Forex Glossary


Bitcoin, Ethereum and Litecoin are the most popular crypto It is the process of reconciling purchases and sales of various financial instruments. One of the largest options and futures exchanges in the world.


Since people have memory, they remember certain price-levels where the price had difficulties to break below in the past. Given its nature, the bid price is always lower than the ask price. The US dollar and the Swiss franc currency pair, where the US dollar is the base currency and the Swiss franc is the quoted currency. The Triple bottom graphical price pattern is usually formed in a downtrend and serves as a sign of its further reversal. This pattern is considered to be more significant than the “double bottom”.

Cayman Islands Dollar

Leveraged products are financial instruments that enable traders to gain greater exposure to the market without increasing their capital investment. A Fibonacci retracement is a key technical analysis tool, used to gain insight into when to place and close trades, or place stop-losses and take-profits. The Federal Reserve bank, or the ‘Fed’ for short, is the central bank in charge of monetary and financial stability in the United States. It is part of a wider system – known as the Federal Reserve system – with 12 regional central banks located in major cities across the US.

  • Liquidity is used in finance to describe how easily an asset can be bought or sold in the market without affecting its price – it can also be known as market liquidity.
  • Investing – Investing refers to the allocation of money into different trading instruments , with the goal of making a profit.
  • Day trading is a strategy of short-term investment that involves closing out all trades before the market closes.
  • Traders who favour upward price action and hod long positions.
  • The final price of an asset at the end of a trading session, or the price at which an individual trade has been closed.

A lot is a standardised quantity of the currency you are choosing to trade with, with one lot equalling 100,000 units of a particular currency. This term refers to when a trade is put in motion and subsequently completed. Shift of a forex position to another delivery, resulting in additional charge. Cutting an investor’s net position to zero for an investment to no longer accrue gains or losses. Currencies are not able to be purchased or exchanged individually.

Market Price

The two shifted moving averages define the upper and lower bands of the envelope. Buy signals are generated when prices reach the lower band whereas sell signals are generated when prices reach the upper band. The first candle is a long black body trading in the direction of the decline, showing off the bears’ strength. The second candle is black, and of a regular size gapping below-reaffirming the downward move.

Forex Today: Market Expects US Inflation to Fall Today –

Forex Today: Market Expects US Inflation to Fall Today.

Posted: Thu, 12 Jan 2023 08:00:00 GMT [source]

Margin call – is a situation when your margin deposits have fallen below the required minimum level. Ask – price of the offer, the price you buy currency for. The identification and assessment of the risk level, as well as taking actions to eliminate the risk to a new desired level and monitoring that new risk level. Any transaction that has not been closed by a corresponding opposite transaction. The suggested price at which a currency can be bought (“Ask” price). The indicator is used to determine the overbought and the oversold situations.

Describing trading conditions of low liquidity, i.e. a low volume of trading which may cause choppy price movement. Greenwich Mean Time – The time zone most frequently used in the forex market as it remains unchanged throughout the year, without daylight savings or summertime adjustments. A literal gap in price movement where trades have not occurred, often after the release of important economic data. Trading contracts based on assets which do not entail actual asset ownership.

Trade Balance Class A group of securities with the same behavior in the market, characteristics, and adherence to laws and regulations. Audit Internal or external assessment of the financial statement of a firm or organization by looking into their records. Australian Dollar Australia’s official currency and the legal tender of Kiribati, Nauru, and Tuvalu. The currency, presented with the symbol A$, is comprised of 100 cents.

A high reading is seen as bullish for the country’s currency whereas a low reading is bearish. Released by the Bureau of Economic Analysis, Department of Commerce. A Central Bank buys or sells its currency in the foreign exchange market in order to raise or lower the value of its currency in respect to another currency. It does so with the primary goal of establishing a more competitive international trading environment.

Investing in stock market exposes you to more risk and so investors will expect a higher return. Measurement of the monthly change in the average level of prices at retail, normally of a defined group of goods. Funds held against future contingencies., normally a combination of convertible foreign currency, gold, and SDRs. Official reserves are to ensure that a government can meet near term obligations.

Forex Today: Japanese Yen Bounces Back –

Forex Today: Japanese Yen Bounces Back.

Posted: Thu, 19 Jan 2023 08:00:00 GMT [source]

The foreign exchange market, commonly referred to as the Forex or FX, is the global marketplace for the trading of one nation’s currency for another. If you believe that the market and price will drop down, you are a bear. They traditionally move their claws downwards when trying to beat the opponent. It is actually the first terminology you will be introduced to when trading for the first time. It means that a trader buys and sells one currency about another. Volatility – Describes the level of price fluctuation in a currency pair.

A credit provided by the broker to his client for making large volume deals with a relatively small amount of capital. The Channel is a sustainable corridor of fluctuations in the asset price with a constant width. The ATR indicator was developed to measure market volatility. In the terms of Forex and CFD trading you may find expressions you are unaware of and learn their meanings. By a simple click, you can get much more detailed information of these terms. A complete list is available on the “Countries where the company’s services are not provided” page.

This is a notification which alerts you that you need to deposit more in your trading account, to ensure that there is sufficient margin to keep existing positions open. The theory holds that human behavior changes during different phases of the moon. Also a 28-day or 20-day cycle exists in the stock markets. In the financial markets, latency refers to time units required for a trade order to be sent and executed by the broker’s server.

foreign exchange market

He resigned on 12 September 2007 for health reasons and he is honored to the longest serving PMs in Japanese history. Besides this, has he introduced a “Three Arrow” policy named Abenomics for fighting the deflation and economic growth in Japan. RBA – The Central Bank of Australia, established on 14 January 1960 and governed by Philip Lowe. Its headquarter is in Sydney, New South Wales, Australia. Besides being a Central Bank, it’s charged with the responsibility of price stability and economic growth.