forex trading terms and definitions

Employment Situation - economic indicator of labor market. The spread is the difference between the buy and sell prices"d for a forex pair. Todays High - highest price of a transaction today. Order - traders order to a broker to conduct currency selling/buying transaction at a specified price. Cash Flow - cash flow of the capital as a result of trading activity over a certain period of time. What is leverage in forex? Broker - an agent who implements investors orders to conduct currency selling/buying transactions. Bank of Canada - the Central Bank of Canada.

Terms and definitions, is an integral part of the

Support Level - horizontal or inclined price level on the chart; upper limit of price fluctuation. So, a trade on EUR/GBP, for instance, might only require 1 of the total value of the position to be paid in order for it to be opened. Gap - is forex trading terms and definitions a break on the price chart of technical analysis which is caused by the difference in opening price of a new day and the closing price the day before. Bull Market - market that expects the rise in the currency rate. Trading platform - a set of software and hardware supporting trading in the market.

A country with an upgraded credit rating can see its currency increase in price, and vice versa. G7 - are the most developed countries, including the USA, Japan, Great Britain, Germany, France, Italy and Canada, which meet periodically at summits to resolve the issues of the world economic development, "Big Seven". European Central Bank - European Central Bank, ECB. So if you think that the base currency in a pair is likely to strengthen against the" currency, you can buy the pair (going long). There are other best forex trading platforms and forex trading system that actually works like: ForexTrader, MetaTrader, Tradeable, Bladerunner, Forex Fractal, etc. Includes: EUR/GBP, EUR/CHF, GBP/JPY. Margin is a key part of leveraged trading.

forex trading terms and definitions

But this cannot happen overnight it requires lot of analytical skills and lot of hard work. Personal Spending - economic data indicating changes in spending of a countrys population. One thing is very clear that you can only win, if you stay in the game. Aussie - dealers slang for Australian Dollar. Last - average value of the last bid and ask values; the price of the last transaction. Oversold - a situation in the market which happens after a rapid and significant currency decline. Keep daily track of currency rates.

Forex trading key terms and definitions

Investing in Forex trading can peak you profits, since market trades for 24 hours a day so that you can buy or sell whenever you are available. . Yard - means a billion US Dollars, in dealers slang. Currency Convertibility - is the possibility of free exchange of one currency into another. Double Bottom - a pattern of technical analysis indicating the situation when the rate goes down to a certain level twice and then goes. EU - European Union. While you decide and do everything in the manual trading. . Divergence - a situation in technical analysis when charts of indicators differ from price chart. Inflation - rise of the general level of prices. Foreign exchange has always been necessary to various people in different countries, and they are useful for international firms as well. Stop Loss - order to close positions to limit losses.

forex trading terms and definitions

Learn, forex with LiteForex Basic terms and ideas of the, forex world

Confidence: To have confidence in yourself and youre forex trading terms and definitions trading strategies and technique without any fear. Conclusion: Upon entering the business, a trader must know some forex jargons and terminologies to be able to competitive. Trailing-stop - order to minimize losses. Margin Level - an indicator showing the state of a traders trading account. Currency Pair - two indicated currencies which make up a" at the financial market. Brokerage Company - a Brokerage, whose mission is to bring together a seller and a buyer of foreign currency. Cable - dealers slang for the British Pound. While that does magnify your profits, it also brings the risk of amplified losses including losses that can exceed your margin.

Forex Trading Skills: Capability: Willing to bear losses without getting to be enthusiastic. Buy - currency purchase transaction. Efficient Market Theory - is a market theory, which reflects all factors, affecting changes in"s. Oscillator - a technical analysis tool utilized by the market, to predict the future course of a currency. Tick - minimum one time change of a trading tool price, in the financial markets. The automated trading makes all the decisions for traders; you are asked to input your data, and it will provide you with a response that will give you the appropriate action to take in order to make profits. If GBP/USD is trading.35361, then one pound is worth.35361 dollars. Overbought - a market situation which takes place after a rapid and significant currency rise. Nonfarm payrolls - number of employees on the payroll (excluding agricultural sector). Floor Broker - a broker who takes part in trading on floor. A base currency is the first currency listed in a forex pair, while the second currency is called the" currency. Read economical or financial papers to educate yourself regarding demand and supply of currencies.

What are the most important terms in, forex trading?

Money Management: As an investor or a trader, you have complete freedom of taking advantage of high leverage but you should only take additional advantage when you are expert and undergo complete forex trading training and forex trading education. Interest - forex trading terms and definitions is the payment for using the money borrowed as a loan. Value Date - the date when transaction terms are implemented. Chain Store Sales - an economic indicator, showing retail sales dynamics. So instead of depositing AUD100,000, youd only need to deposit AUD1000. Uptrend - ascending price trend, "bullish" trend.

Bull - a trader, whose trading tactics relies on the rise in currency price. The amount of currency converted every day can make price movements of some currencies extremely volatile. Downtrend - downward trend forex trading terms and definitions of currency price at the market. Existing and New Home Sales - macro-economic indicator of real estate sales at the secondary housing market. European Central Bank (ECB) - Central Bank of the European currency Union. Transaction Date - the date of currency transaction operation. Trading - securities or currency trading.

Terms, definitions, and meanings

If you want to open a long position, you trade at the buy price, which is slightly above the market price. Deposit - amount of money transferred to the traders account to cover further operations. Capacity Utilization - economic indicator, which shows production capacity workload. Margin trading - is currency trading supported by the margin pledge. Transaction - an operation of opening and closing of a currency position. What is a pip in forex? Todays Low - lowest price of a transaction today. Swap points - points calculated in advance for transferring open position to the next day with the help of swap operation. Pips are the units used to measure movement in a forex pair. The forex market is made up of currencies from all over the world, which can make exchange rate predictions difficult as there are many factors that could contribute to price movements. Balance of Trade (BoT) - difference between the volumes of exported and imported goods for a certain period of time in a country. Trend - a term of technical analysis, indicating general direction of the price movement. Less frequently traded, these often feature major currencies against each other instead of the US dollar.

PPI - index of producer prices (Producer Price Index). What is margin in forex? Fed, FRS (Federal Reserve System) - Federal Reserve System of the USA. Dealing center - a company which provides access to financial forex trading terms and definitions markets by creating clients applications for opening currency positions. Take-profit - currency sell/buy order for the open position at a specified price to gain profit. Long Position - is currency purchase, when "buy" position is opened.

Forex, glossary with, fX, trading, terms and, definitions

Leveraged trading therefore makes it extremely important to learn how to manage your risk. How does forex trading work? You need to learn money management before you take decision on trading on high leverage. Hedging - strategy which is used to reduce investment risks when urgent selling/buying transactions are concluded. The decimal places forex trading terms and definitions shown after the pip are called fractional pips, or sometimes pipettes. A major currency against one from a small or emerging economy. Cash Market - a market where transactions are carried out at the prices specified through cash payment. Pairs classified by region such as Scandinavia or Australasia. Leverage is the means of gaining exposure to large amounts of currency without having to pay the full value of your trade upfront.

If you think it will weaken, you can sell the pair (going short). Dealing - non-cash currency trading. Direct" - amount of foreign currency required to buy a unit of national currency. Day Trader - a trader who trades at the market during one day session. Channel - area on the trading tool chart within limits of which price movements take place. Similarly, a piece of negative news can cause investment to decrease and lower a currencys price.

Forex, trading, definition, what Does, forex, trading

Swissy - dealers slang for Swiss Franc. If the pound rises against the dollar, then a single pound will be worth more dollars and the pairs price will increase. Central banks, supply is controlled forex trading terms and definitions by central banks, who can announce measures that will have a significant effect on their currencys price. Dealer - market participant who deals with currency buying and selling on his own account. Benchmark interest rate - minimum interest rate which investors expect when buying securities.

Foreign Currency - is a currency of any foreign country which can be used as a medium of circulation in another country. Keep look for the best strategy that fits to your long-term or short-term goals. To keep things ordered, most providers split pairs into the following forex trading terms and definitions categories: Major pairs. One have to keep in mind that higher leverage will lead you to higher risk. The black box is one of the latest automated systems for forex trading. Also, weve developed an A to Z index to make your navigation easier. Indicator - data which gives information on the general state of economy or financial markets. How do currency markets work? Wholesale Trade - is a macro-economic index of changes in wholesale sales. Offer - is the price at which a buyer is requested to make a purchase. Volume - activity level of currency trading.