming these changes during a certain period of time, they can predict the future transformation that might happen in Forex market. Before using a new currency trading system it is important to back test the system to see, which results you can expect. Test should be done with data from at least seven years or more. |
Forex Basics |
It is a collection of concepts, definitions and terms, which are used in Forex trading and directed to help the beginners in foreign exchange for the right start that will help them to understand the system of Forex what it is, how it works and its appliances. In addition, forex basics consist of some lessons, articles and instructions that refer to the better understanding the main trading system of the world. |
Forex Bot |
The trading software developed for the automated trading by using the applied programs that refer to the signals, analysis, strategies and all the predictions about future fluctuations of the market. The human factor is ousted from the conclusions and decisions which raise the opportunity of better trading during the period of using the Forex bot. Besides, it has the access to the trading for twenty four hours a day which is also eliminating the wasting of time in front of the computer. It helps the traders to devote their time not only to the business but also to some other stuff. |
Forex Broker |
Forex Broker is a negotiator between the seller and buyer. It may be some large financial institutions or an individual that earns money by placing a margin for securities, currency and some other products between ask and bid prices. As it is required the Forex Broker must have a license for carrying out such business in trading. |
Forex Charts |
Forex Charts are the charts that are used in researching the condition of a market by analyzing the currency pairs together with various indicators. This graphical method allows traders to study the situation of the Forex market, countries" economy and produce the results on the base of all these arguments. These Forex Charts are used to organize the strategy of better trading in currency pairs. Nevertheless, the software is designed using the Forex Charts to facilitate the research in making analysis of any given from the market currency pair. |
Forex EA |
It is a specially designed automated program that eludes the psychological factor of human"s invasion. It is directed to control the fluctuations of the Forex market and helps to trade better than using manual systems of researches. Forex EA means an expert advisor which may resolve and decide what currency from the currency pair should have to be bought and what the fluctuations may influence on the rate of exchange. That in turn helps to decide about buying or selling a foreign currency. It is based on the tactics, strategies, signals and analysis that are coming during the trading. It trades automatically and may decide better for a live person about an exchange rate. |
Forex Exchange Trading Systems |
It is specially organized software, which is developed for the better trading in Forex. Forex exchange trading systems enable to analyze the events on Forex market and help the traders to choose the right positions and as a result lift the profits. These systems are divided on manual and automated. Manual Forex exchange trading systems are used by traders who have time for wasting it by the computer in tracking the Forex signals and making the decisions concerning all the propositions about the market. And automated systems are made for those traders who value their time and money. They teach the program to respond for the right signals and make the decisions without human"s invasion, which make it more psychologically independent. |
Forex Expert Advisors |
It is an automated program that is designed for controlling the events of the Forex market and making the decisions based on the received signals. It includes researching strategies, analysis and tactics of trading and its optimization in the most proper way. Forex expert advisors trade without any human"s participation that eliminates the psychological factor of its decisions and decides more clearly about whether to buy or sell the currency from the desired pair. These advisors trade automatically, which helps to cut out the time wasting on long analysis and weighting all the pros and cons. |
Forex Market |
It is a foreign exchange market in which currency is converted into another, making possible international transactions to participate without any physical transportation of gold. Forex market is the largest market that consists of banks, central banks, hedge funds, commercial companies, retail forex brokers, investment management firms and investors where the participants have the power of buying, selling, exchanging and speculating on currencies of different countries. It processes trillions of dollars value of transactions every day, and it includes the world"s currency. The Forex market is opened round-the-clock five days a week. |
Forex Market Hours |
Forex Market Hours are the hours during which the process of trading is going on. During these hours, all the participants of the trading may decide about buying, selling and other forms of trading. It is opened twenty four hours a day, five days a week. But for good trading, it is very important to start the trading when the Forex market is the most active. And its activity depends on the time zone of the countries that take part in trading. Forex Trading Hours are exactly that hours of trading that occurs on a specified period of time when it is opened in one of the trading countries. The most active time of trading is the period when the markets of the countries overlap. These are the most suitable h for the best trading. |
Forex Software |
Forex software is a term which is used to show all the platforms for the Forex according to the cultivated programs. This software installs on the traders" computers and helps them in improving the trading in Forex. It is the collection of all programs that are needed in Forex trading for developing more effective and useful actions during all the period of foreign exchange. Forex software refers to the most called-for software because of the everyday growth and popularity of the specially created platforms for easier Forex trading. |
Forex System Trading |
It is a system that is created for automated currency trading and directed to remove the emotion and guesswork from the Forex trading as a human"s factor of participation is excluded. Because the Forex System Trading is automated it helps to capture opportunities in making profits 24 hours a day without contribution to it all the time you"ve got. In addition, it is provided with the aim of helping the investors in the process of trading in the right way. |
Forex Trading Robots |
Forex trading robots are completely automated programs, and they use strategies, technical analysis and signals and trying to predict the variations of a market in the future. It makes the Forex for you. Besides it eludes the psychological factor from making the decisions which mean that emotions are not participated in trading. So that is one of the main arguments to the side of Forex trading robots. Nevertheless, it may trade 24 hours a day that provides the in-service trading during all the best period of trading throughout the world. Forex trading robots make the Forex trading for you not so time-consuming. |
Forex Trend Lines |
Trend lines are made for forex technical analysis, and it"s the most common element that is used in foreign exchange founded on a graphic method. However, still it is one of the most underutilized in this analysis. Forex trend lines show the changes in share/currency prices over a certain period of time, and also they may be used as signals to indicate up and downs of trends in the foreign exchange market. Furthermore, these trend lines integral the direction and rapidity of a trending price. A lot of useful information can be taken out this simple graphic method. As example for forex trend analysis, trend lines gives the trader very accurate results. However, they are not valuable in predicting a reverse direction in prices of the Forex market. Trading platforms like Metatrader come with a large selection of drawing tools to use trend lines effective. |
Fundamental Analysis |
Fundamental analysis is a method used to evaluate the securities of the companies which participate in trading by analyzing the data that are fundamental to these financial institutions. The fundamental analysis takes in a discussion only those changeable things that have a directed connection with the company itself, especially its sales, growth potential, dividends, earnings, debt, assets and competition. Fundamental analysis focuses mainly on the business of a company in order to resolve is the securities should be sold or not. |
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Global Currency Trading |
As the forex market is one of the largest in the world it means that most of the financial institutions, banks and multinational corporations participate in it. They sell and buy currencies in huge amounts to manipulate the claims of international trade. Global currency trading involves trillions of dollars to make profits from fluctuations in exchange rates and in speculating on currency variations. As we can see trading is a global system throughout the whole world. |
Gold Standard |
This term means a monetary system where the government of a definite country standardizes their economic unit of their account that is the currency, to be easily converted into fixed weight of gold and vice versa. The rate of exchange under this gold standard monetary system is resolved by the difference of economy for an ounce of gold between the currencies. It was used mostly in the end of the 19th and the beginning of the 20th century and also during the war period. Behind the World War II was modified a new version of the gold standard – Bretton Woods agreement – the successor of the first monetary system with the gold standard. Even so, still notwithstanding not so long success it was also depended on gold reserves. |
Good Till Cancelled Order (GTC) |
Good till cancelled order is an order to sell or buy the security at a limited or particular price that stills active up to the time when the investor decides to cancel it or it filled. In the case when there were no good till cancelled actions and instructions the order will breathe out at the end of a day trading when the order was sited. Usually GTC order is cancelled by brokers after a month or two. Such type of order mostly is set at a value that is away from the price it was set at first. If the good till cancelled order still stays unfilled, the broker will usually corroborate from time to time that the client still owns the transaction and wants it to occur after it is reached the target price. |
Greenback |
It is a slang term which is used to name of the US notes of paper dollars. Greenback is named so because of the color on their backs, though, during the civil war it had a negative meaning as greenbacks didn"t have a secure and fixed financial support, and they were not worthy the full value of a dollar. During the civil war, the United States created over 400 million dollars to support and finance this was. The government used this currency with the aim of paying back private and public debts. The prices varied according to the state of the war"s stages of failure and success. |
H | |
Hard Currency |
Hard currency is a type of currency also called strong currency that has a stable exchange rate with respect to other currencies, which are freely converted into another currency and are widely used in the international transactions in the capacity of standard of deferred payments. It tells about stability of the country in its political and economic situations. Hard currency is accepted throughout the world as a form of paying for goods and services. It is a stable currency and has a high liquidity in the Forex. The examples of such a hard currency are the British pound and the United States dollar. |
Hard Money |
It is the name for silver/gold/platinum coins, something that is worth for its metal. Hard money is used because of the stability, and it makes a stream of funds more predictable. Nowadays, a lot of countries use money that is declared by a government to be a legal tender even when it is not replaceable into standard specie, which is made a legal tender by the edict of a government. |
Hedging Strategy |
It is a technique of a protection from financial exposure on Forex trading under a forthcoming of certain risk during the currency trading. Hedging strategy is used to minimize the risk of an exposure that might appear in the time of Forex trading. This strategy is mostly used by professionals who now how the risk that may happen because of unpredictable situations on the markets and who work with financial instruments. To reduce an exposure, traders will use different hedging strategies that are developed for such sort of situations in the forex market. |
History of Forex Market |
This term means a very high, rapid and a large uncontrolled increase of the prices because of the currency"s lost values. It is hard to numerate the precise numbers of hyperinflation and there is no other exacting definition of it. According to this term, the devaluation of money occurs and that in turn, leads to the depression and crisis in the country where this hyperinflation takes place. It appears because of a big amount of banknotes but loss of its value. The prices rise with extremely tempos and the currency becomes worthless. |
Hyperinflation |
Fundamental analysis is a method used to evaluate the securities of the companies which participate in trading by analyzing the data that are fundamental to these financial institutions. The fundamental analysis takes in a discussion only those changeable things that have a directed connection with the company itself, especially its sales, growth potential, dividends, earnings, debt, assets and competition. Fundamental analysis focuses mainly on the business of a company in order to resolve is the securities should be sold or not. |
I | |
Inflation |
For the contracts that are going to appear in the future, initial margin needs are usually set by the exchange. Nowadays, the economy of a country considers as a stable when its rate of inflation doesn"t start to grow to the side of increasing that level. A country"s stability and economic growth depend very much on the inflation"s level. |
Initial Margin |
It is a specified sum of money, which is lodged by both sellers and buyers who will make contracts to guarantee the fulfillment of the terms of the contract. Initial margin is a certain percentage of cash or some securities, which are required to be lodged before winning in different margin transactions. The minimum percentage that is required for the contract is 50% but sometimes broker advice to deposit a bit more than fifty percents. For the contracts that are going to appear in the future, initial margin needs are usually set by the exchange. |
Intelligent Forex Systems |
Intelligent forex systems are the automated systems that are directed to track the events that occur in the complex Forex trading. Such automatic platforms pay a valuable role in the receiving extra income as the result of thorough analysis and tactics that are researched in currency trading. Intelligent Forex systems are called for the accurate examination of all receiving signals during the trading and taking them into account on the way of predicting the future fluctuations of an exchange rate. The big advance of such a system is the absence of a psychological factor that makes the trading in Forex unable to think and decide rationally. |
Interbank Market |
It is the market where the currencies, financial instruments and loans are trading between financial institutions, companies and banks. Interbank market permits traders to make profits from speculating on the movements and fluctuations in the price of currencies. It is the international bank, which is dealing with a huge amount of money, counting in trillions of dollars per day for turnovers. It is also a method in which the spacious majority bargains are participated and a single financial market where companies, banks and financial institutions borrow short-dated capital from other banks having an outraged liquidity. |
Interbank Rate |
It is the interest rate that is charged on short-dated bond issues that are made between the banks. This interbank rate is appropriate to the short-term interbank market so that it is possible to borrow money that depends on a term length of a contract for a loan. Such market permit other financial institutions with liquidity needs to borrow in a short period of time from other companies with excesses, that adapts those banks to elude keeping far too large sums of their means, which are based on liquid assets such as cash to control any implicit expenses from the clients. |
International Forex Market |
A market that allows traders to earn money from speculating on the currencies. Traders need to react in a fast way according to all the rates of currencies that fluctuate on the international Forex market. It is the easiest way to enter the world of trading as for the experts and for the beginners as well. An international Forex market allows traders to deal with the currency of all over the world between each other. It is the largest market of finances in the world that developed the communication more than any other of such markets. The main participators of this international Forex market are governments, large banks, multinational organizations, foreign exchange trader and central banks. The persons who trade individually in the international market make up a small fragment of such a large currency market. |
International Monetary Fund (IMF) |
It is an intergovernmental structure that supervises the world financial system by pursuing the macroeconomic strategies of its member countries, and especially of those that have an influence on the exchange rate and the equilibrium of payments. International monetary fund is created with the aim of:
The Fund plays three main roles in the world monetary system. It interrogates and observes economic and financial events, lends means to countries with some difficulties in balance-of-payment and supplies with technical support and teaching for those countries requesting it. |
L | |
Leading Indicators |
It is a measurable economic indicator that modifies in advanced in the beginning of an economy to tag a special exemplar or trend. Samples of leading indicators contain jobless insurance claims, building permissions, account changes, making workweek and prices of the securities. The Federal Reserve System observes a lot of these indicators as it makes decisions of what to do about the interest rates. There are some concomitant indicators as well, which transform nearly at the same time as the global economy, and retarded indicators, which transform after the general economy, but these are of minimum utilization as prophetical tools. Leading indicators are employed to predict the movements in the economy, but they are not always correct. Connected profits are ordinary a fine leading indicator of the Forex market because traders and investors wait and speculate trends in the economy. |
LIBOR |
It is an abbreviation for London Interbank Offered Rate. It is an interest rate based on which banks borrow loans from other banks of the London interbank market for different terms from one day to five or more years. This Interbank market permits financial institutions, which are with liquidity specifications to borrow in quick terms from other banks with leftovers, that enables these banks to eschew keeping too large sums of their funds as liquid funds. The LIBOR is officially set every day at 11:00 GMT by British Bankers Association, that is a small group of big London's banks but the rate varies over a day. |
Limit Orders |
These are the orders that are given to a broker with the aim to buy an indicated amount of securities at suggested or lower of a mentioned price, or to sell them at the suggested or higher specified price. This price is called the limit price. These limit orders guarantee that a client will never overpay for the securities more than for his/her fixed limit. These orders are very typical in the market. Such an order allows the investor or a trader to bind the length of a period the orders can be distinguished before canceling them. The limit orders are more favourable because they help to prevent the risk of losses that might occur in purchasing or selling financial instruments. |
Linked Exchange Rate System |
It is a system of administrating an exchange rate and a nation"s currency by connecting the state currency to other base currencies that is kept at a set ratio in entrust at domestic internal banks. When the exchanged rate is fixed, there is typically no intervention from the authorities or over monetary policy resolutions that will influence the exchange rate. Currency is issued only when there are purveyances with the aim of supporting the linked currency. In case when the exchange rate starts shifting from the set ratio, there is an immediate adding to or taking out the currency from the circulation with the purpose to balance the ratio back. This linked exchange rate system is good for the stabilizing the currency that helps to hold the inflation on an extremely low level. |
Liquidation Level |
A liquidation level is a peculiar level that is used in Forex trading, when a trader"s account reaches causes that demand a liquidation of Forex positions. This level is presented as a percentage worth of funds. It is used to prevent a risk of increasing the Forex trader"s positions. When a liquidation level is set, it helps to decrease the risk of losses and prevent the trader of being unable to return the leverage that is given at the start of participating and earning money in Forex trading. As the Forex trading market uses leverage in most of the cases, the liquidation level is an appropriate insurance for the dealers who hold traders" accounts to prevent losing money and possibility of repay the assets that were borrowed to do the Forex trades. |
Liquidity |
It is the aptitude to quick and cheap convert assets into cash. It refers to the fact that bank notes are the most liquid funds. It is also known as "marketability". Also it refers to the extent when assets or securities can be sold or bought without influence theirs price. Usually liquidity is described with a high level of commercial activity. As a rule it is calculated by utilizing liquidity ratios despise the fact it doesn"t have a particular liquidity formula. |
Long Position |
It is the situation when the investor wants to purchase or contracts to buy shares, commodities, currency or other securities expecting that the asset will be increased in price after holding them with a long position for a period of delivery instead of transferring it with a counter-contract. Such investor is called a bull speculator. It is also called long and is the contrary of a short position. |
Low Risk Forex System |
It is a system that is directed specially to prevent the traders from high losses of money and helps to achieve more profits. The low risk forex system allows the traders to ensure their funds from unexpected lost and set peculiar options for decreasing a possibility of total bankruptcy. After careful analysis and studying the signals and all the fluctuations of the market, this system suggests some sort of strategies that might stave off from failures in Forex trading and will try to find the most suitable way of making profits without big losses. It is based on the history of the events on the Forex market and traders" commands, then a fully automated method of trading. Besides the automatically trading, this system can also be manually guided but the human"s and subsequently the psychological factor may influence the result not in the better way of trading. |
M | |
Major Forex News |
Major Forex news informs the parts of a trading process about all important events that have happened during the certain day of trading with a purpose to give a push for making further steps in decisions about dealing business on the Forex market. This news helps the traders, dealers and other participants to follow the updated information about fluctuations in prices of the currency which is the main object of Forex trading. It is a source of important information in the Forex market. |
Margin |
A term which is used in trading to designate the difference between the prices of goods, exchange, percentage rates and other activities. In trading, it is the distinction in the prices of buying and selling goods. In urgent stock exchange transactions margin means the difference between the rate of a buyer and the price of a seller. Furthermore, the term margin refers to the definition that means a certain amount of money on the trader"s account that is necessary for the settlement of transactions. The size of a margin limits the maximum diseconomies that might occur in the result of unsuccessful trading. |
Margin Call |
It is an order that is fulfilled automatically by a system when the client"s account has a lack of margin. In the case of a shortage of funds, all the positions of a trader on this account are closed, and the current loss or a profit about it is committed. A margin call is a demand about margin. When the assets from the broker are not coming, and the loss is continuing to grow, in that case s broker has a right to close the deal with losses forcibly. That"s why the experienced traders try not to bring such a situation to a margin call. After closing the Forex position the aggregate result is formed that shows the difference between the prices of selling and buying, and also the margin is unleashed to which the result of a bargain is adding. If the bargain is closed with the positive balance, a trader will receive a sum on the account that exceeds the bond, and if the balance is negative, then there will be a withheld of losses from the pledge of a bargain. Margin call exists to secure the broker against possible losses. |
Market Makers |
Banks, investment firms, brokers or dealers who affirm firm offer and bid prices of securities and are ready to wait for a certain period of time to be able and compliant to sell or buy them at publicly listed prices. These firms demonstrate bid and ask prices for particular numbers of particular shares, and there is a connection between these prices. The above financial institutions will instantly sell from or buy for their own accounts. Market makers are one of the essential elements for supporting liquidity and effectiveness for specific stocks that they make markets in. Often there is a stringent division of the brokers" side and the market-making side, then there might occur an inducement for brokers simply to suggest securities, owing to the firm that makes a market in that certain security. |
Martingale Trading Strategies |
It is a special strategy that is based on a devolved gambling system in the 18th century in France. This strategy supposes to increase the lot size twice each time the trader loses. As a result when there will be a profit it could return the previous loss and of course gain the first received amount. It is based on a thought it is impossible to lose all the time and in that case, there is always a chance of winning. This Martingale Trading Strategy is very popular in a Forex trading system because it gives a trader the quickest way of earning money and receiving big profits. However, at the same time martingale trading includes large risk “It is possible to make a lot of money but you can lose also the entire depositâ€. |
Metatrader |
It is a technical analysis platform that was elaborated by Meta Quotes Software Corp. for the organization of a broker"s maintenances on the Forex markets. Metatrader is a complex of one full cycle of a broker"s services and allows the trader do not use some other extra software. It is supported only by Windows Operating system. According to the last news, the Metatrader 4 is widely used now, and the 5th edition is in releasing. That is why the first three versions of this platform are not supported anymore. |
Metatrader 4 (MT4) |
It is an up-to-date software platform that is used in Forex and includes all the needed components such as Client Terminal, Administrator, Server, Data Center, Manager, and Mobile. All of its platform is developed for making the Forex trading much easier and simpler to do the transaction in trading. The Metatrader 4 is directed on the Margin trading, but still it isn"t designed for the full-scaled work on the forex market. |
Metatrader 5 (MT5) |
The company MetaQuotes Software Corp. designed this platform for Forex trading with the aim of adding the possibilities that were not enabled in the above version such as a work on the Forex market. And now it is consisted of all the platforms that are used by traders and is directed for the organization of brokers. |
Metatrader Brokers |
Metatrader brokers are the Forex brokers that use that platform of a MetaQuotes Software Corp. with a purpose to help the traders and investors to make it less complicated and increase the possibility of making profits on circulations. These brokers use Metatrader software and analyze the receiving signals, control the events of market"s fluctuations. |
Metatrader Expert Advisor |
It is specially designed software that is used with the Forex trading platforms of Metatrader and directed to help the traders with the fully automated process of analyzing the signals of a market and make the decisions without human"s invasion. It includes a large number of strategies that allow testing all the offered strategies on this platform and excludes the psychological factor of human"s incursion in decided actions. |
Metatrader Trading Systems |
It is a certain trading system which is assigned for the better development in using Forex and increasing trader"s profits, and it is based on the Metatrader platform which is one of the popular platforms in Forex market. With the help of Metatrader Trading Systems traders receive the qualitative services in using all the strategies, analysis and signals that are directed to lift the profits by fluctuations and circulations in the prices of the currency. Metatrader Trading Systems with all the experience in successful trading may be counted as one of the suitable systems, which are directed to decrease the human"s factor on the deciding and predicting the next movements that might happen during the day trading. |
Micro Account |
It is a term which is used in Forex trading to designate the size of such account and its characteristics. It is also called mini account. Such micro account assumes the traders or the investors to participate in trading Forex without subscribing to a: “big†or “normal†accounts where are much bigger amounts circulated. Micro account is specially made owing to the partial trading sizes of it, and thanks to this smaller size the margin requirement can be smaller either. Such an account is a very good opportunity to receive an experience in trading with Forex for the beginners that can learn without losing a lot amount of money. But the brokers that are in the control over such accounts are behaving with an identical impulse as over other accounts. |
Mini Account |
It is a particular type of account, which is led by a broker for the client and used mostly by the beginners that are just starting the trading in Forex market and don"t want to lose more money than they can earn during the first few days of the trading. This mini account allows the traders to use not so big positions in a currency than in the standard or unlimited and regularly account. It allows to trade with much smaller size of contracts. Although an account is not big, the clients are still supplied with a full access to the same settings and materials as the ordinary owners of standard account receive – support, charts, trading platforms and etc. So it is much better to open and hold for some period of time the mini accounts to counterbalance the lack of experience in Forex trading. |
Mobile Forex Trading |
In the time of digital improvement Forex allows the traders to use special mobile platforms for the simplification trading in Forex anytime anywhere and under no problems with access to the signals of a Forex market. Mobile Forex trading is such a solution that provides the traders who want to be in the swim with web-enabled mobile platforms, software and other special devices, which can be installed to Personal Digital Assistants and phones to secure the traders with full and qualitative versions of wireless equipment that will help to be in touch with the Forex market 24 hours a day, seven days a week. Mobile Forex trading is the solution for the traders who don"t have much time for sitting in front of the computer and spending time on the learning of all the rates, news and other things instead of devoting it to some other duties. That"s why mobile Forex trading is an ideal helper in such sort of events. |
Money Converter |
It is a useful electronic tool that allows converting currency in a quick and simple way into another currency, using the up-to-date exchange rates of different countries around the world. Money converter is very simple to use and most of the time it is used with a purpose to find out how much of base currency will be needed for the conversion it into the foreign currency. It is used in Forex trading with the aim of precise and recent prices of the market. Very often the travelers who decided to visit a foreign country use the money converter to find out the price that he/she should pay for buying another country"s currency. |
Money Management |
It is a term which is used to define a certain process of managing money that contains its saving, investing, budgeting, spending and other things and refers to the professional money managers in a group or individually. Still everyone works with some kind of money management to operate with their personal funds. This term is also called as “investment management†or/and “portfolio managementâ€. There is a big amount of investment management services that are made to manage the large finances, such as pension plans or social funds. |
Money Market Trading |
Money market trading is charged with assets where securities are involved. This type of financial markets works with the different kinds of securities and money market instruments, which are being borrowed or lending for a short-term and have the original maturities for a year or less. Money market trading involves the investors and companies in a trading with much lower risk than ordinary stock markets. |
N | |
Neural Network Forex |
It is a term originated from artificial intelligence community that is created to reveal the actions that human"s brain can do. It consists of methods, which are directed to analyze and predict the events that might happen in Forex assuming data and past events, which place in trading. Neural network Forex differs from the usual digital way of analyzing the information about currency circulations and fluctuations. It creates the connections who are very much alike to human"s neurons and unlike the ordinary methods of learning about Forex market it researches the data and its own predictions to multiply the results in a better and more realistic way. Neural network Forex is used in making predictions on the market, but it needs some time to learn how to recognize and analyze the events and market"s changes. |
NFA |
NFA is for National Futures Association, which began its work in 1982 as the non-profit organization that regulates the futures market. NFA provides supports and protects investors from the fraudulent actions on the futures market via enforcing the regulatory programs. National Futures Association is also created to provide the unbiased arbitration and mediation services according to investor complaints. Since it is the independent organization, all the actions are unprejudiced to any member. The head office of NFA is based in Chicago, IL, and also one office in New York City. |
O | |
Offshore Forex Broker |
The offshore Forex brokers are simply the same Forex brokers with only one difference that their duties and abilities are fulfilled in another country and not where the trader or investor lives. One of the reasons the offshore Forex brokers are involved, that such usage and control of accounts may help traders and investors with very high taxes and limited leverage in Forex, which are certainly good advantages in leading business. Using the services of the offshore Forex brokers means that they control the accounts on behalf of a trader in another country while the trader stays at his own country. |
One Cancels The Other Order |
It is a special type of the order that is set with the aim of making higher profits. One cancels the other order means that some sort of order is given including itself two parts of the order that are set at the same time. Whereby one part of the order is made the other part of it is being automatically abrogated. Such type of order is very useful for those traders who are limited with assets and want to insure themselves from risks. For example, the trader gives the one cancels the other order to buy stocks and shares, which means when the market suggests buying shares, and they are bought, the order to buy stocks will be canceled, so is the same when it happens to the stocks that are suggested to be bought. |
Online Currency Exchange |
It is a certain service that allows traders to exchange the currency in anywhere place where it is needed. It is supplied with a currency converter that uses the up-to-date information and simplifies the process of exchanging currency of one country to another. Online currency exchange is directed to facilitate and make much easier for the traders the problem of searching for banks and staying in lines. |
Online Currency Trading System |
It is a system that allows trading currency online without leaving the place where the trader is. Such system is very convenience and helps the traders to deal with the Forex market twenty four hours a day, seven days a week. Traders have a full access to all the data of Forex, and they can analyze the events and changes without any problems and start trading anytime they want. This online trading system includes all the platforms, indicators and software, which are needed to a full and completed trading of currency in the Forex market. It allows the traders to take a control over their accounts in a very simple way and makes sure they got everything they need. It also has a full customer support which is directed to make the traders feel comfortable and satisfied. |
Online Forex Broker |
Online Forex broker is a broker that is directed to supply the traders with a full support and control over their accounts using the Internet. Such online brokers are spread all over the world and are supplied with all the necessary trading platforms, advisors, dealing desks and other information and instruments. This type of brokers has a difference from the others in a way that the trader has a wide source to find out all the information about its brokerage and confirm the reputation of a broker in a good or bad way. That is why the online Forex broker is one of the trustworthy brokers. |
Online Forex Trading |
Online Forex trading allows traders to have a control over their accounts and deal with the information about the happened events. Such trading refers to the fact that a lot of investors want to trade in Forex market as much time as possible. That is why the online Forex trading stands for the investor wishes and makes it easier to buy or sell the assets and the securities with the instant help of the Internet. This online trading helps the investors and traders to produce much bigger possibilities in making their profits higher. Thanks to the online Forex trading, clients become more satisfactory with a business. |
Open Position |
An open position is a position of securities or currency that fluctuates freely in prices during the changes of market conditions. The owner of an open position may hold his currency or stocks for a long or short term due to the desired results of the balance on the account. The open position stays not being closed for a period the trader decides. The day traders try to close the position before or at the close of trading and long-term traders leave the position opened for days, months or even years waiting for the transaction that will increase their income assembling the fluctuations of the market. |
Over the Counter (OTC) |
This term designates the financial instruments and securities that are not traded on a formal exchange market. In most of the cases the dealers come to terms by networks or phone calls. Usually this sort of trading is using by small companies, which don"t have such an amount of money to venture transactions in the ordinary exchange market, and they can"t be trading with a big list of requirements. Such securities that are offered over the counter may be also known as “unlisted stockâ€. A lot of investors can trade over the counter trading OTC and help traders to reconsider the usual state of their financials and holidays. |
Overnight Trading |
Overnight trading means the trading at late hours of the day between 9 pm and 8 am of the local time. In this evening time, the transactions occur with the investor"s position by the end of a day trading in Forex market, which stays open when the local market is closed. And the trade will be performed at some period of the evening or early morning. Overnight trading allows participation of international traders and all the traders who understand the risk of the events that might occur during the opening of the market on the next day. This type of trading has influence on the exchange rates and can be the reason of falling and rising of the prices at the time of opening the local market at the beginning of the next day. |
P | |
Pip |
It is a term which represents an abbreviation of the percentage in point and means the smallest value of the unit that the exchange rate is able to produce during the movements of the prices. It refers to the fourth decimal point of the currencies in the Forex market. And the least move that gives a pip is 0.0001, which stands for 1/100th of 1 percent and is usually referred to as one basis point. The only exception is the Japanese Yen that refers to two decimal places. |
Pivot Point Calculator |
It is a calculator that is used to compute pivot points for commodities, shares, bonds and other securities and currency, which has different levels of the prices in the period of trading. This calculator is directed to analyze technically the state of a Forex market and is used as an indicator to predict the changes and fluctuations of the market. It is aimed to calculate all the levels that are above or below the pivot point, and it selects the formulae that are needed in counting the significant prices. |
Pivot Points |
It is an indicator of technical analyze that is used to predict movements in the levels for securities, and it calculates the average of securities" low, high and closing prices of a day trading. The levels are resistance and support, and they are differentiated by increasing or decreasing the prices of these pivot points. Pivot points most of the time are used as an indicator of prediction and analysis of the foreign exchange market. It is computed by the sum of the prices divided by 3. These points are usually calculated with the help of the calculator. |
Political Risk |
Political risk is the risk that might occur pursuant to changes in politics or country"s instability and can lead the investors and traders to the loss of their investments. Such political situation influences the returns and abilities of making payments that even could be the cause of a license"s cancellation. Some political risks may be insured with the help of government institutions or the international agencies. Such kind of risk is also known as “geopolitical risk†and they could be the reason of decreasing the returns from the investments. It occurs as the result of changes the tax laws, expropriation of assets, restriction in repatriation of funds and tariffs that is the reason of movements in the country"s political structure. |
Position |
It is a term that represents the amount of liabilities, foreign debts or securities that are owned or borrowed by a dealer, individual, country or financial institution. That is a trade that is currently held open by an investor. Furthermore, it represents the agreement in foreign trading when one party agrees to sell or purchase the securities from or to another party. Traders usually take long or short positions to support inventories for trading also they close the positions and locked them in a profit of no less than 10 percents. |
Principal Exchange Rate Linked Security (PERL) |
This term means the capital issues in which the par value and size of percents are expressed in US dollars, and the amount of paying off the liabilities is recounted against the exchange rate of the USD to another foreign currency. Principal exchange rate linked security refers to the semiannually paid interest and the profits that are linked to Forex rates. Usually PERL is designated in United States dollars, but their remuneration is definite by the rate between specific foreign currency and the dollar within a particular time structure. A lot of companies and financial institutions will buy principal exchange rate linked securities as a resource of insuring from the foreign exchange risk. |
Professional Forex Trading |
Professional Forex trading is a trading which implies the full professional action together with an experience and supporting that determines the wisely and profitable managing of the account and capital during the process of earning money from the fluctuations and movements in the Forex market. Such trading provides investors with the full and professional recourses, instruments, platforms, calculators, software and strategies, which are directed to increase the profits in the most maximum way. Professional Forex trading means the experienced work in securities and currency exchange that allows a trader in the Forex market to participate in any kind of trading that is based on professional predictions about market"s changing. |
Professional Forex Trading Systems |
Professional forex trading systems are the systems that allow easy and full control over the accounts which are being used in a professional way with a certain sort of the experience in Forex trading. These systems include all the necessary products for trading that give an opportunity to receive the qualified and educated methods of using the strategies and all other instruments of the professional systems. Professional Forex trading systems allow the clients to operate the balance of their account trough a global network of individuals, corporations and banks trading currency from one to another value. Such systems offer competent, efficient, reliable and effective Forex software that is included for trading in every existing account. |
Profitable Forex Strategy |
It is a certain type of a strategy which is implied the aim of receiving and making as many profits as possible. Profitable Forex strategy includes the analysis and all the other instruments that are used in reaching the target of earning a big amount of money. Discovering the most profitable forex strategy is one of the processes in receiving gains from the currency trading. As there are a lot of strategies, which are directed to be the most profitable, trader has to analyze and find the most suitable strategy for him/her individually. The choice of the Forex strategy that might be the one depends on the trader"s currency trading system which is working with different types of trading with the aim of long or short term profits. |
Profitable Forex Trading |
Profitable Forex trading refers to the special way of trading that is held in the Forex market with the purpose of making high profits from the results of the movements and fluctuations of the market. This kind of trading determines the most suitable and best strategies and financial instruments for receiving income that is based on the analysis and monitoring the changes in circulations of the exchange rates and states of the securities. This kind of trading implies the usage of certain strategies and software to manage the accounts and increasing their balance. |
Q | |
Quote |
It is a term that requires the lowest ask or the highest bid price that is available for securities at any time when they can be sold or bought. Such quote shows quantity and price for what the trader is willing to purchase or sell the shares for. In addition, it determines the last and the most recent value at which the securities are traded by the agreement of buyer and seller when some sum of the funds was transacted. Furthermore, the term quote is known as a “quoted price†of an asset. |
R | |
Re-Quote |
It determines the value that is changed between the time of sending the order by a trader and attempt of a broker to execute it. This means that the time differs from a period the order was to a period it reached the broker. The trader can either accept the possibility that the worse price is appeared or cancel the order with the aim of making next orders that can be better than the previous one. Such situation can happen with brokers according to the fast changes and fluctuations of the Forex market conditions. |
Real Time Forex Trading |
It is a certain fore of speculation where the trader stakes on the fluctuations in the exchange rates of the pairs of currencies. Real time Forex trading refers to the condition of setting the orders which are directed on buying or selling a particular currency pair at the running exchange rate. As the real time Forex trading is totally electronic it means that the speeds of execution of the transactions are very fast, and this allows the trader to buy and sell quickly enough with the help of analysis to predict movements in the currency pairs that are based on fundamental and technical trading indicators. That helps to take profits and almost cut all the losses. |
Reserve Currency |
Reserve currency is a foreign currency that is held by major financial institutions such as central banks with the purpose of realization the currency intervention and settling the intergovernmental reclamations or affecting the domestic exchange rate. At present, the United States dollar is the fundamental reserve currency that is mostly used by other countries. It determines the fact that a large percent of commodities such as oil and gold are usually valued in US dollars, which is the main reason of holding this currency in other countries to pay for these goods. Reserve currency is considered to be reliable and strong for using it in international trading. Moreover, there are a lot of discussions about whether or not the USD will remain the primary reserve currency, or if it will move to the Euro. |
Resistance |
Resistance is the term that refers to technical analysis and determines the incapacity of a market or a stock to raise overhead the particular price on the purpose that sellers begin to exceed the buyers in a number for some period of time. Often resistance is directed to the term “resistance levelâ€. |
Retracement Levels |
Retracement levels are the levels that refer to countertrade moves and are based on the conception that the values will reverse or retrace a part of the foregoing movements before the resumption of their underlying vogue in the original direction. It determines the changes in prices that move in the opposite course of the preceding trend. These retracement levels are directed to identify a value level that an amendment may reach in advance of its possibility to reverse and continue the original course. |
Revaluation Rates |
Revaluation rates are the rates of the market that are used by traders to compute the sum of profits or losses that have been earned during the certain period of time. Usually these revaluation rates are directed to calculate the changes between the previous day and the current day of trading. It is calculated by a difference between closing rates of the above days. Such rates are used in order to find out and calculate all the profits that might occur after closing the rates. |
Risk Analysis |
Risk analysis is directed to the indecision of the predicted future of the chains of cash flows, statistics and fluctuations of stock returns, which refer to the resolution of the likelihood of training"s successes or failures and the states of economic in the future. It involves the researching of the based uncertainty of a fixed direction of Forex operations. The analysts work together with the professionals in prediction with the aim of minimizing future negative unexpected effects. Almost in every institution where the large business exists, the risk analysis is required to decrease the risk to a minimum. Such risk analysis allows ordinary and professionally traders to identify and lighten the risks that might occur during trading, but not elude them absolutely. Correct risk analysis often contains statistical and mathematical software programs. All Automated Forex Trading Software comes with built in money management and risk analysis. |
Risk Management |
Risk management is a certain process of analysis, identification and either decreasing or approval of doubts in making the decisions about investment. Substantially, risk management happens anytime when the investor, trader or fund manager analyzes and tries to measure the implicit losses after investing, and then takes an appropriate action that is given to decide about current events. Risk management might occur in two steps – deciding what risks can exist in a certain kind of investment and then coping with those risks in the most suitable way to the trader"s investment objectives. Such management befalls everywhere in the world of finances. |
Roll Over |
Rollover occurs while the investor or the trader makes transfers of the holdings of buyout plan to another without having taxes problems and consequences. In addition, it occurs while replacing the funds from a ripe security into a new issue of the identical or equal security. Another meaning of rollover is that the investor devolves from a charge and moves the positions to the subsequent delivery date. |
S | |
Short Position |
Short position refers to the selling of a borrowed commodity, currency or security with the outlook that the funds will fall in prices. Besides, in the meaning of options, short position represents the sale of an options' contract. Its contrary is long or long position. As an example is an investor"s borrowing the shares from a broker and then selling them on the open market where the short position is. Then the investor must return the stock he had borrowed by buying it from the market that is open. And if the price of stock falls, the investor will make a profit from buying it for less than he sold the stocks. |
Spot Fx Trading |
Spot fx trading is the meaning of the market where the commodities or foreign currencies are buying or selling with the purpose of immediately delivery or exchange. In addition, the futures transactions that will expire in the nearest month are considered for spot fx trading. |
Spot Price |
It is a term which refers to the current price of the Forex market actual commodity that can be purchased or sold at a particular time and place. Another term of a spot price is a cash price. That means that the value is quoted to a will of buying or selling the commodity at the certain period of time. |
Spread |
Spread is a sum of pips that occur between the bid and ask prices. It is an option that Forex brokers use to make and earn money on Forex trading, which is placed on the network. It represents the difference between the prices of bidding and asking. Besides it establishes the position of buying one option and selling another that is of the same group but of different series. Most of the time the spread is around the current value that the broker of Forex is paying. So during the purchasing the trader receives one end of a spread and during selling gets the other end, and vice versa. And when the time to close the trade comes. They will always pay the spread. |
Sterling |
It is a term that includes in itself a certain kind of ratio in the situation of limiting the risk of assets. It is used with the particular formula to measure the determinations of hedge funds that got the highest and biggest returns with the least amount of inconstancy. |
Stop Loss Order |
A stop loss order is an order that is given by a trader and refers to the purchasing or selling the securities or currency once its value increasing or decreasing a certain and particular price. It is directed to bind the losses of an investor on positions of securities. Such order is also called a “stop-market order†or “stop orderâ€. This strategy gives investors the opportunity to resolve their loss limit beforehand, excluding emotional and psychological factor of making the decisions. Besides, in situations of holidays where the trader can"t watch the stocks for rather a long period of time becomes a great idea of using the stop loss order. |
Support Levels |
It is a certain level of value at which many buyers aspire to enter the stock. If its price falls in the direction of a support level it is an inspection for the stock: the support will be either wiped out or reconfirmed. In the first case, it will be wiped out when the buyers are not entering the stock, and it falls below the level of support. And in the second case it will be reconfirmed when many buyers move into the stock, which will cause the rise and changes directly from the support. |
Swap |
It is a term which determines a type of the exchange that consists of two parts that are confirmed at the same time. It is a swap of one security into another, and they very often are used by investors who either hedge or speculate the aims. Lately, the swaps have increased to contain interest rate swaps currency swaps. |
Swing Trading |
Swing trading is such a style of trading that includes a trading strategy which is directed to make profits by keeping the positions for comparatively short periods, from a day to one week. It is very much alike with a day trading, but it has an insignificantly longer time horizon. Swing trading tries to receive gains from the transactions within a very little period of time. It involves technical analysis to search such a short-term price impetus for the stocks. This style of trading is mostly used by day traders and traders who trade at home. |
T | |
Ton of Money |
Phrase which is used in informal style, mostly slang language and means an immense sum of money. This term arises in various definitions from what is exactly a large amount of money. According to the Bureau of Engraving and Printing, a ton of bank notes at par value of one United States Dollar is equal to 908 000 USD – about $1 million. In coins thereafter it is different. The official weight of contemporary U.S. quarters as the US Mint confirms are 5.67 grams so one ton of money will value 40 thousand United States Dollars. And concerning pennies (at 2.5 grams each – it counts 363 000 pennies) a ton of these coins will be worth only 3 632 USD. |
Technical Analysis |
Technical analysis is a certain method that involves predicting the prices of the Forex market by a possibility of analysis the data and received information about the circulation and fluctuations in Forex values. It relies on the assumption that the data of the Forex market may help to predict the trends of the market in the future. It differs from the fundamental analysis by the lack of consideration of the peculiar price. It is believed that with the help of technical analysis, there is a possibility to predict the future price of the stock by studying the historical values and other trading changes. Furthermore, a lot of technical analysts suppose that technical analysis can be in use to the market as to an individual stock. |
Technical Trading |
It is a type of trading that is based on the usage of technical analysis and involves all of its methods to predict the future fluctuations and movements in the Forex market. With the help of technical analysis, there is rather a good possibility to trade currency and securities according to the strategies that are grounded on the bases of the technical instruments of analyzing the prices. Technical trading includes the analysis of historical data and all the events and prices that were noticed during the certain period of time. This type of trading can be involved to the Forex market as to the individual securities. |
Thin Market |
Thin market is a market with a low number of bid and ask offers. It is distinguished by low liquidity, high volatility and high spreads because of the little amount of holding transactions. This market with its small changes can have a gripping effect on the prices of the Forex market. With such a small amount of buyers or sellers may be typically resulted in a larger spread between the quotes. The other name for a thin market is the narrow market; it is the opposite of the liquid market. Subsequently, because of few bids and asks offers are quoted, for possible buyers and sellers may be quite difficult to deal in a thin market. |
Top Forex Trading |
Top Forex trading refers to the trading which is situated on the top and is the most suitable for exchanging during the day according to the movements and variations of the Forex market. This type of trading describes the trading that is qualitative and receives the signals about the events that are happening or have happened during the trading. It includes the experienced and professional Forex trading that helps the traders to feel themselves on the top of the trading and allows to involve and participate in all the methods of such trading. |
Top-Down Analysis |
Top-down analysis is a particular method of analysis that refers to the studying of the information from the whole picture and then analyzing it in more specified components and smaller details. This method very often is used together with the technical analysis and is rather a suitable form of increasing profits with a help of combined strategy in trading. For example, a day trader analyses first the events of the day that describes the movements in prices and then he or she examine all the changes of the hourly charts of this day trading. |
Trading Account |
It is a certain type of an account that is very much alike with a traditional and ordinary bank account and is directed to hold securities and cash, and it is managed by an investment dealer. |
Trading Indicators |
These are the indicators which are used in trading to provide the account with a big amount of money by making high profits. Such particular trading indicators allow the trader to add valuable options and tools in trading strategies and techniques, which will help in predicting the movements of prices in the market and its fluctuations. |
Trading Strategy |
Trading strategy is a predefined group of fixed parameters and rules that are used by traders to make the most suitable successful decision in trading and dealing with the securities. When the trader sticks to the particular trading strategy it allows excluding the emotional and psychological factor from investing. The use of special financial instruments helps to concentrate on the trading and make the trading strategies a great impact on the results of the trading. It involves the different types of methods in trading strategies, which are, as a matter of fact, directed to make the trading maximum quantified. Trading strategies may be either manual or automated through the using of computers to simplify the work with accounts and exchanging in the market. |
Transaction Exposure |
It is an alternative term of transaction exposure and is charged with the same meanings of changes in currency exchange rates. It is a risk that might occur during the business designation in the foreign currency, owing to the changes in the exchange rate. |
Trend Trading |
It is an investment strategy attempts to profit through the research and taking the position of the pair"s momentum in the certain direction. A long position is taken when the securities are trending upward and at the time when the short position is entered until the securities are in down trend. The traders of trend try to stand in their position up to the moment at what the trend breaks. Trend trading undertakes that the current course of the securities will continue in the future. |
Trend Trading Strategy |
It is a certain type of quote when the purchase and sell prices of securities are given. It also shows a spread between the prices and gives traders a thought of the present liquidity in the stocks. The two way quote gives more information to the traders than a last-trade quote, and this means that the price could only be the value at which the stocks were last traded. |
Two Way Quote |
Neural network Forex is used in making predictions on the market, but it needs some time to learn how to recognize and analyze the events and market"s changes. |
U | |
Uncovered Interest Rate |
This term represents a certain condition that states the equal difference between the interest rates of two countries to the change that is expected in exchange rates between the currencies of these countries. If there is no uncovered interest rate the opportunity to make gains is appeared. This rate is used in Forex trading to define the interest rate of the countries and their difference between the changes of these rates. |
Uptick |
It is a certain type of transactions in securities that occurs at a value that is higher than the previous one. The premise of appearing of the uptick is a transaction value that is followed by a raised transaction price. Uptick refers to the stocks, but also it may be extended to the securities. Uptick represents the dealing with the stock market at a price that is above the preceding transaction for the equal securities. It is the opposite of downtick and it is also called a plus tick. It takes it origin from the sign of an increasing in price of securities by a plus indication on a panel higher than stock market stations. |
Uptick Rule |
It is a one-time rule prescribed by the SEC which demands that every not a long sale bargain is entered at a value that is above the price of the previous trade. This uptick rule was introduced in the Securities Exchange Act in 1934 as a Rule 10a-1 and was accomplished in 1938. This rule forestalls short sellers from appending to the downward urge when the price of the funds is already undergoing sharp declines. The uptick rule can be disregarded during the trading of some other types of different financial instruments. These instruments may be low on a downtick as the result of a high liquidity and including enough customers who will enter a long position, guaranteeing that the value will be hardly ever driven to unreasonably low levels. The other name of this rule is the “plus tick ruleâ€. |
US Prime Rate |
US prime rate is a rate that is charged by the US commercial banks by lending to their main incorporated customers. It is often used as an indication in computing rate changes to adaptable rate mortgages and other changeable rate in short term loans. The prime rate is used in the computing of some private and particular student loans. Besides, a lot of credit cards that have variable interest rates are with the rate which is specified as the prime rate with a set price that is usually called the spread. US prime rate doesn"t change regularly and the most common prime rate in the USA is the Wall Street Journal Prime Rate. The prime rate is an indicator of a lagging. |
V | |
Value Date |
It is a date in the future which is used in settling the price of a product that has fluctuations in values. So there is a possibility of noticing that the use of value dates in settling the paying of accounts and products differs due to the dissimilarities in the timing of valuation. These products contain advanced currency contracts, interest receivable or payable on personal accounts and option contracts. Furthermore, value date is directed to the term “valutaâ€. |
Variation Margin |
Variation margin is a supplementary amount of money that is required to make in the form of deposit to a trader"s account so that it gives a possibility to uphold adequate sum of money with the aim of the loss discount after the events when the essential losses were. This variation margin is based upon the opposed changes in prices of the futures contracts that are hold by the clearing members who make payments in their corresponding clearing houses. It is paid in order to diminish the exposure which was created in the result of carrying very risky positions. Clearing organizations have an ability to maintain a level that suits to the risk and cushions by insisting on the variation margin from its members against important devaluations. |
Volatility |
It is a rate where the price of securities changes up and down. It is based on computing the annualized standard deviation of fluctuations in prices during the day. The price has high volatility in the case that the stock prices are moving up and down fast and dramatically over not very long periods in either direction. If the price is mostly stable and doesn"t change, it means that the volatility is low. So, volatility is directed to the amount of indecision or risk about the volume of changes in the securities" prices. |
W | |
Whipsaw |
It is a state at which the price of the security aims in one direction but then is quickly moving in the opposite direction. The whipsaw patterns involve different movements in prices as an ascending movement that then leads to a violent downward move. This type of whipsaw pattern is a cause of falling of the positions of the shares" prices to the original positions. And the second type entails the price of the share that falls not for a long time and then suddenly the price sharply surges up towards the gains of positive results to the securities" original position. |
World Currency |
World currency is a term that is directed to a currency in the international finance and in the foreign exchange market in which the extensive majority of international bargains participates and, which refers to the world"s fundamental reserve currency that defines the value of currency in gold. |
World Forex Trading Times |
It is an ability of the Forex market to trade online round-the-clock during the working hours all over the world. There is always at least one of the financial institutes open for trading. As some Forex markets are closing the others elsewhere on the planet still works. It gives a great flexibility of trading times. Thanks to the overlapping of the Forex hours, the securities and currencies are being traded all the time throughout the world as someone somewhere on the planet buys or sells the shares, and the Forex trading continues for 24 hours a day. This means that trading in the Forex market almost never stops. So the world Forex market times are held while the markets are open all over the world. |
Y | |
Yankee Market |
It is a term that is used in slang language to determine the foreign market in the United States. Yankee market most of the time is used by non-US residents who call these Forex markets, and it is directed to the slang term that was used to name the Americans – a Yankee. It became a general term as it is used not only in business slang. It refers to identify the markets of the world"s famous markets as, for example, a term “samurai market†that is directed to define a market in Japan. |
Yard |
It is a slang term that refers to a billion units in the currency. It is used most of the time in the Forex trading with the purpose to distinguish the similar sounds of the words “millionâ€, “billionâ€, and “trillionâ€. For example, it is really needed in the trading of Japanese Yen, as the one billion of Yen is almost equal to 10 million dollars USD. And when a trader wants to buy a billion of Yen, he would call for a yard of Yen with the aim not to misunderstand with the like sounds but different meanings. |
Z | |
Zero Uptick |
Zero uptick is directed to determine the price of the transaction that is the same with the previous price of a transaction, but it remains higher than it was before some previous recent prices of a transaction. Zero uptick is popular and important for short sellers, who are trying to eschew shorting and increasing stock. And it isn"t suitable for all the markets because of different regulations and rules in using this method of shorting on a zero uptick. The other name of this term is zero-plus tick and the opposite term is zero-minus tick. |