Forex Education Center And Investment- Definition Of Terms In Forex, the forex trading there are many terms that the term should be understood as we understand it and the terms of trade will always be with us in the future. and between the short term and the definition are as follows
-Account (Account) - Notes in the database, which contains information about the user and other objects of the system.
-Fundamental Analysis - market analysis type, in which th
e estimate is based on financial market news, analysis of economic and political information to predict market movements.
-Technical Analysis (graphical analysis) - which type of market analysis in this estimate is based on the fact that the market has a memory and the future will be influenced by changes in behavior patterns in the past.
-Arbitrage - Transfer funds from one market to another market to profit from the difference in interest rates, exchange rates, or commodity prices.
-Aussie (AUD) - a slang term for the Australian dollar.
-Automated trading - the special method of trading when programs execute orders on the trader's Behalf, based on a particular system, but without the participation of the traders.
-The central bank - Bank that provides financial services to the government and the country's commercial banks.
-Bull (Bull) - Trader, the main priority is the increase in the exchange rate.
-News Trading (trading News) - The type of trading system, the essence of which is to receive a profit on the price gaps at times of important economic news releases.
- Bear (Bear) - Trader, which is the preferred currency devaluation.
-Broker - a wealthy individual or company that takes the responsibility to be an agent between buyers and sellers of financial instruments while charging a fee (commission fee).
-Buy Limit - Pending orders to buy at a price lower than the current price level (buy cheaper than now). It is placed in the hope that prices will fall to a certain level and then will begin to rise again.
-Buy Stop - Pending orders to buy at a price higher than the current price level (purchase more expensive than it is now). It is placed with the expectation that the market price will reach a certain level and will continue to grow.
-Cable - slang for a pound. It is called this way because the first offer that was sent to America by the trans-Atlantic cable in the middle of the 19th century.
-Candlesticks - One method of displaying graphics exchange rate changes of financial instruments'.
-Close Order (position) - the reverse process of selling / buying the volume of such financial instruments, which compensates for the buy / sell volume opening position.
-Dealer - An individual or company with whom the trader has an agreement with, set up the basics of trading operations. Dealers take the responsibility to act as the second part of the transaction.
-Deposit - Funds are included in the account for further transactions.
-Diversification - The strategy aims to reduce risk by allocating investments in financial instruments or investment object.
-Instant Execution (Instant Execution) - Method execution order, where the order is executed at the price indicated. If the price changes while getting to the trading server, the client gets a notice about the change in price (requote). Traders can accept or reject the new price to be executed.
-Execution Market (Market Execution) - Method execution order, where the order is executed If any. If the price changes at the time of execution of the order, it will be executed on the new, the price changed.
-Equity (Equity) - indicator that characterizes the current status of the trader's account. It is calculated as follows: equity = balance + floating profit - floating loss.
-Expert Advisor - Automatic System (script) that executes the trade without trader's participation is based on a predetermined algorithm.
-Flat - Period when the price remains the same range and does not indicate the direction of growth or decline.
-Gap - Break on the graph is caused by a mismatch between the offer price of an open trading period and the closing price of the previous trading period. This can occur due to unforeseen circumstances (eg, after the weekend).
-Day Trading (Day Trading) - Trade operations are completed in one day.
-Hedging - The use of a financial instrument to reduce risk, which is linked to the influence of unfavorable market factors on the price of another financial instrument, related to the first or the cash flows they generate.
-Indicators - The tools of computer analysis of price movements based on the statistical data used in technical analysis.
-Financial instruments (Financial Instrument) - Product tTipe financial market environment (ie currencies, stocks, futures, options, etc.)
-Key (Lock) - The presence of the two open positions of the financial instruments in the opposite direction at a time.
-Kiwi (NZD) - a slang term for New Zealand currency (New Zealand dollar).
-Exchange rate (exchange rate) - The ratio of the price of one currency for another at a time. For example, 1 EUR can buy 1.3000 USD. Looks like EUR / USD = 1.3000.
-Profit (Profit) - Increased positive balance resulting from investment or trading, after deducting all costs.
-Level of support - term technical analysis, which determines the rate at which market players often start buying.
-Leverage - The instrument allows a greater amount of trading, having only a portion of the amount. For example, with a 1: 100 leverage, you can trade in volumes of 100 000 USD, USD 1000 only to have your own funds.
-Liquidity (Liquidity) - Features an asset to change each other. A greater liquidity provides an opportunity to make a big deal, without being affected by significant changes in the price.
-Long - position to buy. Profit increases when market prices grow.
-Lot - A number of units or amount of assets that are used to execute certain trading instruments (currency pair, a lot of Forex standard of 100 000 units of the base currency).
-Margin - Collateral is required to carry out trading with the help of leverage. For example, if the leverage is 1: 100 and 10 000 USD order volume, margin is 100 USD.
-Margin call - Notification which indicates that little amount of funds remaining in your trading account and that, in the case of unfavorable market movements, stop out may occur. This notice is sent at a time when the rest of the funds on the trading account is a certain percentage of the margin (eg, 40%).
-Market-maker - a big bank or financial organization that determines the exchange rate at this time because most of the operations in the entire market volume.
-The base currency (base currency) - which stands first currency in a currency pair. All transactions are made with the base currency.
-Quoted Currency (Quoted currency) - which stands second currency in a currency pair. The price of the base currency is reflected by the aid.
-Major (Majors) - the main currency pairs: EUR / USD, GBP / USD, USD / JPY, USD / CHF, AUD / USD, and USD / CAD.
-Order (position) - Instructions client to execute trading on a certain level (to buy or sell one currency to one another). Once an order is opened, it should be closed to improve profit or loss.
-Open Order (position) -Processes buy or sell a certain volume of financial instruments for profit due to changes in supply in a favorable direction. To improve trading results, you have to close the order.
-Currency Pair (Currency pair) - Financial instruments ditraderkan in the foreign exchange market. The pair formed by the two currencies, which is written as a ratio of one to the other. For example, USD / JPY. The result is called the exchange rate or offers.
-Cross currency pair (Cross currency pairs) - Currency pairs that do not include USD. For example, EUR / JPY.
-Pending orders - Orders to buy or sell financial instruments in the future, when price reaches the level indicated in the order.
-Non-market offer - Offer in accordance with the following conditions:
significant price gaps;
return of the price in a short time to the initial level, the price gap formation;
the absence of rapid price dynamics before the advent of this offering;
the absence of important economic news, which obviously affects the financial instruments at the time of offer appearance.
-Offer (Bid) - The price at which you can sell the currency. The offer price is lower than the ask price.
-Short (Short) - Position to sell. Earnings increase with a decrease in the market price.
-Permitaan (Ask) - The price at which you can buy the currency. Asking price is greater than the Bid price.
-Pips (Points) - Unit price changes of financial instruments (0.0001). For example, if a major change 1.3000-1.3001, it means that he will change for 1 pip (point). Fractional unit price changes used in NDD and ECN accounts, which means that supply can be changed at 0.1 pips and will look like 1.30011.
-Trading platform (trading terminal) - Software that allows traders to execute the trading of computer or other telecommunication devices.
-Resistance level - term technical analysis, which determines the rate at which market players often start selling.
-Requote - Notification in the trading terminal on price changes during the process of placing the order. You can accept the new price or cancel the execution of the command. Requote can appear in an account with the Instant Execution.
-Balance (Balance) - The number of funds in the trading account after completing the last transaction in the given period.
-Scalping - a trading strategy in which a trader executes a large number of orders over a short period (even a few seconds) and improvement in a few pips profit.
-Slip (Slippage) - The number of market movements of the time of placing the order until its execution. This is the situation when the command executes at a better price / worse than indicated in the order. For example, this may occur during high market volatility.
-Sell Limit - Pending orders to sell at a higher price than the current price level (selling more expensive than it is now). It is placed with the expectation that the market price will increase to a certain level and then it will start to fall.
-Sell Stop - Pending orders to sell at a price lower than the current price level (selling cheaper than now). It is placed with the expectation that the market price will decline to a certain level and will continue to fall.
-Spread - The difference between the real-time Bid and Ask price of one currency to one another.
-Stop out - automatic closing process orders. This procedure took place at the time when the remnants of the trading account is a certain percentage of the margin (eg, 20%).
-Stop loss - a pending order type that helped limit losses while trading.
-Swissy (СHF) - a slang term for the Swiss franc.
-Swap - Cost to transfer trading positions open all night. Funds can be reduced or added from / to the account.
-Take profit - a pending order type that helps fix (taking) advantage while trading.
-Automated trading (Autotrading) - Method trading when a specific program executes orders on behalf of the trader, based on a particular system, but without the participation of traders.
-Тrailing stop - an instrument that "recruit" stop loss to a current price at a certain distance to the changing market and distributed. This helps for price movement in one direction.
-Тrend - clearly visible market movements in one direction (upwards - bullish, down - bearish, sideways - flat).
-Volatility - the strength of the exchange rate variation.
-Volume - The number of financial instruments to trade during a certain period.
Those are some terms and defition of present in about forex trading is expected understanding and understand our respective functions so that in the future we can apply in our trade