All terms Forex dictionary

forex terms

Resistance, resistance level (ResistanceLevel) — significant level, at which price usually slows down, begins to fall. A deal, trading operation - action, which a trader undertakes on the stock exchange. Risk (Margin) — the amount of funds in the trader’s account, necessary to maintain open market positions. The resulting term Margin denotes a signal, when the trader's account becomes insufficient.

Price reduction, as a rule, after touching the resistance level. Minority shareholders - shareholders, owning small blocks of shares in a company. As a rule, they are not members of its Board of Directors and hold shares for investment or speculative purposes. Mechanical trading system (MTS) — an algorithm for trading on the stock exchange without the use of subjective decisions. This is usually a clear automated trading strategy, designed for robots. Limits - a term from the QUIK platform, means own funds.

  • By deciphering such Forex terms, you can understand the very essence of their practical application as a strategy.
  • Volatility is the range of movement of the price of a currency over a certain period of time.
  • Cuttlefish (sprinkles) — agency S&P or American stock market index S&P.
  • Cross rates are pairs, which does not include US dollar.
  • The same ticker is traded on multiple exchanges, and its cost will differ on individual platforms.

The currency pair quote has two indicators – purchase price, and sales of currency by a trader, ask is the second indicator of the price of a currency pair, by its value you can find out the cost of purchasing a currency for a trader. https://forexby.com/ Spread is the difference between the purchase price (ask) and selling price (we) currency pair. It represents the broker's commission for providing trading services.

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Fundamental Analysis, fundamental - an approach for assessing the market, industry, economy. It includes a set of methods for analytical research of macro and microeconomic data, comparing them with each other, as well as financial analysis. Take profit or target (Profit Target, Take Рrofit) — price value, on which the planned profit taking takes place.

Bear market (bear market)

forex terms

Position trading in stock trading is a specific strategy, which is different from other types of trade. At the same time, the price does not move up or down, but only to the side, this is what inspired the name of this term. But which monetary unit is the most stable?? It turns out that this is for the most popular American dollar and not the euro.. Even high interest rates on deposits cannot compensate for exchange rate losses, There is only one way out - to use hard currency to store savings. Among the signals, that the financial bubble is about to burst - sharp price fluctuations, the appearance of negative news or a sharp drop in transaction volumes.

Dealing center.

It is always equal to one unit and the value of the quoted currency is expressed relative to it. For example, in the GBP/JPY pair, the British pound (GBP) is the base currency. The Forex world is an exciting universe, where the currencies of different countries dance in a complex waltz, determined by economic news, political events and global trends. This market, working 24 hours a day, 5 days a week, attracts traders from all over the world, promising potential profits and, at the same time, requiring a deep understanding of its subtleties. Understanding basic terms and concepts is key to successfully navigating this complex, but potentially profitable area.

Market maker - face, which provides the exchange with services to maintain prices and/or trading volume on various financial markets. Read more about, who is a market maker and how does he work?. Line graph (Line Chart) — price movement chart, curved line.

forex terms

Currency risk – the risk of losing a certain amount as a result of unfavorable changes in exchange rates or the price of banking metals. Positive news is published on Internet sites, the bulls themselves actively spread rumors about, that the price should rise even more. When the number of such trading participants begins to play a decisive role, the market becomes “Bearish”. Typically, stock trading uses a lot of different indicators that characterize a given entry.. Binary option – a transaction with a pre-fixed profit or loss, depending on the financial result of the operation.

A support level is a level below which the price usually does not fall, and a resistance level is a level above which the price usually does not rise.. These levels are used to determine potential market entry and exit points. The choice of order type depends on your individual trading strategy, level of risk and market conditions. It is important to understand the features of each order type, to use them effectively in your trading.

Basic terms of the Forex market – Trader's Dictionary

Systematic trading - trading forex terms according to the strategy with strict adherence to the trading plan. Used for a sequence of transactions with the same characteristics. The reaction is usually, temporary price decline after an uptrend.