From Tradebifo you will be able always to find in the Forex glossary the terms interesting you, determinations, concepts.
Purchase or sale of the financial instrument and simultaneous opening of an opposite line item in other market for the purpose of profit earning at the expense of a short-term discrepancy of rates.
The decision of competent department consisting in adjustment (adjustment) of domestic economic policy, directed to elimination of an imbalance of payments or determination of the official exchange rate of currency which exerts impact and on its value on forex the market.
Specifying to the dealer to purchase or sell at the best possible price.
Pro rata charge (Accrual) or collection of an award on forward currency transactions (orders) which have a direct bearing on transactions of a deposit swap, for the specific transaction.
The order to the dealer to trade at the specified or best price.
They say, the currency "grows" when it becomes stronger due to increase in demand for it in the market.
The price Ask (Ask) is the price at which participants of the market are ready to sell a certain currency in currency or the cross-foreign exchange contract. At ask price the trader can purchase a reference currency. In the quotation it is specified on the right. For example, in the quotation of USD/CHF 1,4527/32 a purchase price - 1,4532, that is you can purchase each American dollar for 1,4532 Swiss francs. The same, as offer price (offer).
The market which is characterized by reduction of prices (quotations).
The spread Forex (spread) is a difference between the prices of purchase (Ask) and sale (Bid). For example, in the quotation of EURUSD 1,4527/29 a selling price - 1,4527, a purchase price - 1,4529, therefore, the spread on this currency (a difference between the price of Ask and Bid) is equal to the 2nd points.
The price of bits (Bid) is the price at which the client is ready to purchase a certain currency in Currency or the Cross-foreign exchange contract. At the price of bits the trader sells the Reference currency. In the quotation it is specified at the left. For example, in the quotation of USD/CHF 1,4527/32 a selling price (bid price) - 1,4527, that is you can sell each American dollar for 1,4527 Swiss francs.
Type of a price chart which represents four importance of the price: a maximum and a minimum on the basis of which vertical line, and also opening prices and closings which are noted by strokes respectively at the left and to the right of vertical line is represented.
It is that currency in currency pair which is bought and sell for other currency. This currency is in the first place in currency pair.
The agreement on establishment of the fixed rates of principal currencies, possibilities of interventions of Central Banks in the foreign exchange markets and price fixation of US dollar to gold - 35 dollars for ounce. The agreement worked till 1971 when the president Nixon repealed the Bretton Woods agreement and established the floating rate on principal currencies.
The market which is characterized by price increase (quotations).
Slangy name of the exchange rate of pound sterling/US dollar (GBP/USD). The name "FX Cable" (or simply - "cable") arose because quotations of pound sterling for the first time began to be broadcast on the American continent in the middle of the 19th century on a transatlantic cable.
Simultaneous sale of low-profit currency upon purchase of currency with more high interest rates. Example: Japanese yen and its cross-currency pair of GBP/JPY or NZD/JPY.
Currency code — rather short sequence of figures and/or letters used for submission of the name of monetary unit and its identification in various systems of information transfer. The most often used currency codes of several countries according to the international standard ISO 4217 are below included:
- CAD - Canadian dollar
- EUR - euro
- JPY - Japanese yen
- GBP - British pound
- CHF - Swiss franc
The second currency in currency pair.
These are currency pairs in which one currency is estimated in terms of other currency without participation of US dollar. For example: EUR/GBP.
The market of the cash financial instrument on which futures and options are based.
The financial analyst (chartist) - uses charts and schedules, and also historical data for determination of trends and forecasting of movement of the price.
The state or parastatal organization determining monetarist policies of the country. For example, in the USA - Federal Reserve Bank, in Germany - Bundesbank.
The schedule of the Japanese candles Forex displays the prices of the trade range, and also opening price and closing. If opening price of high price of closing, a rectangle between these prices shaded (painted over), otherwise a rectangle is empty.
Remuneration to the broker for transactions in the form of commission (commission).
Participation of Central Banks in the course of price regulation in the market of currencies. The approved intervention is collateral actions of several Central Banks on adjustment of the currency rates.
Method of establishment of currency parity and determination of the weighted average rate of one currency in relation to a certain set of foreign currencies. A set of currencies in a currency basket and currency components are installed randomly, depending on the purpose.
Two currencies of which the quotation of forex consists. For example: EUR/USD.
Probability of adverse change of the currency rates.
Line item which isn't subject to price fluctuations of currencies any more. Position closing consists in the return sale or purchase of such quantity of currency which compensates an open line item.
The stock exchange transaction at the prices is lower than those that were in the last similar transaction.
Reduction of currency value as a result of market impact.
The transaction on forex where the parties agree to accept and provide the actual delivery of currencies according to the transaction.
Rate with which Central Bank grants the loans to financial institutions of the country.
Representation of cost of unit of foreign currency in national currency units.
Technical expertize figure when the rate was twice lifted to some level, and then again fell.
Technical expertize figure when the rate fell by some level twice, and then again rose.
The speculator who opens and closes line items in the market during the exchange session and doesn't leave open line items for the night.
It is the price of monetary unit of one country expressed in monetary units of other country.
Means on the account, available to the conclusion of transactions.
Currency of the European currency Union which succeeded ECU.
Main objective of the European currency Union - creation of single European currency, or euro which officially replaced currencies of EU Member States in 2002. In January, 1999 the first stage of input of euro began. Euro is used as a full instrument of payment now and is in use in EU countries - Germany, France, Belgium, Luxembourg, Austria, Finland, Ireland, the Netherlands, Italy, Spain and Portugal.
Central Bank of the new European currency Union.
The physical person or legal entity which is the intermediary and bringing together buyers and sellers for a fee or commission charges.
Physical person or legal entity which works as a principal or the second party according to the transaction. Forex the dealer takes the responsibility for the second party of the transaction, trying to earn on spread in case of position closing in the subsequent transaction with other participant of the market.
Completion of settlement according to the transaction.
Unrecorded profits / losses (floating profit/loss) on open line items in case of the current values of rates.
Open line items are closed by the rule FIFO (first in first out). All line items opened within a certain couple of currencies are liquidated in that order in which they were originally open.
Money on the trading account which can be used for opening of new line items. The free margin is determined by a formula: current status of the account minus necessary margin.
Central Bank of the USA.
On a dealer slang - a neutral provision when all line items, for example purchase 500 000, and then sale of 500 000 dollars and creation thus of a neutral line item are closed.
The transaction made in the market of real financial instruments in case of which delivery of goods is postponed until a certain moment after the conclusion of the contract. Though deliveries are made in the future, the price is determined on the date of the conclusion of the transaction.
The market in which there are various transactions to currency.
The analysis of economic and political information for the purpose of forecasting of a situation in the financial market.
The liability to provide goods or the tool at the specified price in the specified date. The main distinction between the future and the forward that the first is traded at the exchange, and the second - in the curb market.
Gross internal product (Gross National Product/GNP) plus income gained from investments or works performed abroad.
Aggregate value of the goods and services made in the country.
Price range in which there were no quotations.
The buy order or sale at the specified price (Good-Till-Cancelled). Works before execution or cancellation.
Slangy name of the American dollar.
Currency HKD - monetary unit of Hong Kong.
Currency economically and politically steady countries to which investors have trust.
Purchase or sale at suggested price.
The figure of the technical analysis "Head and shoulders" consists of the high peak accompanied on both sides with peaks of smaller height. It is considered that this figure is often followed by fall of the price.
The fund using the aggressive strategy which are unavailable in open-end funds including trade with a shoulder, the swaps, arbitration applied to increase in profitability.
The hedging margin - required cash cover for position opening.
Initial amount of the providing necessary for position opening. Serves as an obligation fulfillment guarantee.
The quotation serving for information on current price of the tool according to which the company doesn't accept the order of the client.
Representation of cost of national currency unit in terms of foreign currency.
Instant Execution - a procedure for granting of quotations to the client without preliminary request. The client sees in real time a flow of quotations of the dealer according to which he can send the order for making of a trading activity at any time.
Currency of JPY (Japanese yen) - monetary unit of Japan.
Slangy name of New Zealand dollar (NZD).
Trade line item which profit grows with a growth of market price. When in case of position opening the trader buys a reference currency of couple, say that he takes a long position.
Ratio between the amount of pledge and amount of a trading activity: 1:33, 1:100, 1:200, 1:300, 1:400, 1:500. Leverage (leverage) 1:100 means that for implementation of the transaction it is necessary to have on the trading account at the dealer the amount of 100 times smaller, than the amount of transaction.
Closing of the existing line item by the conclusion of the counter transaction.
An opportunity to perform large deal, without having influenced considerably movement of the price. Forex on which it is always possible to make the transaction (in working hours) is liquid.
Long and short positions of identical amount, open source software to the same tool on one trading account. For example, if the client opens two lots on purchase and 3 lots for sale on the same tool, then 2 lots on purchase and 2 lots for sale are the varnished line items, and 1 lot for sale by the varnished line item isn't.
The abstract designation of quantity of securities or base currency accepted in a trade platform.
Statistical data which (as it is considered) predict future development of economy.
Limit the order - restriction for a maximum price of purchase or the minimum selling price. For example, if the current quotation of USD/JPY 117,00/05, then the order a limit on purchase of USD can be determined by the price lower than 117 (for example, 116,50).
Lot size Forex - the number of securities or base currency in one lot.
Interest rate on which the leading London banks credit each other.
The dealer who is regularly publishing purchase prices and sales of the financial instrument with the liability to conclude the bargain on the specified price.
The obligatory amount of means brought by the investor in providing a line item.
The requirement of the broker or dealer to deposit an additional cash or other assets for an obligation fulfillment guarantee on an unprofitable line item of the client.
Renewal of trade in the market Forex after days off, holidays or after a break between trading sessions.
Exposure of the prices in the market to changes.
The relation of equity (means) to a necessary margin expressed as a percentage (pledge). Formula of calculation of a margin: (equity/margin) * 100%.
The dealer's mistakes in case of opening / position closing of the client or execution of its order at the price, significantly different from the price for this tool in a flow of quotations on the moment of making of this action, and also any other action or failure to act of the dealer connected with obviously wrong determination of price level by it in the market at a given time.
Necessary pledge for maintenance on the account of open line items.
Unrealized Gain/Loss - a theoretical profit or loss on the open line items revaluated according to the current market quotations as it is determined by the broker at own discretion. In case of position closing the unrealized profit or a loss becomes a realized profit or a loss.
Transaction of replenishment/money withdrawal from the trading account or transaction of provision/repayment of the loan.
Net line item (net position) - quantity of the purchased or sold currency which isn't extinguished by the conclusion of counter transactions.
The curb market (OTC market) - the term used for the description of any bargains concluded out of the exchange.
The counter (offset) transaction - a form of counter trade which serves for elimination or reduction of a part or all market risk on an open line item.
The price (offer price) at which the dealer is ready to sell currency. The same, as ask.
The order of the client to the broker to conclude the bargain on the specified price.
Open line item (open position) - a market line item on which at the moment time wasn't spent a reversing transaction.
The order (open order) executed when market price reaches specified. It is usually associated with the order, It is valid before cancellation (GTC).
Line item for the end of the working day (Overnight position) - transition of an open line item to the next working day.
The price specified in the order.
This schedule doesn't use time factor but only movement of the price.
The personal page of the client on the website of the company intended for identification of the client, accounting of orders on uncommercial transactions and also placements of reference information.
The order (pending order) on transaction in case of achievement of a certain level of the price.
Profit/loss (P/L or gain/loss) - the amount of the profit or loss in the forex-market got ("realized") from the closed line items, and a profit or loss ("unrealized") on the current open line items which are subject to fixed market revaluation.
Equal availability of quotations to all participants of the market.
Pip (point) - the smallest unit of the price of currency. Usually the point forex is the second or fourth decimal sign after a comma (that is 0,01 or 0,0001 respectively). See also: Tick.
Information on a flow of quotations.
The second currency in currency pair for which the client can purchase or sell base currency.
The price of the tool on which transaction of a purchase or sale is made. It is expressed in Aski Bid price type.
The sequence of the quotations on each tool arriving in the point-of-sale terminal.
Difference between the maximum and minimum price of the tool for this trading session.
Trade with use of leverage when the client has an opportunity to make transactions on the amounts considerably exceeding the size of means on its trading account.
Rollover Forex (Rollover forex) - postponement of an open line item for the following delivery date (valuations).
The term of the technical analysis determining the level at which usually participants of the market begin to sell.
Line item which profit grows in case of decrease in market price. When in case of position opening the trader sells a reference currency of couple, say that he takes a short position.
The request for sale of any tool (Sell limit order) which can be performed at the price equal or above stated in the order.
Rather sharp movement of the price up or down for a short period.
Sviss (swissy) - the slangy name of Swiss franc (CHF).
Forex a swap (swap) - simultaneous sale and purchase of one quantity of a certain currency with different value dates.
End-to-end handling of transactions of STP (Straight Through Processing) - direct execution of orders.
In case of such model the broker is interested in growth of the trading volumes as he gets profit in the form of the commission for transactions. Between Forex broker, the applying STP, and the client there is no conflict of interest.
Spread – a difference between a purchase price (Bid) and sales (Ask) of currency which is measured in points.
One of slangy names of the British pound (GBP).
The order on forced position closing without consent of the client and his prior notice in case of shortage of means for maintenance of an open line item.
Stop лосс the order (stop-loss) according to which the open line item is automatically liquidated at the specified price. Similar orders are often used for minimization of losses if the market moves against the investor. For example, if the trader took a long position on dollar at the price 156,27, he can appoint the order stop лосс at the level of 155,49 that will limit its losses when the dollar decreases below this mark.
Equality of the purchased and sold amounts on the same tool, and also in case of absence on the account of the trader of open transactions.
The term of the technical analysis determining the level at which usually participants of forex of the market begin to buy.
Current market price. Payment under spot transactions usually happens in two working days after their conclusion.
Any share, future, option, precious metal, interest rate, bond or stock index.
Date of transaction - date of the conclusion of the transaction.
Simultaneous specifying of a selling price and purchase of currency on forex the market.
The forex tool - currency pair or the contract for a difference.
The size of the market of forex - a total cost in terms of money all performed transactions for the considered time period.
The work of number of lots on lot size.
The order of Take Profit is intended for fixing of profit on a line item in case of rate movement of the financial instrument in the profitable direction.
Forecasting of the prices on the basis of the analysis of market data, that is historical data on trends and average price values, amounts of transactions, open transactions, etc.
Tic forex - the smallest unit of the price of currency. Usually the tic of forex is the second or fourth decimal sign after a comma (that is 0,01 or 0,0001 respectively).
The transaction that-nekst (tom-next) - simultaneous purchase and sale of currency with delivery next day.
Market situation when quotations throughout the long period of time arrive in a trade platform less than in normal market conditions. As a rule, such condition of forex of the market is characteristic of Christmas holiday, national holidays in the G7 countries, during the period from 23:00 Moscow time till 3:00 Moscow time etc.
Cost export volume of the country less the cost of its import.
The trading account forex - the unique personified register of accounting of transactions in a trade platform in which the complete finished transactions open for a line item, uncommercial transactions and orders are reflected.
Transaction on purchase or sale of the tool.
The trader - the participant of the market who makes transactions with a revenue generating purpose.
Forex a trend (trend) - the direction of movement of the market: ascending, descending or side.
Uptick - the new price quotation which is higher, than previous.
The main interest rate of the USA (US Prime Rate) - a rate at which banks of the USA are ready to issue the credits to the clients.
In the USA the rule uptick obligatory also prohibits to investors to sell the share without covering if the price of the prior transaction isn't equal or not low prices of short sale.
Variation margin (variation margin) - an additional margin which the broker demands from the client owing to rate fluctuations in the market.
Forex market volatility - the statistics characterizing a tendency of change in time of market price.
Completion date of liabilities (accomplishment of payments). In spot currency transactions value date (value date) usually is the second working day following transaction date.
The World Trade Organization of WTO (World Trade Organization) - the international government organization (more than 120 member countries) designed to regulate questions of international trade; it is created in 1994 as a successor of GATT. The headquarters of the WTO is in Geneva. Russia was accepted in this organization in 2012.