Forex glossary of terms

Forex glossary of terms

Posted: teuton Date of post: 25.05.2017

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Forex Books for Beginners General Market Books Trading Psychology Money Management Trading Strategy Advanced Forex Trading. Forex Forum Recommended Resources Forex Newsletter. Forex Course Forex for Dummies Forex FAQ Forex Glossary Guides Payment Systems WebMoney PayPal Skrill Neteller Bitcoin. Contact Webmaster Forex Advertising Risk of Loss Terms of Service. Please disable AdBlock or whitelist EarnForex. ADX Average Directional Index A standard technical indicator that measures the strength of a trend.

Ask Offer Price of the offer, the price you buy for. ATR Average True Range A standard technical indicator that measures the currency pair's volatility. See a detailed guide on ATR. Aussie A Forex slang name for the Australian dollar. Bank Rate The percentage rate at which central bank of a country lends money to the country's commercial banks. See central banks' interest rates table. Bid Price of the demand, the price you sell for. Broker The market participating body which serves as the middleman between retail traders and larger commercial institutions.

See the complete list of Forex brokers. Carry Trade In Forex, holding a position with a positive overnight interest return in hope of gaining profits without closing the position in order to gain from the central banks interest rates difference. See the carry trade strategy. See the list of CFD brokers. Commission Broker commissions for operation handling.

EA Expert Advisor or Robot An automated script that is used by the trading platform software to manage positions and orders automatically without or with little manual control. See our free expert advisors for MetaTrader. ECN Broker A type of Forex brokerage firm that provide its clients direct access to other Forex market participants.

ECN brokers do not discourage scalping, do not trade against the client, do not charge spread low spread is defined by the current market rates but instead charge commission for every executed order. See the list of ECN brokers. ECB European Central Bank The main regulatory body of the eurozone's financial system. Elliott Waves A set of principles for chart analysis based on 5-wave and 3-wave patterns. See our daily Elliott Wave analysis videos.

Fibonacci Retracements Levels with a high probability of trend break or bounce, calculated as the See the Fibonacci calculator. Flat Square Neutral state when all your positions are closed. Floating Leverage A leverage that changes depending on the total size of open positions. Fundamental Analysis The analysis based only on newseconomic indicators, and global events.

Forex 101

Gap A difference between the previous period's close price and the next period's open price. See the gap trading strategy. GDP Gross Domestic Product A measure of the national income and output for the country's economy; it is one best buy no restocking fee the most important fundamental indicators in Forex. GTC Good 'Til Canceled An order to buy or sell of ajn steelstock ltd newmarket currency at a fixed rate or worse.

The order is alive good until its execution or cancellation. Hedging Maintaining a market foreign money exchange locations nj which secures the existing open positions in the how to distribute signals to binary options direction.

Jobber A slang word for a trader who is aimed toward fast but small earn home life moms money work short-term profit from intraday trading.

Jobber rarely leaves open positions overnight. Released monthly by the Conference Board. Limit Order An order for a broker to buy a lot for fixed or lesser price or sell a forex glossary of terms for fixed or better price.

Such price is called a limit price. Liquidity A measure of markets that describes relationship between the trading volume and the price change. Long A position which is in a Buy direction. In Forex, the primary currency when bought is long and another is short.

Forex Trading Glossary, Learn About Currency Trading |

Loss A loss from closing a long position at a lower rate than opening or forex glossary of terms closing a short position with a higher rate than opening. Loss may also occur options guide bull call spread the profit from a position's closing was lower than the broker's commission on it.

Lot A definite amount of units or amount of money accepted for operations handling usually, it is a multiple of Margin Money that the investor needs to keep at a broker's account to execute trades. Margin supplies the possible losses that may occur in margin trading. Margin Account An account that is used to hold investor's deposited money for trading. Margin Call A broker's demand to deposit more margin money to the margin account when its size falls below a certain minimum.

Market Order An order to buy or sell a lot at a current market rate. Market Price A current rate, at which the currency is traded in the market. Martingale A position sizing strategy that involves doubling the bet after each loss. See the Martingale trading system. Momentum A measure of the currency's ability to move in a given direction.

Moving Average MA One of the most basic technical indicators. It shows the average rate calculated over a series of time periods. Exponential moving average EMAweighted moving average WMAadaptive moving average AMAetc.

forex glossary of terms

Open Position Trade A position on buying long or selling short of a currency pair. Buy general atomics stock prices An order for a broker to buy or sell a currency at a certain rate.

Percentage Allocation Management Module PAMM A broker-side system that allows investors to invest with traders, and allows traders to manage investors' funds using the broker's platform. See the list of brokers with PAMM brokers. See the pivot points calculator.

forex glossary of terms

Pip Point The last digit in a currency rate e. Profit Gain A positive amount of money gained for closing the position. Principal Value The initially invested amount of money. QE Quantitative Easing A monetary policy employed by central banks.

It involves buying and holding the financial assets from the country's financial institutions to provide money supply and keep the prices of those financial assets from falling. Resistance A price level where an uptrend stalls. Its breach can lead to a significant price rally. RSI Relative Strength Index A technical indicator that measures the power of a directional price movement by comparing the bullish and bearish portions of the trend.

Scalping A style of trading notable by a big number of positions that are opened for extremely small and short-term profits.

See the scalping trading strategy. Settled Closed Position A closed position, for which all needed transactions have been made. SL See Stop-Loss Order below. Slippage Execution of an order at a rate different from expected ordered. The main reasons for slippage are "fast" market, low liquidity, and poor execution quality by broker.

Spread A difference between Ask and Bid rates of a currency pair. Standard Lotunits of the base currency of a currency pair you are buying or selling. Stop-Limit Order An order to sell or buy a lot at a certain rate or worse after it first reaches some opposite price level.

It is a combination of a stop-order and a limit-order. Stop-Loss Order An order to close a position when the market reaches a certain rate. Normally, it is used to avoid extra losses when the market moves in the opposite direction. Sometimes, it can be used to lock in some amount of profit See Trailing Stop-Loss below.

Forex Trading Terminology » Learn To Trade

STP Straight Through Processing A type of order processing that does not require any manual intervention and is fully automatic. Support A price level where a downtrend stalls. Its breach can lead to a significant price decline. Swap An overnight payment for holding a position in Forex.

Since you are not physically receiving the currency you buy nor delivering the currency you sell, the broker should pay or charge an interest rate difference between the pair's two currencies. Swaps can be be negative or positive. Take-Profit Order An order to close a position when the market reaches a certain price.

It is used to realize your profit. Technical Analysis A analysis method based only on the technical market data rates, time, and volume with the help of various technical indicators.

TP See Take-Profit Order above. Trailing Stop-Loss A stop-loss level that is moved closer to the current market rate as the position's loss decreases or its profit increases.

See this post on using a trailing stop in MetaTrader 4. Trend A market's direction established under an influence of various factors. Usable Margin Free Margin Amount of money in a margin account that can be used for trading. Used Margin Amount of money in a margin account already used to hold open positions. Volatility A statistical measure of the number of price changes for a given currency pair in a given period of time.

VPS Virtual Private Server A virtual environment hosted on a dedicated server that can be used to run the programs independent on the user's PC. Forex traders use VPS to host trading platforms and run expert advisors without unexpected interruptions.

Forex Trading Terms | Investopedia

See the list of Forex VPS providers. VSA Volume Spread Analysis A chart analysis method that focuses on the trading volume and the price range. Please, disable AdBlock extension in your browser.

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